Malpractice paid losses and financial performance of nursing homes

• DOI: 10.1097/hmr.0b013e3181e62c36
• Publication Date: 2012-07-18T10:29:40Z
• Authors: Mei Zhao; D. Rob Haley; Reid M. Oetjen; Henry J. Carretta
• Keywords: malpractice paid losses; nursing homes; Medicare; LITIGATION; financial performance; 03 medical and health sciences; 0302 clinical medicine; Humans; Quality of Health Care; Skilled Nursing Facilities; Insurance Claim Reporting; Analysis of Variance; Risk Management; FLORIDA; 9. Industry and infrastructure; Malpractice; Liability, Legal; United States; Nursing Homes; PRESSURE ULCERS; 8. Economic growth; Health Policy & Services; Florida; Health Services Research; QUALITY-OF-CARE

Background: Florida's nursing home industry has experienced significant financial pressure over the past decade. One of primary reasons is dramatic increase in litigation activity for providers claiming negligent care and abuse. Although anecdotal reports indicate a higher cost because malpractice facilities, few studies have examined extent paid losses their effect on performance homes. Purpose: The purpose this study was to examine impact Methodology/Approach: Medicare Cost Report data Online Survey, Certification, Reporting Florida skilled facilities 6-year period from 2001 2006 were used calculate indicators as well organizational market factors. Descriptive analysis multivariate regression loss performance. Findings: claims strongly associated with Nursing had consistently lower total margins period. threat may create an incentive homes improve quality care; however, large can also force into situation where organization no longer resources quality. Practice Implications: managers must assess risk identify tactics mitigate these risks better provide safe secure environment older persons. In addition, research offers support local, state, federal policymakers revisit issue through its insight relationship litigation.