A large portion of increased Medicaid funding to long-term-care facilities has gone toward defending and settling liability lawsuits, according to a study sponsored by the American Health Care Association, which represents nursing homes. The study, by AON Risk Consultants, Chicago, found that nursing homes received an average annual reimbursement increase of $30.69 per resident per day from 1995 to 2002. About $6.38 of the per-resident increase, or 21%, went toward resolving malpractice claims, adding up to $4.8 billion over the seven-year period. The average claim increased to almost $200,000 in 2002, from $63,500 in 1991. -- by Tony Fong
Medicaid increases going to liability suits: study
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