The True Cost of Medical Negligence: Understanding NHS Compensation Payouts
In the UK, those who undergo medical treatment are entitled to expect a certain level of care. When the required standard is not met, and harm occurs as a result, then the responsible medical practitioner (or institution) might be held accountable through the courts.
The NHS has, in recent years, faced a growing medical negligence bill. In the financial year ending April 2024, the total payouts amounted to £2.8 billion. There were around thirteen thousand new claims in that year, with the average claim earning around £204,672.
What’s worth noting is the proportion of claims that were settled outside of court. More than 80% of claims were settled in this way, which demonstrates what a well-travelled section of law this is. In most cases, both claimant and defendant will understand exactly what the likely outcome of a given case will be – which allows both to avoid the cost of entering a courtroom, and dealing with medical negligence claims directly.
Breakdown of Compensation Payouts
The money paid out in medical negligence payments covers two different kinds of damages. There are general damages, which cover the pain and suffering endured by the claimant as a result of negligence on the part of the defendant. This might mean physical, as well as psychological injury.
Then there are special damages, which cover specific kinds of loss. Care costs, travel expenses, the cost of hospital parking, and any loss of working capacity endured, might all fit into this category.
It’s worth noting that interest payments might also be covered by the courts. So, if the claimant has taken out a loan to cover their costs in the short term, they’ll be covered for the entirety of their spending.
Most Common Areas of Medical Negligence
Some kinds of medical treatment are more common than others, while others are more difficult. As a result, we tend to see some medical procedures turn up more often in medical negligence cases.
According to statistics provided by the NHS’s Resolution Foundations, the top five areas of negligence are Emergency Medicine, Obstetrics, Orthopaedic Surgery, General Surgery, and Gynaecology (respectively 13.3%, 11.6%, 10.8%, 5.9%, and 5.7%). These figures refer to the total number of cases in each instance, but when it comes to the value of the claims brought, obstetrics is the clear leader, accounting for around 56.7% of the total payouts. This means more than a billion pounds is spent annual on maternity-related claims.
Impact on the NHS Budget
Of course, money spent compensating victims of medical negligence is money that can’t be spent on doctors, nurses, hospitals and equipment. Compensation payouts take up around 2.8%, with a total ‘cost of harm’ to the organisation amounting to £5.1 billion in 2023-24.
