{"id":22518,"date":"2017-09-14T20:32:53","date_gmt":"2017-09-14T20:32:53","guid":{"rendered":"https:\/\/one.sightlinemg.com\/airforcetimes\/uncategorized\/2017\/09\/14\/dod-fires-armed-forces-retirement-home-boss-over-refusal-to-enact-new-revenue-plan\/"},"modified":"2026-08-08T02:21:58","modified_gmt":"2026-08-08T02:21:58","slug":"dod-fires-armed-forces-retirement-home-boss-over-refusal-to-enact-new-revenue-plan","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/airforcetimes\/veterans\/2017\/09\/14\/dod-fires-armed-forces-retirement-home-boss-over-refusal-to-enact-new-revenue-plan\/","title":{"rendered":"DoD fires Armed Forces Retirement Home boss over refusal to enact new revenue plan"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Defense officials on Thursday fired the chief operating officer of the Armed Forces Retirement Home, citing his unwillingness to follow their directions to shore up the finances of the agency\u2019s two homes, which care for about 1,000 former enlisted members.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Timothy Kangas was not willing to move forward with Defense Department plans to focus on new sources of income for the home\u2019s campuses in Washington, D.C., and Gulfport, Mississippi, said David Tillotson III, DoD\u2019s assistant deputy chief management officer, during a press call Thursday.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Officials are in the process of hiring another leader, he said \u2015 one with experience in running military retirement communities in a nonprofit setting, which means they generate income to supplement operations.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"410\" height=\"265\" src=\"\/wp-content\/uploads\/2026\/08\/Dr-Timothy-Kangas-HiRes.jpg.jpg\" alt=\"\" class=\"wp-image-45458\" srcset=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/Dr-Timothy-Kangas-HiRes.jpg.jpg 410w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/Dr-Timothy-Kangas-HiRes.jpg.jpg?resize=300,194 300w\" sizes=\"auto, (max-width: 410px) 100vw, 410px\" \/><figcaption class=\"wp-element-caption\">Dr. Timothy Kangas took over the top job at the Armed Forces Retirement Home in April 2016.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">However, Tillotson said, \u201cthe current chief operating officer has not indicated that he\u2018s on board with going in this new direction. In fact, he\u2019s been a little bit reticient to make some of those changes, and as a result, we\u2019re going to go ahead and make a leadership change.\u201d&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Defense officials&nbsp;\u201cappreciate his service,\u201d Tillotson said.&nbsp;\u201cDr. Kangas as the current chief operating officer has done some very good things in his 18 months of tenure, but I do think we\u2018ve come to a point where&nbsp;if we\u2019re going to drive forward with the new operating model we probably need to pursue new leadership.\u201d&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Kangas served for nine years as a combat medic in the Michigan Army National Guard, with the 107th Engineering Battalion, according to <a href=\"https:\/\/www.afrh.gov\/aboutus\/organization\/AFRH-management\/dr-timothy-kangas\">his AFRH biography<\/a>. He also served with a State Department provincial reconstruction team in Iraq. He holds a doctorate in&nbsp;Public Administration and Public Affairs from Western Michigan University, per his bio. He took over the top post at AFRH in April 2016.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Tillotson will hold a town hall meeting with residents at the Washington campus Friday morning, with the Gulfport residents participating through video teleconference.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cMy biggest concern overall is to make sure that we continue to provide service to the current resident population,\u201d Tillotson said. \u201cThese are veterans that served their country honorably for many years. I want to make sure that we\u2019re in a position to continue to provide them support as we move forward. I do think looking at new operating models doesn\u2019t undercut that intent.\u201d<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/militarytimes\/management\/pay-benefits\/military-retirement\/2017\/04\/05\/facing-budget-woes-could-armed-forces-retirement-home-be-run-like-a-military-base\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"127\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/afrh-w-from-afrh-website.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Facing budget woes, could Armed Forces Retirement Home be run like a military base?<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">Defense officials are considering drastic changes for the management of the Armed Forces Retirement Home \u2013 ranging from converting it into a \u201cmilitary garrison model,\u201d with a senior military officer at the helm, to privatizing it &#8212;  after a sharp decline in its financial health.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">The new sources of income are yet to be determined, Tillotson said. One option that has been considered is revising the fee structure for residents, which is based on a percentage of resident income and type of care received.