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Wednesday, October 28, 2026Oct 28

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Audit cites management, financial, quality of care problems in Tennessee-run veterans’ homes

Tennessee State Veterans' Homes / This undated state photo shows the 108-bed Tennessee State Veterans' Home in Cleveland, Tenn., as construction progressed.
Tennessee State Veterans' Homes / This undated state photo shows the 108-bed Tennessee State Veterans' Home in Cleveland, Tenn., as construction progressed. Tennessee State Veterans' Homes / This undated state photo shows the 108-bed Tennessee State Veterans' Home in Cleveland, Tenn., as construction progressed.

A new audit by the Tennessee Comptroller cites a series of lapses in financial oversight and patient care in state-operated nursing homes for veterans.

A 13-member Tennessee State Veterans’ Homes Board oversees five long-term care facilities to “provide support and care for honorably discharged veterans who served in the United States armed forces.” About 500 Tennessee veterans live in the homes in Cleveland, Murfreesboro, Knoxville, Clarksville and Humboldt. A sixth facility with space for 126 is under construction in Arlington, Tennessee.

The facilities are funded by Veterans Affairs benefits, Medicare, TennCare and private insurance. They have been operating in the red since at least 2020, the audit said. The homes get no state funding.

(READ MORE: State audit dings Tennessee State Veterans’ Homes management for errors)

Between 2020 and 2024, the board reported $57 million in revenues, but operating losses each year ranged from nearly $2 million to $8 million. A 2024 accounting error overstated the home’s cash balance by $7 million, the audit found.