Mary Harney (Dublin Mid West, Progressive Democrats)

The management of claims covered by the clinical indemnity scheme has been delegated to the State Claims Agency, SCA, under the National Treasury Management (Amendment) Act 2000. Therefore, I have no direct involvement in their management. The 2000 Act imposes an obligation on the agency to ensure that the expenses incurred in the management of claims are contained at the lowest achievable level.

The establishment of the clinical indemnity scheme in 2002 has already produced significant savings in legal and other transaction costs by eliminating the multiple defendants who would each have had separate legal representation under the previous arrangements. The elimination of separate representation for hospitals, consultants and junior doctors has made it easier to settle cases. As well as eliminating multiple costs, it delivers compensation to patients with legitimate claims much more quickly. It also makes it easier to defend cases that have no merit.

The SCA minimises its own legal costs through the use of a panel of specialist solicitors selected following a competitive tender. Through these solicitors, it agrees the fees to be paid to counsel. However, in dealing with the costs of successful plaintiffs, it is obliged to work within the rules and conventions of the courts system where these matters are determined. Where the costs cannot be agreed between the parties, they are submitted for taxation. The agency is examining how legal costs might be further reduced.

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