Home » Malpractice » Hospital Malpractice »

Hospital negligence claims cost state $140m

Jul 3, 2009 | Carol Nader | TheAge.com.au

Medical negligence claims against public hospitals have cost Victoria almost $140 million in the past four years.

Patients who claimed obstetricians made mistakes during childbirth accounted for most claims, with payouts exceeding more than $14 million last financial year.

The State Government spent $42.8 million on medical indemnity payments in that year, including compensation, settlements and legal fees. The payments relate to claims lodged in previous years.

But the Government's insurer anticipates the cost of claims made during that year will be far greater. Victorian Managed Insurance Authority chairman Adrian Nye said the premium paid by the Department of Human Services last financial year was $76 million.

"For any insurer managing a product where payments may not be made for up to 20 years, we know that the payments in respect of the years 2002 to 2005 will in fact be greater in today's dollars," he said.

The figures, obtained by The Age following a freedom-of-information battle spanning several months, show the amount paid out has been rising. But while the number of claims has fluctuated, there has been an overall fall from 1151 in 2001-02 to 799 in 2004-05.

Payouts doubled to $37.7 million in 2002-03 and have grown since. But Mr Nye dismissed the sharp rise in that year as an aberration.

A spokeswoman for Health Minister Bronwyn Pike blamed the rise on "increases in general inflation, as well as rises in legal costs and costs for ongoing care".

Most cases in which payments are made are settled out of court. Negligence on the part of the hospital has not been proven.

Many claims against obstetricians relate to babies born with cerebral palsy. But research released last week has triggered debate about whether obstetricians have been unfairly blamed.

It suggests a virus in the womb may be linked to the condition.

Robert Lyneham, chairman of the medico-legal committee at the Royal Australian and New Zealand College of Obstetricians and Gynaecologists, said payouts had the potential to be high.

"If it's established that an infant was harmed by some aspect of the delivery, then there's precedent for very large payouts to look after the child for the rest of their life," he said.

Victorian laws introduced in 2003 have made it more difficult for people to gain compensation. Patients must prove at least a 5 per cent permanent physical injury or 10 per cent psychiatric injury.

Slater & Gordon medical litigation specialist Paula Shelton said many people who would have received compensation now would not.

MEDICAL INDEMNITY PAYMENTS

2001-02 - $18.4 million

2002-03 - $37.7 million

2003-04 - $39.6 million

2004-05 - $42.8 million

BY SPECIALTY IN 2004-05

OBSTETRICS $14.6m

PEDIATRICS $5.99m

EMERGENCY MEDICINE $2.9m

GENERAL SURGERY $2.6m

GYNAECOLOGY $1.98m

ORTHOPEDIC SURGERY $1.7m

PSYCHIATRY $1.5m

SOURCE: VICTORIAN MANAGED INSURANCE AUTHORITY