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Who Wins (or Loses) at Senior Living Liability? Skilled Nursing vs. Assisted Living

Updated: Nov 12, 2018

Conventional wisdom predicts that when comparing similarly sized assisted living centers to nursing homes (skilled nursing facilities), institutions that care for sicker residents would be more at risk for adverse events and would thus have higher liability costs. This should mean a clear victory for Nursing Homes, right? Well, not exactly.


Assisted living operators have good reason to lose some sleep over the results of a study revealing aging services insurance claims. That’s because assisted living claims are paying out more than skilled nursing claims, on average — and there’s a high probability the trend is only going to get worse, they noted. Although claims against skilled nursing operators are more numerous, assisted living facilities paid more per closed claim, on average, from 2011 to 2015. The gap was almost $9,000 — $221,496 to $212,766, according to CNA’s “Aging Services 2016 Claim Report.”


We are keeping a close eye on the other reliable risk resource for senior living, The AON General and Professional Liability Benchmark for Long Term Care Providers, for more clues but their latest executive summary does not bear good news either. According to their 2018 Report general and professional liability claims costs for long-term care providers are projected to increase by 6% next year. AON analyzed data from 13 states and estimates ultimate loss rates, or the cost of liability on a per-bed basis. The projected national 2019 loss rate is estimated to be $2,410, meaning that facilities with 100 occupied beds can expect approximately $241,000 in liability expenses in 2019.


Perhaps the only silver lining is that, in this rare care, technology is actually proven to help. Care validation products like SafeSense (and others in the pipeline that we can't publicly discuss yet due to the patent filing powers that be) from CareValidate are leveling the liability playing field for assisted living and skilled nursing facilities. Our plug-and-play camera-less sensors are known to reduce falls, ulcers, assault-abuse-neglect, failure-to-monitor, and elopement claims irrespective of the type of institution or their size. How - you may ask? The simple answer is DATA. SafeSense and other unobtrusive camera-less sensors convert each resident room into a data generation machine. Patented pattern recognition algorithms then generate early warning alerts and notifications to improve the quality of care in each room from the continuously captured data. As if this wasn't enough, this winning strategy fits effortlessly into a facility's existing or new Quality Assurance and Performance Improvement (QAPI) programs.



TLDR: Whether you insure or operate, nursing homes or assisted living facilities, Contact Us today to receive our FREE white paper "How to Win (or Lose) at Senior Living Liability with Camera-less Sensors."