Why the independent inquiry into Ian Paterson is going to have a monumental effect on Medical Indemnity

Why the independent inquiry into Ian Paterson is going to have a monumental effect on Medical Indemnity

Why the independent inquiry into Ian Paterson is going to have a monumental effect on Medical Indemnity

19 Feb 2020

Why the Ian Paterson case will have a monumental effect on the Medical Malpractice Industry and your Policy

Why the independent inquiry into Ian Paterson is going to have a monumental effect on Medical Indemnity

Paterson who is now serving a 20-year prison sentence was discovered to be negligent (malpractice) for 17 counts of wounding with intent, having performed needless surgeries to trusting patients who had not consented to the procedures. As a result, an independent inquiry has recommended the recall of 11,000 patients for their surgeries to be reassessed and furthermore, recommendations have been made to mitigate scenarios of this nature from occurring in the future. Such recommendations include: How practitioners are indemnified and regulated to safeguard appropriate corporate accountability in the private medical sector. Availability of information about practitioner performance to the public. Investigating healthcare professionals’ practice and behaviour. Regarding Medical Indemnity, the inquiry states:

“Medical defence organisations cover the costs of claims and damages awarded to patients. However, they are not subject to financial conduct regulation, and the indemnity cover they provide is discretionary. The Medical Defence Union used its discretion to withdraw cover since Paterson’s activity was criminal. This left patients without cover”. – page 220.

It is the discretionary nature of a medical defence organisations’ membership (they do not provide contract certain policies) that leave practitioners and patients vulnerable. In the case of the Paterson case, the Spire paid out £27.2m to patients for malpractice. Please read my article on vicarious liability to find out why. The Inquiry further goes on to say:

“We recommend that the Government should, as a matter of urgency, reform the current regulation of indemnity products for healthcare professionals, in light of the serious shortcomings identified by the Inquiry, and introduce a nationwide safety net to ensure patients are not disadvantaged” – Page 221.

A government consultation paper, assessing the appropriate clinical negligence cover was released last year to ensure against circumstances whereby an effected patient goes uncompensated, where there is proven circumstance of negligence or mis-diagnosis. The outcome from this consultation is still forthcoming and is likely to have a substantial effect on minimum indemnity requirements for which medical defence organisations will be heavily affected because: They do not offer contract certain policies (discretionary cover only).They are not regulated by a regulatory body. They do not have to prove and ensure financial solvency. They do not have to operate under financial conduct regulations. To learn more about the this, please read my commercial insurance for medical indemnity article. It is essential for practitioners to review their indemnity arrangements now more than ever. The world is changing, the nature of claims are also changing and as a consequence practitioners, entities and medical groups are left exposed, without even knowing it.

To get more information and to learn more about the changes in medical indemnity contact Dr Edwin Rajadurai.

Switch Board: +44 (0)207 846 9010

Why the independent inquiry into Ian Paterson is going to have a monumental effect on Medical Indemnity

Paterson who is now serving a 20-year prison sentence was discovered to be negligent (malpractice) for 17 counts of wounding with intent, having performed needless surgeries to trusting patients who had not consented to the procedures. As a result, an independent inquiry has recommended the recall of 11,000 patients for their surgeries to be reassessed and furthermore, recommendations have been made to mitigate scenarios of this nature from occurring in the future. Such recommendations include: How practitioners are indemnified and regulated to safeguard appropriate corporate accountability in the private medical sector. Availability of information about practitioner performance to the public. Investigating healthcare professionals’ practice and behaviour. Regarding Medical Indemnity, the inquiry states:

“Medical defence organisations cover the costs of claims and damages awarded to patients. However, they are not subject to financial conduct regulation, and the indemnity cover they provide is discretionary. The Medical Defence Union used its discretion to withdraw cover since Paterson’s activity was criminal. This left patients without cover”. – page 220.

It is the discretionary nature of a medical defence organisations’ membership (they do not provide contract certain policies) that leave practitioners and patients vulnerable. In the case of the Paterson case, the Spire paid out £27.2m to patients for malpractice. Please read my article on vicarious liability to find out why. The Inquiry further goes on to say:

“We recommend that the Government should, as a matter of urgency, reform the current regulation of indemnity products for healthcare professionals, in light of the serious shortcomings identified by the Inquiry, and introduce a nationwide safety net to ensure patients are not disadvantaged” – Page 221.

