Increased litigation has been a major factor contributing to the recent instability in the liability insurance market by nursing homes. In the late 1990’s victims in the nursing home market rose dramatically. There were significant increases in both the frequency of liability claims and in the size of damages awarded, primarily through negotiated settlements.

Aon Risk Consultants, conducted a series of studies about primary source of information of litigation trends for the American Health Care Association (AHCA), a nursing home trade association representing primarily for-profit nursing homes, including the large national chains. Over the five years that the studies were conducted, between 60 and 108 separate nursing home operators, provided claims data.