Report: Nurse Malpractice Claim Costs Rose 12.5%

Nurse malpractice claim costs have risen 12.5% to $236,749 across the U.S. in the past few years, a new report shows.

The Nurse Professional Liability Claim Report: 5th Edition also shows cases of $750,000 or more accounted for 7.9% of closed claims.

The report, from Nurses Service Organization and CNA Financial Corp., covers 466 closed claims involving RNs, LPNs/LVNs, nursing students or healthcare businesses, closed Jan. 1, 2020, through Dec. 31, 2024, each with a paid indemnity of $10,000 or more. Amounts reflect CNA payments only. Payments by co-defendants or other insurers are excluded.

The report also notes that exceptionally high jury awards are rising across the nation, contributing to higher severity.

Rising home health claims were a notable trend called out in the report. Home healthcare now averages $301,031 per claim, a 39.3% increase since 2020, representing 21.7% of all nurse malpractice claims. That was the highest share by specialty.

Obstetrics had the highest average total incurred loss at $543,305. Other areas were: surgical ($332,847) up from $145,118); emergency or urgent care ($296,280, up from $174,866; correctional health ($270,420, up from $219,924); home health ($301,031, up from $216,051); aesthetics/cosmetics ($131,148, up from $104,132).

Specialties with the most claims were: home health, adult medical and gerontology (aging-services) together accounted for roughly 45% of closed claims; surgical 9.4%; pediatrics 6.7%; aesthetics/cosmetics 4.5%.

Other finds in the report include:

Nurse leaders and professional liability. Direct-care nurses represent 86.1% of closed claims with an average total incurred of $249,094. Nurse leaders represent 13.9% with $160,595 average. By leader’s positions: director of nursing 44.6% ($103,870), healthcare organizations owner 26.2% ($177,552), charge nurse 16.9% ($266,637), nurse manager 12.3% ($184,380) Top leader allegations include failure or delay reporting to a regulator 30.8% ($83,037), failure to establish or follow policies 26.2% ($210,567) and inappropriate supervision 24.6% ($200,132).
Locations of care. Patient’s home 21.5% of closed claims with $277,503 average total incurred (up from $210,325). Aging-services facilities 15.0% with $179,428 (up from $141,185). Correctional facilities 6.2% (up from 4.4%) with $262,272 (up from $219,924). Emergency or urgent care 6.0% (down from 9.9%) with $298,115 (up from $175,605)
License protection. Average payment per license defense matter increased 18.3%, from $5,330 to $6,304; professional conduct is the most common closed matter at 38.0%.
LPN/LVN differences. LPN/LVN claims are 8.6% of cases, with an average total incurred $293,507, which is 36.2% higher than for RNs.