Washington, D.C. – Liability costs for long term care providers are expected to increase by five percent and claims frequency is also expected to rise, according to an analysis released today by the American Health Care Association (AHCA) and Aon Global Risk Consulting, the risk consulting business of Aon plc (NYSE:AON).
The 2014 Long Term Care General Liability and Professional Liability Actuarial Analysis provides estimates of loss rates, or the cost of liability to the beds that care providers operate. The projected national 2015 loss rate, which is a combination of claim severity and frequency, is $2,030 per occupied bed. This means that an operator with 100 beds can expect $203,000 in liability expenses in 2015.
"The need for long term and post-acute care is growing, and increasing liability costs impede our ability to serve those we care for and their families," said Mark Parkinson, AHCA President and CEO. "This report underscores the importance of delivering solutions so we can continue to provide the highest quality care and improve lives."
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