Aon/AHCA Report: Liability Costs Expected to Rise for Long Term Care Facilities

The cost of liability continues to increase for the long term care profession, according to the findings of 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 overall national long term care loss rate is expected to grow by 5 percent annually, with claim frequency driving the increase at an expected 3 percent growth rate.

The 13th published edition of the Aon/AHCA 2015 Long Term Care General Liability and Professional Liability Actuarial Analysis provides estimates of loss rates, or the cost of liability to skilled nursing care centers on a per-bed basis. The projected national 2016 loss rate, which is a combination of claim severity and frequency, is expected to increase from $2,030 to $2,150 per occupied bed. This means that a nursing center with 100 occupied beds can expect approximately $215,000 in liability expenses in 2016.  You can read the full press release here.