Number of claims against NHS likely to increase
Industry News : 19 July 2012
The new head of the NHS Litigation Authority has revealed that the number of claims against the NHS is likely to increase this year as cases are pushed through ahead of funding reforms.
Catherine Dixon, a solicitor who joined as chief executive in April, has said that she expected a higher number of negligence claims before government changes to the conditional fee agreement (CFA) structure comes into force next April. According to its annual report, the NHS Litigation Authority dealt with a record 9,143 new claims last year and spent over £1bn for the first time in its 16-year history.
Dixon stated reforms will, in time, reduce the disparity between claimant and defence costs, but only after a period when more claims have to be settled.
‘There seems to be a level of activity to get people signed up to the CFA - these will come through over the next couple of years. After that period we may see numbers falling,’ she said.
She argued against suggestions that claims are fought too quick by the authority, saying it was important to challenge cases that could not be substantiated. ‘We interpret the law in a certain way and if we do end up in trial we’re generally successful.’
Dixon stated that the latest figures provide a reason for optimism, revealing that the number of claims closed rose by 13% last year to 14,171 and the average duration of claims fell 25% to 3.54 years.
Now, Dixon is wanting to focus on improving the authority’s communication with NHS trusts when it comes to learning lessons from mistakes and sharing information. The NHS trusts intend to put into place an incentive scheme, rewarding those with the least claims.
‘We look for a correlation between things that aren’t being done and a propensity to claim,’ she said. ‘We can financially encourage trusts as well and give them a discount on what they pay if they have a good claims history.
‘If they have a poor one, the cost may go up depending on the size of the trust and whether they can bear it financially.’
The authority is also currently reviewing its panel of 11 law firms which shared around £48m last year in defence costs. The current list consists of Browne Jacobson, Hempsons, Veitch Penny, DAC Beachcroft, Clyde & Co, Kennedys, Capsticks, Bevan Brittan, Weightmans, Ward Hadaway and Hill Dickinson.
A tender process will open later on in the year, with the new panel to be chosen by April.