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Lawyers charge NHS £75m in three years to settle negligence claims
Nicholas Cecil, Chief Political Correspondent17.11.08
LAWYERS have charged London health trusts £75million to deal with medical negligence claims in the last three years, it was revealed today.
Figures show patients received compensation of just over £180million between 2005 and 2008.
But for every £2.40 they have gained, £1 has been spent on legal bills. Health chiefs blame the costs on lawyers taking more cases on a no-win-no-fee basis and charging up to £600 an hour.
However, at two trusts the legal bill was higher than compensation costs.
Overall NHS trusts paid £24million in legal fees in 2007/8 - £8million to lawyers who were defending them and £16million in claimants' legal costs.
Lee Scott, Tory MP for Ilford North, who obtained the figures in parliamentary questions, is seeking a Commons debate on the issue. "The level of compensation is shocking but it's obscene how much money is going to lawyers," he said. The figures show:
● Barking, Havering & Redbridge trust paid out £16.2million in compensation, with legal costs of £6.9million.
● Chelsea & Westminster Healthcare trust made £13.6million of pay-outs and met legal bills of £3.9million.
● Guy's & St Thomas' Hospital Foundation trust's compensation total was £11million with costs of £3.5million.
● The Royal Marsden, who had the lowest legal costs, £71,596, actually paid more in legal fees, £114,389.
The compensation and legal bills are met through an insurance-style scheme run by the NHS Litigation Authority.
Mike Penning, Tory health spokesman for London, believes too many deals are being struck between lawyers rather than judges ruling on cases. He said: "The assumption must be that it's for the courts to decide not private deals between lawyers." Compensation to patients was about £56million in 2005/06, £51million in 2006/07 and £73million in the last financial year.
Criticising the growth in no-win-no-fee medical claims, Mr Penning added: "If the system is being abused and lawyers are seen as making easy money, then it undermines it for genuine claimants."
The Department of Health said some trust's legal bills will have risen because of lawyers charging inflation-busting fees and court cases setting new precedents for damage settlements.
A Barking, Havering & Redbridge trust spokesman said: "Litigation against this trust is directly related to the size of the organisation. This trust is one of the largest and busiest in the NHS."
Des Hudson, chief executive of the Law Society, defended the fees charged by lawyers. He said legal aid had been reduced and contingency fees were now paid by the negligent doctor or hospital, rather than from a deduction in damages. "The amount of these fees is limited and subject to review by the courts."
