In 2001, almost 90 percent of all nursing homes were cited by a regulatory agency for a deficiency; and a deficiency translates, of course, into potential (or actual) nursing home abuse. With the expected rise in nursing home residencies (as a result of the "baby boomer" generation) in the future, it would seem that without serious reform/incentives, nursing home abuse will continue to rise. When profits are sufficiently large, some corporations who run these nursing homes become willing to allow a pattern of nursing home abuse in their nursing homes. Punitive damges should be an effective way to deter this kind of conduct; but in North Carolina, punitive damages are currently capped at $250,000.00, or three times compensatory damages, whichever is greater. In cases of substantial harm resulting form nursing home abuse, the punitive damages can be significant. But in many cases, the "cost" of abuse to nursing homes is, unfortunately, worth it to some nursing home operators.
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