New rules on personal injury claims

The effect will be an increase in the size of compensation payments, leading to significant new costs for the NHS and medical defence organisations (MDOs), such as the MDDUS.

MDOs are not-for-profit financial mutuals, wholly owned by their medical and dental members. As such, the subscription rates they charge have to reflect their best actuarial estimate of the likely liabilities which they face. Yesterday’s decision will lessen the impact of the efforts which MDDUS, working with the Department of Health, NHS England and others, have been making to restrain the cost pressures already in the pipeline because of the higher number of claims and the higher costs already associated with them.

Speaking after the announcement, Chris Kenny, chief executive of MDDUS, said, “Everybody agrees that those who suffer medical accidents should be properly and promptly compensated. The increase in claims awarded show that this is already happening.

“The decision, based on a consultation undertaken in 2013, does not reflect that fact nor anything which has happened in the economy and healthcare in the intervening period – nor what is likely to occur in the coming years as a result of Brexit and other pressures. It takes no account of the interests of the NHS, facing acute financial challenges. It ignores the impact of unavoidably high indemnity fees on morale and recruitment in primary care. Future decisions simply must be more joined up.”