State agency prevented from cutting compo costs

Fionnan Sheahan, Political Reporter

All medical claims made against hospitals since July 1 are supposed to be dealt with by the State Claims Agency (SCA), but red tape in the Department of Health has exposed taxpayers to much higher compensation pay-outs and legal bills as the agency has not yet been given the authority to handle these claims.

Up to 700 cases of medical malpractice and clinical negligence will be taken this year and, in the past two months, hospitals have reported around 200 incidents that could result in claims.

The Department of Health is responsible for 40% of the compensation claims against the State. Compensation bills in medical malpractice cases can cost millions and legal costs can run into six figures.

The head of the State Claims Agency has expressed his frustration and concern at the delay in the Department of Health making an order to allow health boards and hospitals to pass on the claims.

The Department decided in 1999 that risk and compensation claims for the public health services should be covered by a State-run scheme, yet almost three years later it does not have the agreement of all health boards and hospitals.

The SCA's new role of covering the clinical risks of health boards and hospitals and their professional staff was previously held by insurance companies. Under the Clinical Indemnity Scheme, operated by the State Claims Agency, hospitals and health boards are obliged to report incidents occurring in a hospital which may lead to a claim.

Since July 1, the SCA says it has received around 200 reports of this nature including:

* a child born with a possible cerebral dysfunction;

* a patient leaving their bed and falling;

* medication errors;

* birth problems.

State Claims Agency director Adrian Kearns said the authorisation to handle such claims needed to be granted to the body as a matter of urgency as their ability to investigate cases immediately is constrained.

“We would be very anxious to have that delegation order made. It means that while we are recording these incidents, the actual going out and investigating them cannot be done,” he said.

Last night, the Department of Health said some matters remain under discussion, which it hopes to finalise shortly.

Without the authorisation, the SCA cannot investigate any cases, request copies of medical records or interview witnesses or medical staff involved. Although Mr Kearns says he expects the order to be made soon, the delay prevents the SCA from doing its job of effectively getting its preliminary work done before a claim even arrives.

By investigating potential claims immediately, the SCA can establish quickly whether the State is liable and then decide whether to settle or go to court. The process is expected to save money by reducing both compensation bills and legal costs.