For budget-conscientious senior living facility owners, recent news released from the annual Aon Risk Solutions report may be troubling. According to the 2013 Long Term Care General Liability and Professional Liability Actuarial Analysis, the report finds that claims against providers have increased about two percent per year, while costs have increased three percent since 2010. Average claims are forecasted to cost a provider $213,000 by the end of the year. With this knowledge, what can senior living facility management do to reduce or cap their claims? Here are a few options:
- Implement arbitration agreements. Arbitration agreements provide a framework for resolving claim allegations without resorting to the courts, with arbiters representing each side and a neutral arbiter resolving differences. The report found that signed arbitration agreements reduce costs by nearly $30,000 overall.
- Educate family members on realistic expectations relative to the care and services provided in a senior living setting. Family members need to be reassured they are making the best decision for their loved one as well as the realities of nursing home life.
- Leverage association and legislative relationships in states lacking tort reform in order to provide a more fiscally balanced process when claims do occur.
With rising costs, senior living facilities should be aware of ways to improve the efficiency, safety and success of the organization. With the right preparation, senior living facilities can cut costs stemming from claims. If you’re looking for ways to minimize risks and cut costs, the AssuredPartners NL senior living team can help. To learn more and contact an agent, click here: AssuredPartners NL Senior Living.
Source: Aon Risk Solutions – 2013 Long Term Care General Liability and Professional Liability Actuarial AnalysisShare This: