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Article: Go-ahead for cost control: increased operating pressures mean nursing homes need help mitigating liability risks and costs.(Commercial Liability)
- Article from:
- Best's Review
- Article date:
- May 1, 2005
- Author:
CopyrightCOPYRIGHT 2005 A.M. Best Company, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Nursing-home liability, a once docile class of casualty risk, has changed significantly over the years into an insurance line which has the attention of both insureds and underwriters. The financial and operating challenges of operating a nursing home have had a direct effect upon the quality of services provided and liabilities generated by this area of health-care services.
CAUSING THE PROBLEM
While the reasons for these changes in nursing homes are many, the major drivers of liability costs are the following:
An Aging Population
In 1990 there were 31.2 million people 65 years of age and older in the United States. By the 2000 ...