No-fault compensation plan ‘will cost NHS millions’
SCOTTISH Government plans for a no-fault compensation system in medical negligence cases could add tens of millions of pounds to NHS costs, lawyers have warned.
One of the country’s leading law firms, Simpson & Marwick, said a no-fault system was not “affordable, workable, or desirable” and would push up costs “in the order of 50%”.
The Association of Personal Injury Lawyers also said it would require increased funding as it would open the flood gates to claims. The warnings came in responses to a Scottish Government consultation on plans to replace the existing court-based system of compensation payments in negligence cases.
The Herald revealed yesterday payouts have cost the NHS in Scotland at least £213 million since 2006, with the number of claims rising year on year.
The Scottish Government has been working towards a no-fault scheme since 2008 in a bid to streamline the system for patients who have suffered loss, injury or damage as a result of treatment. Under the plans, victims would no longer have to prove negligence – although they would have to show that they were harmed by treatment.
In 2011, an expert panel backed a no-fault system based on the Swedish model – which typically provides lower payouts – provided “adequate” free support was in place for those whose injuries left them needing permanent care.
The proposal was questioned by legal and medical bodies.
The Medical Defence Union, which provides legal support for health professionals facing negligence claims, said: “We do not think the Swedish model could be applied to Scotland, even if changes were made.
“The Swedish model is designed to work with the Swedish welfare system, that provides a high level of care on which damaged patients can rely.
“Will the public believe lower compensation payments, and presumably a requirement to rely entirely on NHS provided treatment and care, are preferable to the existing system?”
The Association of Personal Injury Lawyers said: “TheDeputy First Minister has suggested a no-fault scheme, could be implemented for potentially the same costs as the NHSpays in compensation and legal fees. This is not realistic.
“If a scheme were to be introduced without an increase in costs, there would be an increase in potential claims and if attempted, it would leave compensation awards decimated.”
Warning of a 50% increase in costs, Simpson & Marwick added: “It is unclear how this cost is to be met. If, as seems likely, it will be accompanied by an increase in volumes the cost to the state (as the main compensator) and other compensators, is likely to be huge.”
A Scottish Government spokeswoman said work was continuing to “clarify costs associated with the review group’s recommendations”.
She added: “We are currently analysing the responses received. We will publish our response on the proposed way forward once the analysis and the costing work has been completed.”