Liability costs rising: report

Share this article:
Mark Parkinson
Mark Parkinson
Long-term care operators have had to pay 4% more annually in liability costs over the past three years, a new analysis shows.

Costs have soared from just over $1,000 per bed in 2005 to what is projected to be $1,540 in 2013, according to an Aon Global Risk Consulting report. Claim severity projections are $175,000 per bed by 2013.

“This analysis shows costs exploding in states without meaningful, effective medical liability reform,” said Mark Parkinson, the president and CEO of the American Health Care Association, the study's sponsor.

Bright spots: The frequency of claims has stayed the same over the past four years and cases that were settled by arbitration were 21% less costly for providers.
Share this article:

More in News

Long-term care continues to lead in deal volume and value: PwC report

Long-term care continues to lead in deal volume ...

Long-term care bucked healthcare industry trends with strong merger and acquisition activity in the second quarter of 2014, according to newly released data from professional services firm PricewaterhouseCoopers.

Empowering nurse practitioners could reduce hospitalizations from SNFs, study finds

Granting more authority to nurse practitioners is associated with reduced hospitalization of skilled nursing facility residents, according to recently published findings.

Pioneer ACO drops out of program, despite reductions in skilled nursing utilization

A California healthcare system has become the latest dropout from the Pioneer Accountable Care Organization program, despite reducing skilled nursing facility utilization and improving its readmission rates. Sharp HealthCare announced its decision in a quarterly financial statement released Tuesday.