Nursing Home Insurer Admits Arbitration Agreements Financially Benefit Nursing Homes By Reducing Claims

HealthCap Risk Management & Insurance (“HealthCap“), which is “an insurer solely dedicated to senior care communities,” posted a video discussing arbitration agreements in nursing home admission documents, seemingly unaware that it was admitting that forced arbitration of residents’ nursing home claims impinges the ability of residents to obtain fair compensation for their injuries suffered as a result of nursing home negligence, nursing home neglect, nursing home abuse, and other nursing home injury claims.

The caption of the video states: “HealthCap CEO Peter Feeney and staff attorney Christina Nechiporchik discuss why long-term care communities should consider arbitration agreements with their residents. The number one reason? The agreement helps reduce claims.” The staff attorney states in the video that nursing home arbitration agreements “helps reduce claims and then provides some certainty to all the providers who implement them … it decreases the chance of higher verdicts.”


Any barrier that decreases legitimate claims for harm caused by nursing homes is a red flag: payments made by nursing homes for the injuries they unnecessarily inflict on residents are an effective incentive for promoting proper and timely nursing home care. If nursing homes fear that they will be held fully accountable for unnecessary harm they cause to their residents, they will be more likely to insure that their staff are properly trained, that there is proper staffing levels at all times based on the needs of their residents, and that any inappropriate or failure of nursing home care is properly and timely addressed and remedied. On the other hand, if nursing homes are able to insulate themselves from taking full responsibility for the inadequate or negligent care they provided their residents, they are disincentivized in providing the appropriate level of care and services they promised residents when they were admitted to their facilities.

The American Arbitration Association (AAA) and JAMS, the two most dominant consumer arbitration providers, recorded only approximately 30,000 consumer arbitrations over five years (2014-2018), an average of just 6,000 per year, despite over 800 million arbitration provisions that are in existence in the United States. Only 1,909 consumers won a monetary award over the five-year period. Only 6.3% of cases arbitrated at either AAA or JAMS resulted in consumers winning a monetary award over the five years. Over five years, consumers pursuing a nursing home claim with either AAA or JAMS won a monetary award in only four cases. “Americans are more likely to be struck by lightning than win in forced arbitration.”


If you or a loved one suffered injuries (or worse) while a resident of a nursing home in the United States due to nursing home neglect, nursing home negligence, nursing home abuse, nursing home under-staffing, or the nursing home failing to properly care for a vulnerable adult, you should promptly find a nursing home claim lawyer in your state who may investigate your nursing home claim for you and file a nursing home claim on your behalf or behalf of your loved one, if appropriate.

Click here to visit our website to be connected with medical malpractice attorneys (nursing home claim attorneys) in your U.S. state who may assist you with your nursing home claim, or call us toll-free in the United States at 800-295-3959.

Turn to us when you don’t know where to turn.

This entry was posted on Wednesday, December 4th, 2019 at 5:25 am. Both comments and pings are currently closed.


Easy Free Consultation

Fill out the form below for a free consultation or contact us directly at 800.295.3959.
  • Please enter the correct answer to this math problem.
  • This field is for validation purposes and should be left unchanged.

    Easy Free Consultation

    Fill out the form below for a free consultation or contact us directly at 800.295.3959