NHS faces compensation time bomb as clinical negligence liabilities almost double says MDU
The NHS Litigation Authority, the body which pays compensation on behalf of English hospitals, has reported its provisions for hospital clinical negligence claims have almost doubled since last year to £56.4 billion, reaching record levels.
The Medical Defence Union (MDU), the UK's leading medical defence organisation, said the astonishing figure, published yesterday in the NHSLA’s Annual Report, reveals the urgent need for legal reform to make compensation levels affordable for English taxpayers. Taxpayers' individual share of the total provision is £2,217.
The report explains the record sum is made up of an increase in estimated liabilities of £25.5bn as a result of a Treasury adjustment to the discount rate. Added to this is £2.5bn for claims arising from the financial year ending 31 March 2016.
The NHSLA also reported a staggering annual increase of 27% (£319m) in compensation payments and legal costs which went from £1,169.5 million to £1,488.5 million.
MDU Chief Executive, Dr Christine Tomkins said:
“The NHSLA’s report should dispel any doubt – there is a compensation crisis and it affects every English taxpayer. Today’s report underlines what the MDU has been saying for some time. The NHS is sitting on a time bomb of future claims and legal reform is the only way to address it and to keep money within the NHS for treatment of patients.”
The NHSLA Chair, Ian Dilks confirms in the report that the astounding rise is not a measure of harm to patients.
Dr Tomkins continues:
“Of course the NHS must do all it can to prevent negligence, but this is not a problem caused by clinical standards, which remain very high. It is the result mainly of economic pressure and an outdated legal system meaning compensation must be calculated on the basis of private rather than NHS care. This means billions of pounds leaving NHS funds to provide independent sector care for just one person, taking away funds that could be used for other patients, including those with equally serious injuries who can’t prove negligence.
“We hope today’s figures provide a wakeup call for the government to take the only sensible option and overhaul personal injury law. The NHS is haemorrhaging money on claims which it should be able to retain so that all patients benefit. Patients must be compensated but in a fairer, more affordable way.”
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