Nursing Home Sues Insurer After “Killer Nurse” Claims Hit Coverage Limits

A Pennsylvania nursing home is suing its insurance provider, arguing that the company is refusing to fully cover millions in claims related to one of the most disturbing nursing scandals in recent memory.

The nursing home employed a former nurse who pleaded guilty to murdering three people, with plans to kill 19 more. However, because the nursing home's insurance provider limited its coverage by as much as $2.5 million, it's now unable to reach settlements with at least six of the victims in the case. 

Sunnyview Nursing and Rehabilitation Center in Butler, PA, says its insurer, Columbia Casualty Company (a subsidiary of CFA Financial Corp.), is wrongfully limiting coverage to $1.5 million total, well below the $2.5 million Sunnyview believes it is entitled to. 

The "Killer Nurse" Crimes

The dispute stems from lawsuits filed by the estates of six patients murdered or harmed by former nurse Heather Pressdee, who in 2024 pleaded guilty to three counts of first-degree murder and 19 counts of attempted homicide.

She admitted to killing patients by overdosing them on insulin, yet remained undetected, even working at 11 different nursing homes throughout her five years of nursing. Early on in her career, she was even nicknamed "the killer nurse" by colleagues who noticed that patients seemed to fare poorly under her care.

The "killer nurse" also reportedly was overheard saying that she was concerned about some of her patients' quality of life and hoped they would "pass away." 

Pressdee is now serving a life sentence without parole.

The Legal Battle

Because Pressdee's employer is working with the victims to settle lawsuits filed on their behalf, the money is supposed to come from the nursing home's insurance company. 

However, the catch is that the insurance company is claiming a legal loophole that the lawsuits are a direct result of "supervisory failures" and "non-medical administrative actions" and therefore not eligible for the full payout sums. 

That distinction matters because under Pennsylvania’s Medical Care Availability and Reduction of Error Act (MCARE), certain malpractice claims are capped at lower amounts. 

“Allegations that involve hiring, training, retention, and supervision of employees including their actions that are performed outside of the furnishing of medical services are not covered under the Act,” Sunnyview attorneys claimed in their lawsuit against the US District Court for the Western District of Pennsylvania.

According to the lawsuit, some of the lawsuits against Sunnyview include:

• Alleged negligent supervision issues
• Alleged systemic neglect that led to Pressdee’s hiring
• Alleged negligent hiring practices

Their official lawsuit notes that because none of the lawsuits focused on the medical skills and training of the "killer nurse," the lower coverage limits of the MCARE Act should not apply.  

It's now up to the courts to decide how the MCARE Act should be interpreted and, thus, how much the insurance provider is required to pay out to victims. 

 

Letter of the Law 

The facility insists the cases fall outside that law’s limits since they don’t involve professional medical judgment but systemic oversight lapses.

Columbia Casualty, however, contends that MCARE still applies, meaning it must pay no more than $500,000 per claim and $1.5 million in total. 

Additionally, the insurance company is trying to bundle the claims into one, instead of treating them separately, which could further limit how much they have to pay out. 

The outcome could influence how liability insurers define nurse-related oversight or administrative failures in future cases, with major implications for long-term care operators and nursing professionals alike.

Why This Case Matters for Nurses

While the Sunnyview lawsuit focuses on insurance coverage, it highlights deeper issues around nurse supervision, accountability, and institutional safety culture. Pressdee worked at 11 nursing homes in five years, accumulating disciplinary actions related to insulin misuse. 

Colleagues reportedly raised red flags that went unheeded, an oversight now echoing across Pennsylvania’s healthcare network.

For nurses, the case underscores the need to:

• Speak up persistently when patient safety is at risk, even if management seems unresponsive.
• Document and escalate incidents of unsafe practice through proper channels.
• Advocate for better hiring oversight and inter-facility reporting to prevent dangerous job-hopping by problematic staff.

🤔Nurses, what are your thoughts on this? Share your thoughts below.