Committee of Public Accounts to examine 2021 Financial Statements of State Claims Agency

The meeting at 9.30am in Committee Room 3 of Leinster House will be joined by the Comptroller and Auditor General, Seamus McCarthy, officials from the National Treasury Management Agency (NTMA) and representatives of the Department of Health and the Health Service Executive (HSE).

During the afternoon session, beginning at 1.30pm, the Committee will consider correspondence and other business of the Committee.

PAC Cathaoirleach Deputy Brian Stanley said: “The National Treasury Management Agency manages personal injury claims, including clinical negligence claims and third-party property damage claims, on behalf of the State and delegated State authorities. It also has a risk management role, advising and assisting State bodies in minimising their claim exposures. The NTMA also manages third party costs against the State arising from all categories of litigation.

“When performing these functions the NTMA is known as the State Claims Agency, which operates its claim and risk management services through two State indemnity schemes — the Clinical Indemnity Scheme (CIS) and the General Indemnity Scheme (GIS). Since 2012, the estimated outstanding liability for CIS claims has steadily increased and by the end of 2021 was €3.4bn with almost two-thirds relating to maternity services claims. The SCA managed 11,204 active claims at end-2021, compared to 5,755 in 2012, a 95 per cent increase. The total estimated outstanding liability at end-2022 was near €5bn.

“The Committee wishes to examine the reasons for such an escalation in claims and costs to the State over the last decade, the management of the claims process and why there has been an increase in the time it takes to resolve each claim, the associated legal costs of claims, and comparisons with other jurisdictions in terms of costs of claims, legal costs and times taken to resolve cases.

“Members would also like to hear from the SCA and the HSE regarding the reporting of claim costs and why there is no requirement on delegated State authorities such as the HSE to disclose details on the estimated liability or even to acknowledge the occurrence of serious adverse events in their financial statements. Similarly, we would like to know why there is no requirement to disclose the claims experience of individual hospitals.

 “The Committee looks forward to discussing these and related matters with Mr O’Connor and his colleagues from the NTMA, and the representatives from Department of Health and the HSE.”

The meeting in Committee Room 3 can be viewed live on Oireachtas TV.

PAC is a standing committee of Dáil Éireann which focuses on ensuring public services are run efficiently and achieve value for money. Further information on the role and remit of the Committee can be found here.

Committee proceedings can also be viewed on the Houses of the Oireachtas Smartphone App, available for Apple and Android devices.