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Liability reform, alternative dispute resolution can save SNFs a bundle in liability claims

July 13, 2012
by pamela tabar
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State medical liability reform and alternative dispute resolution can have a dramatic effect on liability costs, especially for skilled nursing homes, according to a study conducted by the American Health Care Association and National Center for Assisted Living (AHCA/NCAL) and Aon Global Risk Consulting.

In the long-term care industry, medical liability loss rates and claim severity have risen by about four percent every year since 2009.

States that have enacted medical liability reform are seeing a significant drop in medical liability costs, whereas liability costs are rising in states without reform, the study showed.

The potential benefits of pre-dispute arbitration agreements are even greater, the data show. Claims settled via an arbitration agreement were estimated to be 21 percent cheaper than non-arbitrated claims.

The study analyzed more than 19,000 claims from 37 long-term care providers.

To learn more, read the full study (PDF).