Highest ever rate of increase for claims
Doctors and dentists are facing the highest ever rate of increase in clinical negligence claims—a fact the Medical Defence Union (MDU) attributes partly to “no win, no fee” lawyers.
Last year, “there were noticeable increases in claims frequency, ever-higher settlements and damages awards, and a continuing upward trend in the number of complaints to the professional regulators”, according to the MDU’s 2011 annual report, published in August. Complaints to the General Medical Council (GMC) rose by 23% in 2011 to nearly 8,800.
The MDU reports that it successfully rebuts 70% of claims, and wins more than half of cases that go to trial.
In the report, Jill Harding, head of claims, says the cost of claims is continuing to rise and argues that, while compensating patients is important, “this needs to be balanced against overall affordability of damages and proportionate costs”. She says the MDU does not believe the increase in claim numbers is driven by deteriorating standards of care but is likely to be partly due to “the continuing availability of ‘no win, no fee’ arrangements”.
However, Philippa Luscombe, clinical negligence partner at Penningtons, retorts: “We consider this unlikely given that the availability of funding and the profile of claims has remained broadly the same over the last few years, whereas the number of claims is increasing.
“We also find that this does not explain the 23% increase in claims made to the GMC over the same period—which has very little to do with any claim for compensation.”
Luscombe also takes issue with the MDU’s support for legislative reforms ending recoverability of success fees and introducing a 25% cap—the MDU has proclaimed 100% success fees “a major unfairness in the system”.
