The NHS Litigation Authority which is responsible for indemnifying the service against legal action has set aside £26.1bn to cover its existing and future liabilities – almost one quarter of the £113bn annual health budget.
The Health Secretary Jeremy Hunt is now expected to unveil new plans to fine hospitals which are dishonest about medical mistakes. Hospitals that are found to have been dishonest will face sanctions of up to £100,000.
Mr Hunt said: “Being open and learning from mistakes is crucial improving patient care. The NHS is a world class health service, but when mistakes happen it is vital that we face them head on and learn so they are never repeated.
“This sends a strong message that covering up mistakes will not be tolerated.”
In an interview with the Financial Times, former Lloyd’s of London insurance executive Michael Wade warned that the cost of NHS compensation is unsustainable.
Mr Wade is currently investigating the viability of public insurance schemes on the Government’s behalf.
“How on earth is that affordable?,” he said, adding: “It’s perfectly reasonable to raise the flag and say ‘We need to sit down and think about this’.”
