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New GP contract brings changes to indemnity rules

Jan 31, 2019

NHS England bosses have today announced a new five-year contract for GP services in England which includes the introduction of indemnity state backed scheme.

The new deal – described by the NHS as the biggest reform to GP services in 15 years – follows a series of negotiations between the Government and key health stakeholders.

The Medical Defense Society has been engaged in talks about the changes, which come into effect in April and introduce a state backed indemnity scheme to cover some of the activities carried out by GPs.

CEO Rohan Simon said: “We are happy to support any policy that contributes towards helping our members. While we think there are elements of this new scheme that will help, we are concerned that there are factors that have not been addressed in this plan.

“There are a number of other factors that have contributed to indemnity costs and these are not addressed by this move. We believe issues such as fees charged by lawyers, tort law and the discount rate on negligence pay-outs need to be considered too.

“ We remain committed to lobbying for the best possible deal for GPs and MDS will be creating a new package for our members to embrace the new changes in the GP contract.”

Medical Defense Society will offer a pro rata refund to members on the portion of fees paid for cover of medical malpractice claims.

Each MDS member will receive individual contact with details about what their new fees will be.

The new state backed indemnity rules

The new rules announced today are in line with the details outlined in our previous post.

The new scheme aims to provide indemnity from cases of clinical negligence that come from NHS activities that are within the scope of the scheme.

The Government says it wants to cut the cost of indemnity and introduce a new process that is similar to the NHS indemnity scheme that has existed for hospital doctors since 1990.

Importantly, however, the new scheme does not cover:

• Non-NHS work – eg DVLA work or employee medical assessments
• General Medical Council inquiries
• Inquests
• Court proceedings
• NHS England complaints/investigations
• Access to medico-legal advice.

On this basis we advise that GPs continue to maintain their membership with the MDO.

For more details on this, check out our guide to the state backed indemnity scheme.

If you want to talk about the state-backed indemnity scheme – or any other matters relating your cover as a GP – contact us today.

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What you need to know about the new state-backed indemnity for GPs

Jan 29, 2019

GPs in England and Wales are facing changes to the way in which they get the indemnity they need to do their job.

The Government is still in negotiations over new proposals for a state-backed indemnity scheme, which is likely to be introduced in April this year.

While the Medical Defense Society has been engaged in talks about the changes – and has until now been focussed on representing members’ best interest in these – we think it’s important for GPs to be aware of the broad details of the proposed changes ahead of April .

What the state-backed indemnity scheme aims to provide

The Government’s scheme is being designed to provide indemnity from:

• cases of clinical negligence…
• …arising from the NHS activities that fall in scope of the scheme.

Both points are important to bear in mind when it comes to considering the cover you need as a GP – and we’ll come to that in a moment.

Why is the Government introducing a state-backed indemnity scheme for GPs?

The Government says it is acting to try to reduce the cost of indemnity to reduce a potential barrier when it comes to finding and keeping new GPs.

The idea is to introduce something similar to the NHS indemnity scheme that has existed for hospital doctors since 1990.

When it comes to cost, reports suggest that the average price of an indemnity for a GP has risen to about £8,000 a year. Medical Defense Society, which was set up by GPs for GPs, agrees with the need to reduce this cost – and has helped hundreds of members to already reduce the cost of their indemnity.

What won’t be covered by the state-backed indemnity scheme?

The Government’s scheme aims to cover clinical negligence for NHS work – which means it’s important for GPs to consider what’s outside this remit and how to protect themselves for this.

Before we do that, it’s worth considering the detail of what will be covered.

The Government’s advice states the new scheme will cover:

• Clinical negligence liabilities for all GP staff delivering primary medical services (under GMS, PMS and APMS contracts)
• Out of hours services under an APMS contract
• Public health services in arrangement with the local authority such as health visits for toddlers and sexual health services.

That offers useful clarity for GPs – and it’s important to stress that there are no plans for the state-backed indemnity scheme to cover:

• Non-NHS work – such as work for the DVLA or medical assessments for employees
• Support for proceedings and inquiries with the General Medical Council
• Representation at inquests
• Court proceedings.

While a GP might be covered for a civil matter, therefore, they still need to consider cover for criminal and professional cases that may arise from negligence claims.

Indeed, it’s estimated that as many as 60% of claims might fall outside of the remit of the cover offered in the state scheme.

What about the rest of the UK?

The English and Welsh Governments are both looking to introduce state-backed indemnity schemes in April 2019. There are, as yet, no plans announced to match this in Scotland – where costs are traditionally lower – or Northern Ireland.

Will it work?

The Medical Defense Society is happy to support any policies that help our members. However, there are concerns about the way this is being funded. Taking money for a state-backed indemnity scheme from the existing GP budget does not appear to match with the overall objective of reducing the cost for GPs.

It’s important to stress that there are still details to be decided when it comes to this policy. It’s also worth noting that some of the factors that have contributed to the rising cost of indemnities won’t be directly addressed by this move – and that issues such as lawyers fees, tort law and changes to the discount rate on negligence payouts all need to be addressed separately.

If you want to discuss the state-backed indemnity scheme – or any other matters relating your cover as a GP – get in touch with us. We’ll also aim to update you further once details are confirmed by the Government.