This morning, HB 869 by Rep. Bill Hager (R-89) passed favorably out of the House Civil Justice Subcommittee. This bill strikes a balance to ensure those who need redress have access to the courts while ensuring that those not directly involved in providing care – investors, creditors and other individuals who have no role in the alleged act – are not included in nursing home claims. Corporate law does not allow this to occur in other business litigation; doing so raises the cost of defending a suit, artificially raises the settlement value of the claim and discourages much-needed investment in senior facilities.
“FHCA is thankful to the committee for advancing this bill. This is a good first step toward relieving the courts from frivolous lawsuits, as rising liability costs add to the chronic funding challenges already facing the long term care sector and drive up costs for residents, facilities and ultimately, taxpayers.” said Emmett Reed, FHCA Executive Director.