More than $100m in medical malpractice claims paid out over past three years

Botched operations and other procedures have cost South Australians more than $100m over the past three years – and taxpayers could soon expect a bill of more than $300m.

Botched operations and other procedures have cost South Australians more than $100m over the past three years — and more than $300m could be paid out to settle medical malpractice claims already lodged with the state government.

Patients say the claim system should be overhauled so that they are not forced to endure years-long court battles, and all relevant medical expenses are guaranteed to be covered for life.

Treasurer Stephen Mullighan said $31.3m was paid for four medical malpractice claims settled in 2021-22, $34.7m for eight claims settled in 2020-21 and $40.5m for nine claims in 2019-20.

In total, 21 claims worth $106.5m were paid out over the three-year period — an average of about $5m per claim.

Mr Mullighan said, as of July 1 this year, the South Australian Government Financing Authority (SAFA) was managing 60 unresolved medical malpractice claims.

If those cases are settled and similar amounts are paid out, taxpayers could be charged $300m or more.

But he said it was not possible to project exactly how much will be paid out this year.

SA Treasurer Stephen Mullighan said it was not clear how much would be paid out this year. Picture: Matt Loxton

“Claims develop over many years following an incident and the timing of settlements is based on individual circumstances, including factors which are outside SAFA’s direct control,” he said in response to a question asked during budget estimates.

Among claims paid out in the last financial year was $9.5m awarded to the mother of a teenage boy left with severe disabilities following his birth at the Women’s and Children’s Hospital.

The payment, one of the biggest medical negligence compensation awards in the state’s history, will pay for 24-hour lifetime care for the boy, whose conditions were blamed on deprivation of oxygen for 27 minutes immediately after his birth.

The negligence claim was that the boy was not breathing spontaneously and so was put on resuscitation equipment – but this had not been assembled properly or calibrated correctly to deliver oxygen.

In August, $2.4m was awarded to Edita Siroky, who was rendered a quadriplegic after Flinders Medical Centre failed to diagnose a bacterial spinal infection.

Andrew Knox was one of 10 patients who were given incorrect chemotherapy doses at the Royal Adelaide Hospital and Flinders Medical Centre over six months from 2014.

Andrew Knox was given incorrect chemotherapy doses. Picture: Tricia Watkinson

Mr Knox, whose claim did not completely finalise for seven years, said extended timeframes were typical for cases involving malpractice.

But he said the process caused stress at a time patients were already dealing with health issues, and should be conducted faster.

“It is a very difficult thing to manage, especially for people who do not have a legal background,” he said.

Mr Knox suggested the method of calculating payouts should be changed so that patients could accept a guarantee that relevant medical expenses will be covered for the remainder of their life, instead of having expenses calculated and paid out upfront.

“We need to be able to sit down and work out a better system of compensating people who are adversely affected by the health system,” he said.

Mr Mullighan said the amounts paid included the legal fees of the patient.

He said, on average, the number of claims received and amounts paid in recent years had remained broadly consistent.

“Fluctuations occur due to the general timing and development of claims,” he said.

“Claims are paid through SAFA’s insurance fund, which is funded by premiums charged to client agencies and investment earnings”.

In a statement, a SA Health spokeswoman said clinicians provided exceptional care to patients and “we take an active approach to minimise potential incidents of medical malpractice”.

“We take all claims of medical malpractice seriously,” she said.

“As per our investigative process, an expert team is engaged to look into the details of each case and go through a formal review process.”

The spokeswoman said SAFA manages claims in accordance with government guidelines and established legal principles, and proactively engages with Local Health Networks (LHNs) throughout the claims process.

“LHNs are then able to use this, and information gained from any formal reviews, to assist with any learnings for medical staff,” she said.

Medical negligence is primarily determined by the Australian Health Practitioner Regulation Agency, and restrictions such deregistration can be imposed.

Following that, an employee can be disciplined or sacked by SA Health – but matters are considered on a case-by-case basis.