Abstract

In a recent report of the National Audit Office (National Audit Office, 2001), it was stated that the NHS must make provision for outstanding claims of £2.6billion together with an estimated liability of a further £1.3billion where negligent episodes are likely to have occurred, but where claims have not yet been received. The report noted that the number and value of claims continues to rise and they are taking on average about 5years to settle. Somewhat startlingly, it was found that nearly half the claims settled in 1999–2000 cost more in legal and other costs than the settlement itself. For settlements up to £50000 the costs of reaching the settlement are greater than the damages awarded in over 65% of the cases. Recommendations are made for the NHS Litigation Authority and the Legal Services Commission to work together to speed up the completion of cases; the Department of Health, the Lord Chancellor's Department and the Legal Services Commission to resolve the smaller and medium sized claims with a wider range of non-financial remedies and for the Department of Health to give clear guidance to NHS trusts on what information should be given to patients who have suffered adverse incidents. This article analyses the situation and makes recommendations for change.

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