NHS LA triennial report: Action needed to drive down cost of clinical negligence, says MPS

In response to the Department of Health’s triennial review of the NHS Litigation Authority (NHSLA), the Medical Protection Society (MPS) is pleased that the cost of clinical negligence is recognised as an issue but wants to see a debate on the merits of a limit on future earnings and future care costs.¹

The report states that the NHS LA is well led and efficient; but recommends a review of options around claimant costs and the long term affordability of damages levels. MPS believes this is an important recommendation; however there should be a wider debate about the potential benefits of limits on future earnings and future care costs in special damages awards.

In response to the Report, Emma Hallinan, Director of Claims and Litigation at MPS said:

“We now know that the NHS LA estimates that £28.3bn will be needed to cover known and future claims for clinical negligence for past patient care – up by 10% on last year. We are pleased the report agrees with us that fixed costs for small value clinical negligence claims are needed; the next step is to have a debate on the merits of a limit on on future earnings and future care costs in special damages awards.

“In our experience, special damages claims, such as compensation for future care costs and future earning capacity, have increased in recent years. We could learn from other countries; in some Australian states there are limits on the loss of earnings at typically a multiple of two or three times the average weekly earnings.

“As difficult decisions are made about what the NHS can afford, it is crucial that we ask ourselves whether it is appropriate and affordable to continue to pay such high costs in damages. MPS believes that these costs could be better spent on patient care for all.”

As part of its priorities for the government, MPS made four recommendations to tackle the rising cost of clinical negligence²:

• A debate on the merits of a limit on special damages
• Fixed costs for small value clinical negligence claims
• An ultimate limitation period on bringing claims
• Reform rules relating to claimant expert reports covered by ‘after the event’ insurance

For further information please contact Kim Watson, Media Relations Manager at MPS on 0207 399 1428 or email [email protected]

ENDS