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Defence group reopens lobbying battle on clinical negligence costs reform


The lobbying battle to persuade the government to reduce clinical negligence costs has begun, with claimant costs already in the line of fire.


The Medical Defence Union said today that it had written to the health secretary Wes Streeting calling for him to consult on proposals to address the cost of clinical negligence.


Such a manoeuvre is to be expected for a defence organisation representing doctors, dentists and other healthcare professionals, but the speed with which it has moved will put claimant lawyer groups on alert that the change in government has not quelled calls for reform.


Last month NHS Resolution revealed in its annual report that claimant legal costs increased by 11% to £545.3m in 2023/24, while average costs for claims up to £25,000 had now risen to £26,000.


The MDU says the system is ‘crying out for reform’ and cited one case it dealt with where a claimant received £1,000 while their legal costs were £30,000.


‘We regularly see legal costs eclipse the amount of compensation awarded to a patient,’ said MDU chief executive Dr Matthew Lee. ‘I have written to the secretary of state for health and social care, urging him to take action. Every pound the NHS pays out in a settlement for clinical negligence is a pound less that cannot be spent on innovation and improving patient care for all.’


The MDU’s immediate target is to convince the government to pick up the plans for fixed recoverable costs in clinical negligence claims up to £25,000.


The previous Conservative administration consulted and pushed through with the proposal, only for the election to interrupt progress at the rule-drafting stage. The idea had been to introduce FRC for lower-value claims in October, but there have been no updates since the election and the recently-published statutory instrument for civil procedure rule changes in October did not mention fixed costs.


Lee said reform is still more necessary than ever after a period where costs have increased.


'We have been seeing a steady increase in claims costs and in 2023 we paid out the highest amount in indemnity and legal costs for over 10 years,' he said. ‘The prompt introduction of fixed recoverable costs in clinical negligence claims up to £25,000 would be a start, shortly followed by a commitment to extend that regime to claims valued up to £250,000.’

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