1. Risk Management and Long Term Care
David Friend
November 9, 2002
CAS Annual Meeting
Boston, MA

2. Challenges in the Long Term Care Industry
Reimbursement is controlled by Medicare/Medicaid
Insurance Premium increases cannot be passed on to the customer
Obtaining proper insurance for reasonable price
Runaway litigation cost
Proper staffing for Risk Management Department
Turnover effects quality of care

3. Senior Management Support
Senior Management sets the tone for the Risk Management Goals and Objectives
Risk Manager is responsible to keep Senior Management Appraised
Corporate Statement on Loss Prevention
Meet with Senior Management monthly/quarterly whenever possible

4. Department Structure ( in the real world!)
The History of LTC’s is to have minimal staff for the Risk Management Department
Loss Prevention Director (2-3)
Claim Manager (1-2)
Risk Analyst

5. Attacking the Problem Focus must be on Prevention
Mitigate the Exposure
Become a Salesmen/Tell the story of the company.
Have Senior Management at the carrier road show!
Be creative: Self Insurance, Captives, swing plans etc.

6. Will it get better? Consolidated Lobby effort by the CEO’s Tort Reform
Some states have cap’s on Punitive Damages
States are beginning to put limits on statue of limitations
It Just has to!