The agreements entered into in 2001 and 2002 with the Medical Protection Society were necessary at the time to avert a serious threat to the continuity of obstetric services in public and private hospitals. The period covered by these arrangements is from 1 March 2001 to 1 February 2004. As very few claims have yet emerged from this period it is difficult to come up with an accurate estimate of the value of the claims which will ultimately have to be paid. It must be borne in mind that the consultants covered by the arrangements will be co-defendants with other doctors and hospitals in these claims. The apportionment of liability, and the consequent share of the costs to be borne by the consultants, will vary from case to case. In addition, the State will benefit from the transfer of the funds established under the agreements.
Using some simplifying assumptions about the number of likely successful claims, likely average cost of settlements and share of liability the total cost to the State of settling these claims could range from €70 million to €90 million at present day values. This cost will be offset by the value of the funds to be transferred to the State. The State has made no payments to date on foot of these arrangements. My Department has been notified of a total of 21 claims which may fall to be covered by the agreements. It is difficult to say at this stage how many of these will involve the making of any payment. The funds to be transferred to the State under the agreements will be the first source used to finance the cost of settling these claims. The agreements effectively terminated on 1 February 2004 when claims against consultants were included in the clinical indemnity scheme. Discussions are continuing with the Medical Protection Society on the arrangements for the formal transfer of the balance of the funds to the State.