A state human resources consultant reported to leaders of the Minnesota Department of Veterans Affairs in early January that there were widespread feelings of “doom, fear, and intimidation” among workers at the state Veterans Home in Hastings.

It was the third time in eight months that allegations of a toxic workplace were probed by state officials. But it wasn’t until mid-March, after caregivers went public with stories of years of bullying and intimidation of staff at the Hastings veterans home, that Commissioner Larry Herke decided to fire two top officials in charge of the facility.

Lynn Wachtler, a nurse practitioner and former primary care provider at the Hastings home, said it was “regrettable that the agency failed to address our claims in a timely manner and left employees no other choice except to involve the media to effect necessary changes.”

Wachtler is one of more than a dozen current and former workers who have spoken out on the problems at the Hastings veterans home domiciliary.

“It is clear our claims had merit,” she said.

In a statement, the state Department of Veterans Affairs said Herke had been working to address workplace problems in Hastings since he became aware of them. He asked the state’s Employee Assistance Program for a “neutral assessment” of the workplace culture.

The department’s statement said that report “reinforced the importance of continuing to address employee concerns and make a positive change to the culture at the Hastings Veterans Home.”

Then “because that culture change was not happening as quickly as expected,” Herke “made the decision to change leadership at the Deputy Commissioner and Administrator levels,” the statement said. Herke announced on March 19 the removal of Doug Hughes, who oversaw veterans health care, and Mike Anderson, the administrator of the Hastings veterans home.

What the inquiry found

A summary report of an investigation by Minnesota Management and Budget’s Employee Assistance Program, obtained by the Pioneer Press through a public records request, said that caregivers felt “this is a toxic culture, waiting for the next thing to happen, whether being disciplined or investigated.”

The inquiry also found morale was suffering and there was a “pervasive lack of trust” and what felt like a “punitive and hostile environment.” Caregivers felt speaking up would result in retaliation or that nothing would change.

Senior medical staffers told Karen Hanauer, a consultant with the Employee Assistance Program, their “expertise and professional decision making is in constant question, not trusted or respected.”

Furthermore, a majority of the workers who spoke to Hanauer “reported that they themselves, or a colleague, have undergone or are going through an investigation. The perception is that these investigations are used as an intimidation tactic.”

At the request of Valerie Klintzke, Veterans Affairs’ human resources director, Hanauer held optional listening sessions in early December 2022 and spoke with 14 different staff members at the Hastings home. Her report to leaders is dated Jan. 5, 2023.

Employee Assistance Programs are typically a resource for workers to address personal or job-related problems and can include counseling, wellness programs and legal advice.

Commissioner Herke said Hanauer’s inquiry was the third into allegations of a toxic workplace culture at the Hastings veterans home. State officials declined to release any details of a previous investigation by the state Department of Veterans Affairs or a separate inquiry by the state’s human resources department, citing a broad exemption in the state public records law that keeps many personnel records private.

However, the more than a dozen former and current workers at the Hastings facility told the Pioneer Press that no one from either state agency talked with any of them until Hanauer held her December listening sessions. They said the only response to a packet of detailed allegations they sent to Herke and Gov. Tim Walz was correspondence stating “continuous education and process improvements” were underway and the investigations had been closed.

Fallout from allegations

After caregivers from the Hastings home went public with their allegations of a toxic workplace culture on March 5, Herke decided two weeks later to remove Hughes and Anderson.

Two days after they were fired, Herke told members of the Senate veterans committee that he swiftly opened an investigation in June 2022 when he first received the caregivers’ allegations. He subsequently developed a 10-point plan to address the allegations, which included anti-bullying and workplace harassment training.

Sen. Mark Koran, R-North Branch, who is a member of the Senate veterans committee, expressed concern with Herke’s response during the hearing, saying it was clear the problems had been allowed to fester and that the department’s plans to remedy them didn’t go far enough.

“Everything in there he should have been doing already,” Koran said of Herke’s plans.

Koran added in an interview Thursday that it amounted to “gross negligence” that Veterans Affairs leaders had confirmed the allegations through an investigation, but waited more than two months to act. He said the agency needs more than two “token firings” to address systemic problems.

Hughes, the former deputy commissioner for veterans health care who was fired, also had criticisms of Herke’s leadership. In an interview the night his dismissal was announced, Hughes said his former boss was belittling and a micromanager.

On April 3, Herke wrote a message to top staff members that he was taking medical leave and expected to return to work in May.

State officials say Herke’s leave is not related to the allegations of workplace problems in Hastings. But his absence comes at a time that the agency he leads is working to address widespread allegations of bullying and retaliation against workers as well as safety problems.

Herke wrote that Hughes’ replacement, Brad Lindsay, would serve as interim commissioner until he returns in May. Lindsay oversaw veterans programs and services before taking over as deputy commissioner of health care.

“MDVA has a strong and experienced leadership team,” Herke said in his note to staff. “I have full confidence in your abilities during my temporary absence.”

In a statement, Gov. Walz, who served 24 years in the Army National Guard, wished Herke a speedy recovery and said he is “grateful for MDVA’s diligent and ongoing work to address workplace concerns at the Hastings Veterans home.”

Complaints moving forward

Meanwhile, at least 10 former caregivers say they are moving forward with federal Equal Employment Opportunity Commission complaints against the state Department of Veterans Affairs for not doing enough to address problems at the facility.

Those complaints are just part of the various legal actions former caregivers are taking in response to what they described as years of harassment, retaliation and bullying that drove away workers and led to unsafe conditions for both residents and staff.

Several former workers have filed worker-compensation claims and others are considering lawsuits. Other caregivers have challenged assertions by Herke and other Veterans Affairs leaders that veterans’ care has not suffered because of the workplace issues.

Wachtler and other caregivers told state senators that low staffing levels often made it difficult to meet the various needs of the veterans who live in Hastings.

The facility is a domiciliary, or care home, and not a skilled nursing facility. But many of the more than 100 residents are vulnerable from health and substance abuse problems and are supposed to have around-the-clock access to nursing, mental health, social work and senior care.

Herke acknowledged to the Senate committee that the residents living at the Hastings domiciliary have a variety of needs and that the department may need to “re-evaluate the staffing model.”

New homes opening

Problems at the Hastings veterans home come as lawmakers are debating whether to spend spend $78 million on the state’s portion of a $220 million project to replace the Hastings campus. The remaining money for the project would come from the federal government.

The state is also in the process of opening three more veterans homes — in Bemidji, Montevideo and Preston — that are expected to open later this year. The state Legislature approved $32 million for the facilities in 2018.

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