Skilled Healthcare Announces Nursing Home Lawsuit Settlement—After Recent $677 M Verdict

In a previous blog, our nursing home negligence attorneys in Baltimore, Maryland discussed a recent lawsuit verdict, where a jury handed Skilled Healthcare Group Inc., a nursing home company based in California, a $677 million verdict over nursing home negligence due to understaffing in the homes.

According to Bloomberg news, Skilled Healthcare announced a $50 million lawsuit settlement today, in an effort to avoid the $677 million verdict in damages—what Bloomberg calls the largest award announced in the U.S. this year, by the Humboldt County jury in July.

In the July verdict, Skilled Healthcare was found to be negligent for violating state regulations by failing to properly staff the number of nurses required for duty in the 22 facilities throughout California.

According to California State law, nursing homes are required to provide 3.2 hours of direct skilled nursing care per day, per patient. The federal recommendation standard for nursing requirements is reportedly 4.1 nursing hours per patient. As part of the settlement, the facilities operating the nursing homes will be responsible for providing the legally mandated nurse staffing, and complying with federal and state regulations on staffing.

The $677 million verdict included $619 million for violations of health code and $58 million in restitution in the nursing home negligence class-action lawsuit. After the jury made the verdict in July, the stock for Skilled Healthcare plunged 76 percent.

The $50 million settlement announced today by Skilled Healthcare will still reportedly need to be approved by a judge.

In Baltimore, Maryland, Lebowitz and Mzhen, LLC represent victims of nursing home abuse and negligence. Contact us today at 1-800-654-1949.

Skilled Healthcare Jumps After Settling Nursing Home Lawsuit, Bloomberg Businessweek, September 8, 2010
Huge Verdict Shakes up Nursing Home Industry, The Associated Press, August 28, 2010

Related Web Resources:

Centers for Medicare and Medicaid Services, CMS

Maryland Department of Health and Mental Hygiene, DHMH

Maryland Department of Aging

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