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Whether or not any of the new sources of revenue will come out of the residents\u2019 pockets has yet to be determined.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe\u2019re looking at all sources of revenue. That\u2019s an issue we\u2019ll take up with the new chief operating officer. We\u2019re not going to lose track of the fact that we have a significant number of residents that are not going to be able to, under any condition, pay full price for their residence,\u201d Tillotson said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cPart of the mission of the Armed Forces Retirement Home is to provide support for those residents. We are not losing track of that mission.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One revenue source that is being evaluated is the golf course on the Washington, D.C., property. Changes could include how many people use the nine-hole course, and who is eligible to use it.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe current administration looked at the golf course as a cost issue, and opted to scale back,\u201d Tillotson said.&nbsp;\u201cWe did research, and it\u2019s an asset. Can we change the nature of how we conduct the business of the golf course and generate revenue that supports the retirement home?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A number of retirement communities across the country use this model, looking at assets such as facilities that could be rented as meeting rooms that could be used to increase income, he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Another example is doing everything possible to make sure Armed Forces Retirement Home gets reimbursed for medical care for residents from insurance plans and other sources, Tillotson said. In a memo earlier this year, then-Deputy Defense Secretary Robert Work directed the DCMO to explore agreements with DoD and the Veterans Affairs Department for reimbursement for medical care to veterans normally provided for veterans by those departments.<\/p>\n\n\n<figure class=\"wp-block-smg-jwplayer-video\"><atype-video-jwplayer nostick=\"true\" playlisturl=\"https:\/\/cdn.jwplayer.com\/v2\/playlists\/fCzRqMW8?tags=75708592-ab8c-4241-bad7-8953ac8baa63\" aspectratio=\"16 \/ 9\" mute autostart=\"false\"><\/atype-video-jwplayer><figcaption class=\"wp-element-caption\">With locations in Washington, D.C., and Gulfport, Mississippi, the Armed Forces Retirement Home houses about 1,000 former enlisted service members.<\/figcaption><\/figure>\n\n\n<p class=\"wp-block-paragraph\">Defense officials have been examining every aspect of the homes\u2019 operations, in the wake of a serious cash flow problem that resulted in nearly depleting the AFRH trust fund. The retirement home\u2019s trust fund balance has declined from $186 million in 2010 to $46 million in 2015, according to AFRH budget justification documents for fiscal year 2017. In fiscal 2015, the AFRH had $63 million in expenses against $48 in revenue.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The AFRH has been operating at a deficit of about $20 million a year, Tillotson said, with taxpayers making up the difference.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Officials have been looking at every aspect of the home, including operations, and have determined that the problem is not with operating costs. Those costs \u201care not grossly out of line,\u201d Tillotson said.&nbsp;\u201cWhile we can do things to be more efficient, that\u2019s not going to solve the problem. The path forward is a business model focusing on new sources of income.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Most service members\u2019 connection with these homes begins and ends with a 50-cent-a-month mandatory deduction from their paycheck.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In February, Work directed that the oversight of the Armed Forces Retirement Home be moved from the personnel and readiness division of DoD to the deputy chief management officer.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Attempts to reach Kangas for comment were not immediately successful.<br><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The move comes as Defense Department officials look for new ways to pay for the home&#8217;s two locations, which serve about 1,000 former enlisted members.<\/p>\n","protected":false},"author":7,"featured_media":44809,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":21,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[101,26,21],"tags":[],"coauthors":[1859],"class_list":["post-22518","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news-roundup","category-newsletters","category-veterans"],"acf":{"subheadline":"","legacy_arc_id":"T7K5YCPE5JFLPJVWQ3OI4LPIZQ","arc_canonical_url":"\/veterans\/2017\/09\/14\/dod-fires-armed-forces-retirement-home-boss-over-refusal-to-enact-new-revenue-plan\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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