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<p>The costs of clinical negligence are rising due to a range of factors such as rising
activity in the National Health Service, increasing life expectancy, costs of care
and factors within the legal environment. We need to tackle this rising expenditure
whilst ensuring that patients harmed by the NHS can access appropriate compensation
and that the NHS is able to learn from mistakes and improve patient care.</p><p> </p><p>In
February my Rt. hon. Friend the Secretary of State for Health met with the former
Secretary of State for Justice (Elizabeth Truss) at which the Secretary of State for
Health was informed that that there would be a change in the personal injury discount
rate. This change will have a significant impact on the cost of clinical negligence
and the effect on general practice indemnity costs is of particular concern. This
is why alongside the announcement of a change to the rate the government announced
that the Department will work closely with general practitioners (GPs) and Medical
Defence Organisations to ensure that appropriate funding is available to meet additional
costs to GPs, recognising the crucial role they play in the delivery of the NHS. Since
that time the Ministry of Justice (MoJ) have consulted on proposals to change how
the discount rate is set in future.</p><p>The Department is working closely with MoJ
on proposals to introduce fixed recoverable costs in clinical negligence cases which,
if implemented, would reduce the disproportionality between damages and costs in lower
value claims. The Department also recently completed a consultation on proposals to
introduce a ‘Rapid Resolution and Redress’ scheme which, if implemented, would be
an alternative compensation scheme for families who haveexperienced severe avoidable
birth injury. This scheme is aimed at delivering a long-term reduction in these harmful
events through investigation and learning and providing an improved experience for
affected families. This would be a voluntary scheme which would not affect an individual's
right to litigate.</p>
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