MILLIONS of pounds of NHS cash meant for patient care on Merseyside is being used to cover the fees of lawyers pursuing medical negligence claims, it was claimed last night.
In an exclusive interview with the Daily Post, the chief executive of the NHS Litigation Authority revealed his “very real concerns� at the growing amounts being spent to cover legal fees.
But one of Liverpool’s most prominent clinical negligence lawyers last night said the authority itself was part of the problem and stressed the positive work done by local lawyers in supporting patients who often had no other course of redress.
In the past year, the NHS in Merseyside and Cheshire has paid out £3.8m in claimant costs, on top of £11.1m in damages for claims of medical negligence.
Figures obtained by the Daily Post also show that the number of medical negligence claims are rising, with 250 made last year in Merseyside and Cheshire.
Stephen Walker, chief executive of the authority, which deals with claims made to trusts, warned exaggerated claims would not be tolerated.
He revealed that a Liverpool law firm was at the centre of a two-year investigation into what he described as the “most extreme� claim his body had ever received for costs.
According to documents published by the litigation authority, the firm lodged a claim for costs in the courts to the tune of £4,479,957 in the financial year 2004/05.
The firm, which the authority has declined to name, agreed to accept the litigation authority’s offer of just £449,000, around 9% of the original demand.
Mr Walker said: “We have passed that case to the Law Society and they have informed the Solicitors Regulation Authority, who are still investigating.
“It is easily the most extreme case we have ever had, but there is a worrying trend developing when you look at the level of costs being applied for by solicitors acting on behalf of those making a claim.
“We see the level of work that goes into a lot of these cases, and we know that if it was our solicitors doing the work, then the amount charged would be much lower.
“All the money which goes to solicitors is money which could, and should, be spent on patient care.�
Each hospital pays a contribution to the litigation authority to deal with claims on their behalf. The figure is set after a risk assessment takes place.
As the number of claims rise, the amount each hospital pays goes up to. Currently, hospitals in Merseyside and Cheshire pay £18m a year.
Mr Walker added: “The problem we have is that the courts are currently very generous in awarding costs, and that is using up money which is meant to be spent on patient care.
“Our role is to make sure that, where patients suffer as a result of neg- ligence, they are suitably compen- sated.
“But we have very real concerns about the level of costs that are attached to it.�
A report prepared by Ron Bradshaw, a well-known Liverpool lawyer who retired recently from his post as chairman of the litigation authority, calls for action on costs.
Mr Bradshaw wrote: “That claimants’ lawyers persistently seek higher and higher costs and frequently decline to accept our offers to med- iate, suggests that they are either endeavouring to make good a loss of fees because of a reduced number of claims or are simply greedy.
“While exceptional, that Liverpool example highlights the problem described by some not as ‘compensation culture’ but ‘vulture culture’.�
The number of claims made against hospital trusts in the region for medical negligence rose slightly in 05/06 compared with a national decrease.
Aintree Hospitals and the Royal Liverpool and Broadgreen NHS Trust both received 38 claims, while Wirral Hospitals NHS Trust received 37. The highest amount of costs paid out on behalf of hospital trust in the region was £787,050, which was for costs associated with claims against The Countess of Chester hospital, followed by Wirral with £667,592 and Liverpool Women’s Hospital, which had claimants’ costs of £459,489.
Damages of £3.13m were awarded against the Women’s, while Aintree Hospitals had claims of £2.16m.
Southport and Ormskirk Hospitals had damages paid out on its behalf of £1.28m.
Peter Walsh, from campaign group Action Against Medical Accidents, said: “There is plenty of scope to reduce the cost, such as more honest admission of liability and settlement of claims out of court.
“Lots of people have been forced to go to ‘no win no fee’ solicitors who charge higher costs to the defendant to cover their risks.�
A Department of Health spokesman said: “The Government’s policy is that it is right that NHS patients who are injured as a result of clinical negligence should be able to obtain correct and full compensation.
“Legal fees have been rising above inflation.