This item was published during the term of a previous administration that ended in April 2007
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Recovery of NHS costs from accident victims
12/09/2002
Consultation on the recovery of National Health Service costs in cases involving personal injury compensation begins tomorrow.
The consultation is in parallel with a similar exercise being conducted in England and Wales after the Law Commission proposed that the rights of NHS hospitals to recover costs from road traffic accidents (under the Road Traffic (NHS Charges) Act 1999) should be extended to all cases where people claim and receive personal injury compensation for accidents and illnesses that require treatment by the NHS.
The consultation paper seeks views on the proposal to introduce a system of recovery of charges of NHS hospital treatment costs in cases where treatment has been provided to an injured person who goes on to claims and receives personal injury compensation.
The payment of NHS costs will be made by the person or organisation paying the compensation and not the person who receives treatment.
Health Minister Malcolm Chisholm said:
"Since the 1930s, insurers of motor vehicles have been liable for the cost of hospital treatment where victims of road traffic accidents were awarded personal injury compensation.
"It appears quite logical for the NHS to be reimbursed in all cases where personal injury compensation is paid to individuals for accidents or illnesses which have required treatment from the NHS and I am happy to announce the launch of this consultation."
Around £120m per year on a UK basis could potentially be raised by this scheme. Applying the accepted 10% share for Scotland, this would result in a potential £12m a year.
Charges will be calculated by using a simple tariff based on the average cost of people needing treatment for traumatic injuries.
The flat rate charge for treatment without hospital admission will include an amount towards the cost of any repeat attendances.
The daily rate for treatment with hospital admission will, likewise include an element for any follow-up appointments.
The proposal would have no effect on the standard or extent of NHS care of people needing medical treatment after an accident or in respect of an illness.
Recoveries will take place independently of what happens at the hospital. The patient will be asked no questions and no medical information is needed for the recovery to take place. The NHS recovery will have no effect the amount of compensation awarded to the injured person.