Insurance may be too little in case of nursing home fire

? The corporate owner of a nursing home where a fire killed eight residents has self-funded liability insurance — coverage that the company previously warned may be inadequate in an emergency.

No lawsuits have been filed in Thursday’s fire at the four-story NHC HealthCare Center, a building with 116 residents and no sprinklers in the living areas. Sixteen residents remained in critical condition Saturday, and 41 others were being treated at Nashville hospitals.

The home’s owner, National HealthCare Corp. of Murfreesboro, said it decided to fund its liability insurance on its own because it received only two bids to provide coverage in 2002. It has paid the quoted premium into a fund it administers, but it said in a document filed with the Securities and Exchange Commission that the fund could prove inadequate.

“It is possible that claims against us could exceed our coverage limits and our reserves, which would have a material adverse effect on our financial position,” the company said in a 10-Q statement for the quarter that ended March 31.

National HealthCare runs 82 nursing homes with about 10,500 total beds in 12 states, as well as home care programs and independent- and assisted-living centers.

It has made multimillion-dollar payouts in court cases involving its facilities, but it has posted profits — $16.4 million last year and $13.2 million in 2001.

National HealthCare has nursing homes in Alabama, Georgia, Kansas, Kentucky, Indiana, New Hampshire, Massachusetts, Missouri, South Carolina, Tennessee, Virginia and Washington state.