Nursing Home Evolving

Nursing Homes Need to Evolve

Nursing homes have changed a lot over the past few decades, evolving slowly and improving on past mistakes. However, there is still work to do, and plenty that nursing homes can do to improve.

President Biden caught thousands of long-term care facilities by surprise when he called for minimum staffing requirements for nursing homes all over the country. Furthermore, he neglected to involve Congress in his decision. 

The current understaffing problem of nursing homes is a big issue that has placed a tremendous strain on nursing home insurance. Also, the Labor Department has reported that nursing homes have been down over 240,000 employees since the COVID-19 pandemic began. Most nursing facilities are grappling with challenges posed by unfilled positions. 

Unfortunately, the federal government’s staffing requirements under the 1987 Nursing Home Reform Act are somewhat vague. With Biden’s ruling, nursing home facilities that don’t meet staff requirements won’t be able to operate and would ultimately be forced to close down. 

The nursing home insurance industry is facing a potential crisis is an understatement. For insurance agents, the burning question is how to mitigate the risks posed by this new ruling on nursing home clients. Subsequently, here are some strategies that could help ease the transition:

Provide Access to Improved Employee Screening

Perhaps the best thing insurance agents can do to assist their nursing home clientele is to provide access to improved employee screening. The right insurance policy can help you. 

Effective employee screening helps determine whether the people hired to work with residents are qualified for such a stressful job. Consequently, if the employees in question fail to perform their duties, the facility risks potential lawsuits and compensation payouts.

Solving this issue could involve having nursing home insurance covering RTW SelectRite Pre-hire Screening. Next, you can minimize the legal consequences of hiring the wrong person by offering this service to your clients.

Pre-employment screening can help provide nursing homes with the best employees. However, it doesn’t ensure that they will be effective at their jobs.

It is necessary to encourage nursing homes to invest in training programs. In-house and off-site training courses can guarantee that nurses, doctors, and other medical practitioners can effectively deliver caregiving services.  

Reduce Employee Turnover

The turnover rate of nursing home care facilities is higher than in any other industry in the country. If you want your clients to meet the new federal requirements, the best way to do it is by reducing your employee turnover rates.

High employee turnover is one of the most pressing problems in the long-term care industry. It can leave nursing homes severely understaffed and unable to fill critical positions. 

Reducing turnovers leads to a better quality of life for residents in the facility. It also saves the nursing home the cost of hiring and training new employees.

Review Insurance Policies

As the insurance industry rules continue to change, it is essential to keep a close eye on your client’s current policies. The best way to protect your clients from risks inherent in the industry is to encourage them to update their insurance policies. Additionally, you should inform them about the benefits of investing in comprehensive plans. Long-term care facilities can cover themselves from threats with the right policies. 

Prioritize Worker’s Compensation Plan

Having a worker’s compensation plan is crucial for your nursing home clients. It can protect them from any liability that may arise from an employee’s injuries. Suppose a person could prove that the injuries happened due to work. In that case, a worker’s compensation insurance plan can cover the necessary medical expenses and other expenses, thereby preventing claims from financially crippling the business.

Easily Identify Riskier Claims

The list of potential risks to the nursing home industry is substantial. But it isn’t enough to be aware of them.

High-risk claims can significantly affect a nursing home’s finances because it requires them to handle the reimbursement of medical expenses. Also, it puts nursing homes on the hook for compensation payouts, among other costs. Insurance agents must undertake the task of identifying high-risk claims and mitigating their legal consequences.

By closely analyzing high-risk claims, you can provide your clients with the information they need to prepare themselves for the future.

Key Takeaway

Federal government involvement in the long-term care industry is understandably controversial. But this shouldn’t stop insurance agents from performing their duty to help prepare clients for any eventuality by providing them with appropriate insurance coverage.

About Caitlin Morgan

Caitlin Morgan specializes in insuring assisted living facilities and nursing homes and can assist you in providing insurance and risk management services for this niche market. Give us a call to learn more about our programs at (877) 226-1027.