Monday, October 12, 2026
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Why Healthcare Organizations Are Rethinking Risk Management After Costly Settlements

Curious why hospitals are starting to scrutinize risk management?

Settlements are growing.  Way too much.  And often the root problem causing them is one of the most simple (and easily preventable) issues…

Failure to monitor IV lines.

It sounds small. It isn’t. One missed IV check can lead to:

  • Burns and deep tissue damage
  • Extra surgery and skin grafts
  • Lawsuits that cost millions

Here’s the thing…

Most of these cases could have been stopped with a few minutes of attention.

Inside This Guide:

  1. What Is Failure To Monitor IV?
  2. Why Are Settlements Getting So Expensive?
  3. Why Old Risk Plans Don’t Work Anymore
  4. 5x Ways Hospitals Are Rethinking Risk Management

What Is Failure To Monitor IV?

An IV (short for intravenous) line delivers fluids and medication directly into someone’s vein. It’s one of the most frequently occurring procedures in hospitals everywhere.

Occasionally the catheter moves or the vein ruptures. The fluid leaks into the surrounding tissue. This is referred to as infiltration. If the medication is caustic (as with some chemotherapy drugs), this is referred to as extravasation.

It occurs more frequently than many realize.  Infiltration averages 23.9% incidence.  It is also the leading cause of IV catheter failure.

Missed IV site monitoring occurs when medical professionals do not check the intravenous line frequently enough to identify the leak immediately. Hours pass before swelling, pain, and clammy tight skin are discovered as the IV continues to pour fluid into the patient. When someone finally takes notice of the problem it’s too late. That’s why many injured patients consult with an IV infiltration lawyer in Florida when an unnoticed IV inspection results in a severe burn or injury.

Pretty scary, right?

Why Are Settlements Getting So Expensive?

Healthcare organizations are coming under renewed pressure. Jury awards have increased significantly in recent years.

The average payout for the top 50 malpractice verdicts was $56 million in 2024. The average was $32 million in 2022.

Think about that for a second…

That’s a massive increase in only 24 months. Verdicts drive settlements. When verdicts increase, settlements increase as well. Think about it… insurers and hospitals see those numbers and realize it’s better to settle than to roll the dice in court.

Medical costs are affecting insurance payments as well. Insurance premiums rose in 46 out of the 50 states. Basically that means every hospital is paying more just for insurance.

Bigger verdicts = Bigger settlements = Bigger premiums.

It’s vicious circle. Leaders are being forced to ask one tough question: where is the money being lost?

Why Old Risk Plans Don’t Work Anymore

Incident reporting has been handled by hospitals like a paperwork exercise for decades. Complete the incident report. File it. Proceed.

That doesn’t cut it anymore.

The issue is legacy plans respond to incidents after they occur. They don’t prevent them. With the average malpractice payout now at approximately $514,000 in 2025, there is no such thing as a “minor” error.

Here’s what leaders are finding when they dig into their claims:

  • Nurses are stretched too thin to check IV sites on time
  • Charting is spotty, so nobody can prove the checks happened
  • Warning signs get passed between shifts with no follow-up

Sound familiar?

In court, if it isn’t on the chart, it didn’t happen. That is how jurors think. Therefore, missed opportunities to document IVs are difficult defenses for hospitals to argue when it comes to failure to monitor claims.

5x Ways Hospitals Are Rethinking Risk Management

OK, enough doom and gloom. What ARE forward-thinking healthcare organizations doing about it?  Here are some of the initiatives with the most impact these days.

Set Clear IV Check Schedules

One solution is easy. Hospitals establish clear policies dictating frequency of IV site monitoring.

Frequent assessments are performed on high risk patients (infants, elderly, and anyone receiving aggressive medications). Some units perform hourly assessments. This policy is written, taught, and monitored.

No guessing. No putting it off until later.

Use Monitoring Technology

Nurses can’t be in every room at once. That’s where tech comes in.

Certain hospitals are using tiny skin surface sensors placed near the IV site. They detect tissue abnormalities and warn staff before the leak develops into severe damage.

It’s not a replacement for a nurse’s eyes. But it’s a great backup.

Fix Staffing Gaps

Here’s the hard truth…

You can have the best policy at your hospital in the world. If you have one nurse that is overloaded with patients though, checks will be missed.

That’s why many hospitals are re-examining nurse-to-patient ratios. They are also creating IV teams. These are nurses who specialize in placing and managing IV lines exclusively.

Train Staff To Spot Early Warning Signs

Training isn’t a one-time thing. It needs to happen again and again.

Good training teaches staff to look for:

  • Swelling or puffiness near the site
  • Skin that feels cool or tight
  • Pain, burning or leaking
  • An IV pump that keeps alarming

The sooner your nurse identifies these, the smaller the problem. Clamp the drip, elevate the extremity and page the physician. Truly…that simple.

Improve Charting And Handoffs

Remember… if it isn’t charted, it didn’t happen.

To improve timeliness of charting, hospitals are using digital checklist reminders when an IV assessment is required. Hospitals are standardizing shift handoffs so the incoming nurse will know what to expect.

It safeguards the patient.  It also provides the hospital with documentation if a claim ever arises.

The Real Cost Of Doing Nothing

Some leaders still see these changes as too expensive. But look at the math.

One sensor. One training session. One additional IV nurse costs a fraction of what ONE lawsuit will cost you. One bad outcome can bankrupt a unit for years.

And that’s just Dollars. Each missed IV assessment represents an actual human being with an actual injury. Patients can lose the need for skin grafts. Some patients lose the full function of their hand. Children are at an even greater risk because they don’t always know how to tell someone that it hurts.

Prevention is always cheaper than a settlement.

The Bottom Line On IV Safety

Why are healthcare organisations changing their approach to risk management? Liability costs of getting it wrong have never been greater. Verdicts are increasing, premiums are soaring, and neglecting to monitor IV lines is one of the easiest ways to prevent that from happening.

To quickly recap:

  • Set clear IV check schedules
  • Add monitoring tech as a backup
  • Fix staffing gaps
  • Train staff on warning signs
  • Chart every single check

One step at a time. Start small. Then expand. Patients (& budgets) will thank you.

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B2BNN Staff
B2BNN Staffhttps://www.b2bnn.com
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