Scheme will act as an alternative to traditional insurance
The NHS Litigation Authority (NHS LA) has opened its insurance risk pooling scheme up to independent sector providers, reports Health Investor.
The Clinical Negligence Scheme for Trusts (CNST) will provide unlimited cover and no excess and operates as an alternative to buying insurance from traditional providers. Membership to the scheme is voluntary, and is funded by annual contributions into the risk pool by members.
The move has proved controversial for some independent providers, as the full cost of membership is not known in advance and members must commit to the scheme for a minimum of three years.
In addition, if a member leaves the scheme after the three-year period they must pay an unknown “exit fee” to cover incurred but not reported claims, or purchase run-off cover from the traditional insurance market.
Marsh healthcare practice leader Philip Dearn said the insurer had developed a number of products as alternatives to the CNST. He said: “We delivered a range of different options in a very limited timeframe to private hospital operators who have elected to go with alternative insurance solutions.”
NHS LA chief executive Catherine Dixon said: “We welcome the changes to the regulations which ensure that all providers of NHS care can now benefit from the cover offered by our indemnity scheme. This ensures that in the event of a claim, all NHS patients are treated consistently.”
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