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Is California the Canary in the Coal Mine? While it has always been tough hiring and retaining staff in LTC facilities, it will undoubtedly continue to be a challenging time. Entry level staff currently have other, more lucrative hiring opportunities, e.g., with fast food starting at $20.00 per hour in CA, and with none of the same caregiving stressors that LTC employees face. Combine this with the potential of CA Senate Bill 525, signed by the Governor in October 2023, which may increase the minimum wage for health care workers to $25 per hour in the coming years, but would also require higher staffing ratios if triggered, this may boost applicants but it will certainly strain facility budgets. However, with a strategic hiring process and a thoughtful employee retention program, you will be able to hire excellent staff and keep them for many years to come. You can read the full article on our client's site, CCRRG.

As you may know, Magnolia LTC works closely with CCRRG to manage its daily operations, including risk management for its clients. And, CCRRG recently published an article regarding the importance of Magnolia LTC site visits and how they can help provide LTC facilities not only with better tailored coverage, but also opportunities to save them money and reduce claims, all while providing their residents with better care.

By collecting additional reserve money, a Claims-Made carrier will charge an annual premium for all claims anticipated to be reported. When a Member reports a claim, the carrier may now use previously collected funds to resolve it. When the carrier assumes liability for a claim, the Member can then depart to secure retroactive coverage from a different carrier. The Claims-Paid alternative differs considerably. The Continuing Care Risk Retention Group, Inc. (CCRRG) does not collect reserves, so Members pay less annually than they would with a Claims-Made carrier. In exchange for lower premiums, Members must agree to one of three options. They must purchase coverage for an extended reporting period (ERP), remain with CCRRG until their pending claims are resolved, or assume responsibility for the outstanding balance of their claims at the time they choose to terminate their membership. CCRRG agrees to "Pay" amounts within policy limits for "Damages" related to "Property Damage" or "Bodily Injury" where this insurance is applicable. This is done on behalf of a "Member" who takes on a legally binding obligation to "Pay" the amount determined by an arbitrator, court, or any other administrative tribunal while they were a CCRRG "Member." The company will "Pay" for a "Claim" that is reported for and "Occurs" during the "Policy Period":  when it is a legally binding obligation for the "Member" while the "Claim" is declared during the "Policy Period; and while the "Member" continues to be a "Member" when legally obligated to "Pay" the "Claim." The patent-pending Claims-Paid PL/GL form has been granted to Magnolia LTC Management Services and CCRRG for exclusive use. This was granted by the Cooperative of American Physicians (CAP) for institutional long-term care facilities anywhere in the U.S. Don’t Pay for Claims That May Never Be Reported CCRRG's Claims-Paid policy is a unique alternative to CCRRG's Claims-Made policy form. Under the Claims-Paid policy, Members will enjoy premium savings without giving up the competitive, reliable, and stable coverage they receive under the Claims-Made policy. How CCRRG Does It Traditional insurance companies typically offer pricing formulas that add estimates of possible future losses, increasing company expenses. CCRRG Members/Insureds who opt for the Claims-Paid policy never have to pay for reserves for incidents that might not result in a claim. The CCRRG Claims-Paid premium is determined by the costs of running CCRRG, along with projected costs of present and anticipated claims per program year. If a Member/Insured opts to leave the Claims-Paid program with one or multiple open claims, they can either take their claim(s) with them or purchase an ERP endorsement. If a Member/Insured chooses not to purchase extra coverage for an ERP upon leaving the program, CCRRG will support defense costs on open Claims-Paid claim(s) after the final day of coverage for 30 days. This provides the former Member/Insured an adequate amount of time to acquire their own defense counsel.