NHSLA sees clinical negligence claims rise 30% in a year

The National Health Service Litigation Authority saw newly reported clinical negligence claims surge by around 30% in 2010/11, an increase its chief executive blamed on the profitability of the work for claimant solicitors and ‘claims farmers’.

The authority’s annual report and accounts said there were 8,655 reported claims over the twelve months, up from 6,652 in 2009/10.

The NHSLA also revealed a 6% rise in non-clinical claims to 4,346.

Writing in the annual report, chief executive Steve Walker said: “Multiply those increases by the significantly above inflation rise in cost per claim and you will appreciate why we are very pleased to have been able to hold the increase in contributions for 2011/12 to the forecast figure of 10%.”

The NHSLA suggested that the costs claimed by claimant lawyers “continue to be significantly higher that those incurred on our behalf by our panel of defence solicitors”. This continued to be a major concern, it said.

The annual report added: “The availability of Conditional Fee Agreements and the continued increase in their use by claimants in clinical negligence claims has also meant that claimants’ costs are almost invariably disproportionate, often significantly, to the amount of damages paid, particularly in low-value claims.”

In the 5,398 clinical negligence claims closed by the NHSLA with a damages payment in 2010/11, the authority paid over £257m in total legal costs – “of which almost £200m (76% of the total costs expenditure) was paid to claimant lawyers”.

The annual report also revealed that:

• There was a reduction in 2010/11 in the time to resolution across all of its liability schemes, compared with 2009/10
• The number of outstanding incidents and claims across all its schemes at year end increased by almost 9% on the previous year
• The NHSLA paid out £729.1m under its Clinical Negligence Scheme for Trusts last year, and £134.3m under its Existing Liabilities Scheme and its scheme for covering liabilities against the former regional health authorities.
• £42.4m was also paid out under the authority’s Liabilities to Third Parties Scheme and £5.5m under its Property Expenses Scheme.

Walker added that the NHSLA was “delighted” that the Ministry of Justice was taking forward the recommendations of Lord Justice Jackson in relation to the costs of civil litigation.

“We believe very strongly that a regime which allows success fees and the recoverability of After the Event insurance premiums makes litigation so profitable that solicitors and so-called ‘claims farmers’ are drawn to the market thereby fuelling the rise in claims volumes we have experienced,” he said.

Philip Hoult