Lansley finds £185m to fund emergency bailout fund for NHS negligence claims

By
Daily Mail Reporter

Last updated at 3:26 AM on 12th January 2012

The soaring cost of negligence claims against the NHS has forced the Health Secretary to create a £185million emergency bailout fund.

Hospital negligence claims have trebled in the past ten years, leaving the NHS fund almost empty.

Now Andrew Lansley has had to step in to give the NHS Litigation Authority, which funds compensation claims and legal fees, access to £18million until April.

Health secretary Andrew Lansley has had to step in to give the NHS Litigation Authority access to £18million until April

Health secretary Andrew Lansley has had to step in to give the NHS Litigation Authority access to £18million until April

A surge in cases brought by no-win, no-fee lawyers and a rise in the survival rates of brain-damaged babies who then need lifelong care have both contributed to the increase in costs.

Annual payouts have rocketed from £277million in 2000-01 to nearly £1billion in 2010-11.

According to Government figures, if all cases brought against the NHS were lost the maximum that would be paid out rose £5.31billion in 2001 to £16.85billion last March.

During the past five years, clinical negligence claims have risen from 5,697 to 8,655 per year.

A spokesman for the Ministry of Justice said a large proportion of the rise in litigation was the increase in no-win, no-fee cases, where the claimant is not liable for any legal fees.

Another factor was the growing number of claims management companies who receive hundreds of pounds per case for referring claimants to lawyers, using aggressive sales techniques to draw in potential claimants.

Annual payouts by the NHS have rocketed from £277million in 2000-01 to nearly £1billion in 2010-11

Annual payouts by the NHS have rocketed from £277million in 2000-01 to nearly £1billion in 2010-11

Lord Howe, the Health Minister, said: ‘Following a review of claims, we have made additional funds available to the NHS Litigation Authority in order to make sure that those claimants who are entitled to compensation receive it in a timely way.’

The authority is primarily funded from trusts by legal insurance fees, which can range from a few thousand pounds to £10 million a year.

Margaret Hodge, the chairman of the Commons Public Accounts Committee, said the financial challenge facing the NHS was unprecedented.

She said: ‘It is both astounding and horribly depressing to see that current liabilities could take out over £16 billion.’

 

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