No, not at all. Just diplomatically addressing somthing that may or may nit be correct.
This hypothetical merely exemplifies that perhaps a "permanent" injury is not necessarily mandated to have a claim for a compensable injury. There may be a bit of mixing apples and oranges here. For instance, some no fault systems for motor vehicle accidents do require a permanent injury. Florida's no fault system for MVAs does require an opinion of a doctor or chiro to opine that the victim sustained an injury that is permanent in nature. Permanent injury under the no fault system can be diagnosed if symptoms persist for about 6 months after the accident.
The issue regarding med mal may be a bit different. The issue with med mal is that if the person is not dead or does not huge damages, the claims will likely not be pursued as the costs to work up the case could easily exceed the potential value of the case. Nursing home cases are a completely different animal. Verdicts such as Rankin Mississippi for 7.8 million for a single stage III decubitus ulcer that was resolved by the same facility. Verdicts in nursing home case are more about neglect than actual damages or pecuniary value.