Simon Kayll, CEO at the Medical Protection Society said:
“MPS welcomes this much needed and important consultation exploring changes to the framework which determines the Personal Injury Discount Rate and will review it in detail.
“It is essential that that the government agrees a new more common-sense approach to setting the Personal Injury Discount Rate with the reality of how claimants invest compensation payments at its core.
“The government needs to get this right if we are to avoid further sudden shocks to the cost of compensation in the future.
“The rate should be set following thorough consideration of the potential impact on the NHS, the public purse and the affordability of professional protection for doctors.
“We are extremely disappointed and concerned by the government’s recent decision to reduce the Personal Injury Discount Rate so significantly from 2.5% to -0.75%. This decision has increased the cost of settling future loss claims against our members at a time when the cost of clinical negligence is already at a worryingly high level.
“To illustrate, consider a 21 year old woman requiring long-term care, but with a normal life expectancy, resulting from a GP's failure to diagnose a sub-arachnoid haemorrhage. A claim of £1million prior to 20 March (compromising of £700k of future care costs and £300k of other claims costs) would now, at the new discount rate of -0.75%, cost £2.3million. A similar claim at £5million would now cost £12.8million. We are already beginning to see the consequences of this decision to the cost burden on the NHS.
“It is clear that the case for a whole package of legal reforms to tackle the spiralling cost of clinical negligence is becoming ever more pressing.
“In the short term, we welcome the government’s commitment to make appropriate funding available to meet the additional cost to GPs. However, we will continue to push hard in our meetings with the Department of Health to ensure the government honours its promise to fully protect GPs from the financial impact of this decision, and sets out the details of the agreement as a matter of urgency. Without sufficient support this increase in costs will need to be reflected in GP membership subscription rates, and we know this will be very troubling news for our members.”
END
For a PDF of this press release, please click here
For further information contact Shannon Darling: [email protected] or 0207 399 1319