The NHS is spending over £1bn in compensation payouts, revealing the cost poor care is having upon the health service.

A report by financial analyst Frontier Economics concluded that poor care is costing the NHS £2.5bn each year. More than half of this sum is spent on compensation payouts.

This was verified by figures obtained from the NHS Litigation Authority, which revealed £1.3bn in compensation was paid to victims of medical negligence in 2012/13.

Health Secretary Jeremy Hunt said: “These are large sums of money which the NHS is potentially wasting.”

“Too many people still think that providing the best care is something you do only when you can afford it – and fail to appreciate that improving care is one of the best ways to control costs in financially challenged circumstances.”

In a speech at Birmingham Children’s Hospital, Mr Hunt called for the NHS to reduce avoidable costs by improving standards of quality and care.

With 80% of NHS bodies having recently been told they are ‘inadequate’ or ‘require improvement’ by the Care Quality Commission, the task could be a difficult one.

Peter Walsh, chief executive of Action Against Medical Accidents, described the news as a “startling reminder” of how much the NHS must improve.

Poor patient safety

If you or your loved one has been harmed by poor patient safety, please get in touch with us to discuss your options. If you have been the victim of medical negligence, you could be entitled to claim compensation for the damages you have wrongfully incurred.

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