A government consultation paper, assessing the appropriate clinical negligence cover was released last year to ensure against circumstances whereby an effected patient goes uncompensated, where there is proven circumstance of negligence or mis-diagnosis. The outcome from this consultation is still forthcoming and is likely to have a substantial effect on minimum indemnity requirements for which medical defence organisations will be heavily affected because: They do not offer contract certain policies (discretionary cover only).They are not regulated by a regulatory body. They do not have to prove and ensure financial solvency. They do not have to operate under financial conduct regulations. To learn more about the this, please read my commercial insurance for medical indemnity article. It is essential for practitioners to review their indemnity arrangements now more than ever. The world is changing, the nature of claims are also changing and as a consequence practitioners, entities and medical groups are left exposed, without even knowing it.

To get more information and to learn more about the changes in medical indemnity contact Dr Edwin Rajadurai.

Switch Board: +44 (0)207 846 9010

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Global Headquarters

Servca Group

Dukes House

32-38 Dukes Place

5th Floor

London, EC3A 7LP

United Kingdom


+44 (0) 207 2250000

info@servca.com


Broker at Lloyd’s SLM1389

European Office

Servca Europe

Dragonara Business Centre

Dragonara Road

5th Floor

St Julian’s, STJ 3141

Republic of Malta


+356 (20) 341690

eu@servca.com


Broker at Lloyd’s (Brussels) SLM1883

Canadian Office

Servca Canada Insurance Group Inc
40 King Street West
Suite 2100
Toronto
M5H 3C2
Canada


+1 (647) 846 5555

canada@servca.com


Non-regulated servicing company

Northern Ireland

Servca Northern Ireland
River House Belfast

48-60 High Street

Belfast

BT1 2BE



+44 (0) 2895582000

ni@servca.com


Broker at Lloyd’s SLM1389

© 2024 Servca


Servca Group Ltd is a private limited company registered in England and Wales; Registered Number: 7727494; Registered Office: Dukes House, 32-38 Dukes Place, 5th Floor, London, EC3A 7LP, United Kingdom. Authorised and regulated by the Financial Conduct Authority. Servca European Insurance Brokers Ltd (a private limited company incorporated in Malta and enrolled to act as an insurance broker); Tower Business Centre, Level 3, Tower Street, Swatar, BKR, 4013, Republic of Malta. UK branch office is registered in England and Wales, authorised and regulated by the Financial Conduct Authority. Servca Canada Insurance Group Inc, a private limited company incorporated at 40 King Street West, Suite 2100, Toronto, M5H 3C2, Canada. Servca group of companies are owned and operated by Servca Group Holdings Ltd, a private limited company registered in England & Wales.

Privacy Policy

Cookies

Global Headquarters

Servca Group

Dukes House

32-38 Dukes Place

5th Floor

London, EC3A 7LP

United Kingdom


+44 (0) 207 2250000

info@servca.com


Broker at Lloyd’s SLM1389

European Office

Servca Europe

Dragonara Business Centre

Dragonara Road

5th Floor

St Julian’s, STJ 3141

Republic of Malta


+356 (20) 341690

eu@servca.com


Broker at Lloyd’s (Brussels) SLM1883

Canadian Office

Servca Canada Insurance Group Inc
40 King Street West
Suite 2100
Toronto
M5H 3C2
Canada


+1 (647) 846 5555

canada@servca.com


Non-regulated servicing company

Northern Ireland

Servca Northern Ireland
River House Belfast

48-60 High Street

Belfast

BT1 2BE


+44 (0) 2895582000

ni@servca.com


Broker at Lloyd’s SLM1389

© 2024 Servca


Servca Group Ltd is a private limited company registered in England and Wales; Registered Number: 7727494; Registered Office: Dukes House, 32-38 Dukes Place, 5th Floor, London, EC3A 7LP, United Kingdom. Authorised and regulated by the Financial Conduct Authority. Servca European Insurance Brokers Ltd (a private limited company incorporated in Malta and enrolled to act as an insurance broker); Tower Business Centre, Level 3, Tower Street, Swatar, BKR, 4013, Republic of Malta. UK branch office is registered in England and Wales, authorised and regulated by the Financial Conduct Authority. Servca Canada Insurance Group Inc, a private limited company incorporated at 40 King Street West, Suite 2100, Toronto, M5H 3C2, Canada. Servca group of companies are owned and operated by Servca Group Holdings Ltd, a private limited company registered in England & Wales.

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