The Medical Defence Union (MDU) said millions were being drained from frontline NHS care by a system that calculates compensation on the basis that future treatment will be provided privately, even where a claimant subsequently receives that treatment through the NHS.
Thomas Reynolds, director of policy and communications at the MDU said: ‘Most taxpayers would be shocked to learn that they are footing an ever-increasing legal bill for clinical negligence claims, with lawyers receiving almost four times as much as claimants in lower-value cases. There are currently no effective controls on these costs and all the evidence suggests they will continue to rise.'
NHS spending on clinical negligence reached almost £3.3bn last year, rising from around £600m in 2006/07, an increase of more than 500%.
The National Audit Office found said legal fees are 3.7 times the value of compensation awarded to claimants in lower-value claims. One case cited by the MDU saw a claimant receive £1,400, while legal fees reached £60,000. Another claimant received £5,000, while legal fees totalled £155,000.
The MDU is calling on the Chancellor to introduce Fixed Recoverable Costs (FRC) which would cap recoverable legal costs for claims of £25,000 and under, saving the NHS £50m every year.
Reynolds continued: ‘Introducing FRC offers the Chancellor an opportunity to save the NHS tens of millions of pounds every year, while ensuring patients continue to receive fair compensation where negligence has occurred.
‘At a time when NHS finances remain under pressure, implementing these reforms should be an easy win for the Chancellor and the taxpayer.'
A Treasury spokesperson said: ‘The Chancellor is fully focused on his priorities, to give families and businesses a bit of breathing space, back British jobs, and drive growth in every postcode, underpinned by a commitment to meet the fiscal rules.
‘As has always been the case, decisions on tax are a matter for the Chancellor to set out at fiscal events, rather than routinely commenting on rumour, speculation or proposals.'
