ElderWeb

Nursing home providers in Florida say the state's long term care system is near collapse because of runaway lawsuits, due to a loophole that currently gives trial lawyers incentives to sue nursing homes under a Florida law that applies only to long term care facilities. They say that lawsuits have resulted in sharply higher liability insurance rates which could force nursing homes across the state to close their doors. The Florida Association of Homes for the Aging said a survey of 23 of its members reported average premium increases of 177% this year, with some increases topping 1,000%.

The Florida Health Care Association and the Florida Association of Homes for the Aged called on state lawmakers to change the law under which nursing homes may be sued. Currently 20% of Florida's 82,000 nursing home beds are operating under Chapter 11 bankruptcy protection and provider spokesmen say that nursing homes in the state are three times as likely to be sued as nursing homes in other parts of the nation. Medicare cutbacks and low Medicaid reimbursement rates have contributed to significant financial problems for the industry, but an increase in liability lawsuits is bringing the crisis to a head.

The president of the Florida Medical Directors Association urged legislators to seriously consider proposals to make changes to the law, and said that physicians increasingly are trying to avoid treating the elderly in nursing homes for fear of becoming entangled in litigation.

Trial lawyers bringing lawsuits against the nursing homes say that legislation should not be changed to protect the owners against the results of their own mismanagement, and that the current law protects residents against abuse and neglect, and also ensures that family members may sue on behalf of their relatives.

SB 1222, introduced by Senator John McKay, was established to set up a long-term care study commission to report on this issue to the Legislature in January. House leaders are also considering introducing legislation.