Nursing homes; require to purchase and maintain a minimum amount of liability insurance.
Impact
The implementation of HB 741 is anticipated to enhance the protection of residents living in nursing homes by ensuring that facilities are financially equipped to handle claims arising from malpractice or negligence. This law will necessitate that nursing home operators allocate sufficient resources for insurance, potentially impacting the overall operational costs for these institutions. Furthermore, failing to comply may result in the suspension or revocation of licenses, which serves as a strong incentive for adherence to this requirement.
Summary
House Bill 741 mandates that all owners or operators of nursing homes in Mississippi must purchase and maintain a minimum liability insurance coverage of at least One Million Dollars ($1,000,000.00). This coverage is intended to protect residents against occurrences of negligence. The bill defines 'nursing homes' broadly to include various types of facilities that provide care and supervision to the elderly, infirm, or disabled individuals. Additionally, it stipulates that proof of such insurance must be presented to the State Department of Health for licensing purposes.
Contention
While the bill aims to improve the safety and security of nursing home residents, there may be concerns regarding the financial implications it places on care providers. Some opponents might argue that the requirement for high levels of liability insurance could create barriers for new entrants to the market or could disproportionately affect smaller facilities. Furthermore, the stipulation for clear disclosure to residents regarding insurance coverage may raise discussions about the transparency of care services and the overall accountability of nursing homes.
Regulatory changes
To implement HB 741, amendments to Section 43-11-7 and Section 43-11-9 of the Mississippi Code will be necessary. These amendments will require adjustments in existing licensing and regulatory frameworks, ensuring that nursing homes demonstrate compliance with both insurance procurement and operational safety standards. The expectation of annual reports detailing compliance with insurance requirements could also streamline oversight by the State Department of Health.
An Act Concerning The Maintenance Of Professional Liability Insurance By Nursing Homes, Home Health Care Agencies And Homemaker-home Health Aide Agencies.
An Act Concerning Responsible Party Agreements And The Maintenance Of Professional Liability Insurance By Nursing Homes, Home Health Care Agencies And Homemaker-home Health Aide Agencies.