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Workers' comp lawsuit yields hefty settlement

LTC Liability Monitor, January 29, 2004

A jury awarded this month $12 million in punitive damages and $60,000 in compensatory damages to a former nursing home employee after the inappropriate denial of a workers' compensation claim, reported the Associated Press (AP).

Three insurance companies serving as claims adjusters or insurers for the facility's parent company, Beverly Enterprises, denied the employee's $8,000 claim for medical bills, lost time, and physical impairment due to carpal tunnel syndrome, citing lack of proof that the problems were a result of her work.

The case also focused on one insurance company's incentive program offering claims workers an end-of-year bonus if they reduced overall payouts from one year to the next. Beverly Enterprises was initially named in the suit, but was dismissed January 8 after an out-of-court settlement, reported the AP.

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