Victims of clinical negligence in the NHS may be offered speedy settlements with fixed rate payments, in a bid by health ministers to curb the spiralling cost of medical litigation.
Claimants would still have the right to pursue their cases through the courts, but ministers hope that the prospect of a swift payout would encourage many with smaller claims to choose the new scheme. It would be based, like the criminal injuries compensation scheme, on a fixed tariff of payments depending on the injury caused. Under the scheme, which will cover both hospital and GP blunders, patients would also be offered non-financial benefits, such as daily nursing visits.
Other ideas under consideration are a “no fault” compensation scheme, more use of structured settlements providing annuities rather than lump sums, and greater recourse to mediation to settle disputes.
The proposals are designed to divert money that currently goes to patients' lawyers into compensation and patient care. The impetus was provided by a report from the National Audit Office in May which estimated that the cost of settling outstanding and expected claims could reach £3.9bn ($5.5bn).
The report confirmed earlier research that showed that for smaller claims the sums paid to claimants' lawyers often exceed the amount of compensation. Paul Balen, a solicitor specialising in medical negligence, said: “The more flexible the methods of compensating victims are . . . the better. But half of me strongly suspects it's a cost cutting exercise.”
The proposals for reform will be outlined in a white paper next year.