MDDUS has announced that it has concluded an agreement to transfer its existing liabilities for the NHS activities of English GPs to the UK Government.
MDDUS has consistently questioned the principle of the Existing Liabilities Scheme, not least because MDDUS remains more than fully funded for all its known liabilities and its best estimate of our incurred but not yet reported liabilities.
Nevertheless, as the UK Government has already concluded a similar deal with one of our competitors and in the light of potential behavioural and market changes as the Clinical Negligence Scheme for GPs beds down, the Board has concluded that the balance of advantage now lies in de-risking this part of our portfolio, to enable it to better manage other existing services and liabilities and, importantly, to expand the breadth and depth of our offerings to all of our current and potential members.
The Board believes that the contractual arrangements entered into to achieve this are in the interests of the membership as a whole and that it has secured, in consultation with its advisers, Ernst and Young, a reasonable price for the transfer of liabilities.
The transfer will be implemented via a statutory Scheme of Arrangement about which MDDUS will write to members at the turn of the year.