Tennessee's limitless nursing home lawsuits and resulting record verdicts have driven the liability cost per bed to the second highest in the nation, according to Reuters.

"The problem is that our laws right now allow the filing of limitless lawsuits claiming tens of millions of dollars in damages," said Steve Flatt, senior vice president of development for National Healthcare Corp. "The result is that the big-money personal injury lawyers from Texas and Florida have been arriving regularly to pelt our courts with lawsuits."

State legislators have introduced a bill to bring the liability costs more in line with comparable cases. Advocates for the elderly spoke to a special Tennessee committee studying the effects of litigation, and said that better care prevents lawsuits against the nursing home industry.

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