Lump sum medical error awards 'to go'

Lump sum payments are viwed as flawed

Ministers are reportedly planning a major overhaul of the system of payouts for medical negligence in an attempt to reduce spiralling costs.

The Times newspaper says large one-off payments to people who have been the victims of medical errors are to be scrapped.

Instead, they would receive annual payments to meet their needs.

Other proposals reportedly being considered include:

• no-blame compensation for babies who suffer brain damage at birth
• fast-track hearings for minor claims

The annual bill for clinical negligence claims against the NHS in England is £400m. However, it is estimated that outstanding claims could total £4.4bn.

The Chief Medical Officer for England, Professor Sir Liam Donaldson, is working on a report looking at possible improvements to the system.

His recommendations are likely to form the basis of a White Paper.

However, the Department of Health has refused to comment on the proposals under consideration, describing press reports as speculation.

Windfalls

Replacing lump-sum awards with annual payments would end the situation where families of claimants receive large windfalls if they die.

It would also protect sick and injured people against the danger that their money might run out if they live longer than expected - or if the lump-sum fails to provide the returns expected when invested.

No-fault settlements for birth injuries - which can cost the NHS up to £5m for a single case - would speed up the system and reduce distress for parents of brain-damaged children.

And a fast-track scheme for simpler claims could cut the legal costs which are one of the biggest avoidable drains on NHS resources.

A report by the Commons public accounts committee earlier this month called for urgent reform of the complaints process.

It said the NHS's methods for dealing with claims lacked compassion and were "astronomically expensive".

It found that many cases take more than five years to be resolved and 8% of cases over 10 years.

In many instances, the overall legal bill far exceeds the financial settlement awarded to patients or their families.

MPs warned that unless reforms were introduced negligence cases would continue to drain the NHS of money.

They warned that they could also "reduce the impact of the increased funding for the NHS promised in the Budget".