Arkansas Veterans Affairs to Seek Outside Counsel to Pursue Home Resident Debts

The Arkansas Department of Veterans Affairs told the State Agencies & Governmental Affairs Senate committee that it plans to issue regional requests for qualifications for outside legal counsel to assist in collecting private-pay debts at the state veterans homes.

Austin Booth, ADVA chief of staff and chief financial officer, said an internal March 2020 fiscal review showed the two homes together generate about $20 million in revenue and that roughly $2 million in accounts receivable has accumulated since 2017. "We had about $2,000,000 that was outstanding," Booth said, adding that the agency collected roughly 90% of revenue but was concerned long-term uncollected debts could impair service delivery to future veterans.

Booth told lawmakers the agency has tried administrative steps and limited pilot contracting and now seeks to formalize a collections practice. "We have had a contract of this exact nature since March, and we utilized it on a trial basis ... and we had success with it," he said, describing two cases in which probate claims or settlement agreements recovered portions of large outstanding amounts.

Asked whether the attorney general’s office was consulted, Booth said the AG recommended outside counsel and the governor's office approved the request. Booth said ADVA intends to competitively bid two regional contracts — one covering Northwest Arkansas (Fayetteville) and one for central Arkansas — and estimated legal services would cost no more than about $50,000 per year.

ADVA Secretary Nate Todd emphasized individualized review and compassion in collections. "We examine each of the cases ... and we make those decisions based on compassion," Todd said, adding that contracting would follow small-business and minority-owned vendor processes where applicable.

Booth described ADVA’s operational changes since March: biweekly fiscal reviews of each private-pay resident, 30/60/90/120-day certified-letter notices, and reliance on OLTC discharge procedures when residents become nonpaying at the 120-day mark. He said much of the historical $2 million was tied to estates of deceased residents and prior audit findings in fiscal years 2017–2019.

Committee members pressed ADVA on the length of time debts were allowed to accumulate and on ensuring minority bidders are included when the RFQs are issued. Booth said the goal is to have an open, transparent RFQ process that provides opportunity to qualified firms across the state.

The committee did not take formal action on the RFQ plan; ADVA staff were thanked and dismissed at the end of the presentation.