Hospitals missing out on insurance windfall

NHS hospitals are wasting the chance to claim back hundreds of millions of pounds from insurance companies for the cost of treating accident victims, legal experts have warned.

Overworked managers are routinely failing to chase costs for the care of patients injured on the roads or in the workplace and rely on insurers themselves to voluntarily pay up.

New figures reveal that the amount successfully recouped by trusts in England has decreased by 12 per cent over the last two years to just under £163m in 2015-16. Last night an executive for the Association of Personal Injury Lawyers (APIL) said the sum was likely to represent less than half of the cash potentially available to the financially ailing sector.

Department of Health rules also mean the total recoverable cost for each patient is capped at £48,849, meaning hospitals – in deficit by £2.45bn last year – are missing out on recovering the full cost of seriously injured patients, if claims are pursued.

Jill Greenfield, APIL committee member, said: “When hospitals treat accident victims, they’re often unwittingly cushioning the costs of the insurance industry.”

Research by APIL estimates that the cap on patient compensation deprives NHS trusts of £20m a year, roughly the same as 750 nurses’ salaries.

Under current law, motor, workplace and other insurers are obliged to notify the Department of Work and Pension’s Compensation Recovery Unit when a pay-out is being claimed by an injured party. The unit then contacts hospitals, asking for details of the treatment.

But Ms Greenfield said far more money could be recouped if trusts proactively went after insurers.