Florida’s senior living facilities recorded the second highest average claims losses among the 50 states in 2022, amounting to $1,250 per occupied residential unit, according to a new study from the insurance services company WTW.
The analysis, which paints a picture of the legal environment senior care facilities deal with among the states, shows a general trend of the increased liability costs – due to falls, issues with medicines and other kinds of accidents – facing the long-term care centers.
The study also showed a wide variation of so-called loss costs – average legal claims payouts on a per-residential unit basis – among the states, from $180 in Texas to $1,675 in Kentucky in 2022.
“The study shows that insurance costs are beginning to accelerate just when operators are already struggling from other costs related to COVID-19 and inflation, such as rising labor and supply costs,” the WTW analysis states.
Kristen Knapp, spokeswoman for the Florida Health Care Association, pointed out that when an increasing share of the senior living facilities’ resources are spent on claims settlements, fewer funds are available for residents’ care and attracting and retaining qualified workers.
“... We need to keep our resources focused on improving quality, strengthening our workforce, and ensuring that our state’s seniors and people with disabilities have access to the care they need,” Knapp told the Florida Record in an email. “Too often, lawsuits demoralize staff morale and divert dollars that otherwise could be used to invest in quality care for our vulnerable residents.”
Florida’s legal environment continues to add to the burdens of the state’s long-term care centers, she said. State lawmakers have introduced legislation that would place limitations on litigation filed against senior living facilities.
“Even when lawsuits are settled out of court, the sheer volume of them drains financial resources as this report points out,” Knapp said. “It shows how Florida’s ‘sue-to-settle’ climate is hampering efforts to provide the best care that our residents need and deserve.”
In Florida, the average loss costs per occupied senior facility unit rose 58% between 2011 and 2020, the WTW study found, while the claims frequency at the facilities over the same time period increased 79%.
“Ultimately, should double-digit (legal claims) losses continue unabated, it could raise questions about the financial viability of senior living communities in some areas of the country,” the report says.