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.
From the August 01, 2012 Issue of McKnight's Long-Term Care News
