MDU urges Government to prioritise action on negligence costs 

The Government is being urged by the Medical Defence Union to consult on proposals to address the rocketing cost of clinical negligence. 

According to the MDU’s annual report and accounts the current situation is ‘unsustainable’.

Last year, the defence body settled several claims where claimant costs were disproportionately high. One claimant received £1,000 but the legal costs were £30,000. Another claimant received £23,000 – and their legal costs were a whopping £140,000.

MDU chief executive Dr Matthew Lee warned that the entire clinical negligence system was ‘crying out for reform’. 

He said: ‘Nowhere is that more evident than in the disproportionate legal costs awarded in lower-value clinical negligence claims. We regularly see legal costs eclipse the amount of compensation awarded to a patient.’ 

Dr Lee has written to Health and Social Care Secretary Wes Streeting urging him to take action. 

Change needed

He said: ‘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. 

‘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 ten years. The MDU paid out £99m for settled claims – up from £78m the previous year. This shows the substantial amounts involved in clinical negligence litigation and why reform is warranted.

‘That is why the MDU has been campaigning for reform for decades. The prompt introduction of fixed recoverable costs – the amount of legal costs that the winning party can claim back from the losing party – 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.’ 

Dr Lee also called for the repeal of S2(4) of the Law Reform (Personal Injuries) Act 1948, requiring the courts to disregard the existence of the NHS when making a compensation award, and instead doing so on the basis of the cost of private care.

The defence body reported that, during 2023, it closed 80% of medical claims and 59% of dental claims without a payment of damages. 

Where cases proceeded to trial and concluded in 2023, the MDU’s annual report shows that 71% were successfully defended. 

Dr Lee added: ‘When a clinical negligence claim arises, it can be one of the most stressful episodes of a healthcare professional’s career. The MDU supports members every step of the way, and our success rate in defending claims demonstrates this’.  

Additionally, in recognition of the difficulties healthcare professionals can experience during a medico-legal event, the MDU’s annual report explains how the organisation has launched a new partnership with the independent charity – Doctors in Distress. The charity now provides MDU members with access to health and well-being services to support positive mental health.