Claims settled in the last financial year totalled 386m, a staggering seven-fold increase over the last three years. The figures, presented to Parliament on Thursday, reveal that by March 2000, there were 23,000 legal claims against the NHS outstanding - totalling 2.6bn. Predicted, but as yet unreported claims are estimated at a further 1.3bn - leaving the NHS facing total liabilities of 3.9bn.
Legal costs outstrip actual compensation in a large number of cases, the report says.
The report provides firm evidence that the only people winning from the system are the lawyers. In almost all cases the taxpayer foots the bill, either in damages or in legal aid. The Litigation Authority and the Legal Services Commission are making improvements to the way they handle claims. Implementation of our recommendations should provide patients with improved access to remedies, speed up settlements and cut legal costs. The NAO's said change was needed to bring the system under control.