The Auditor General for Wales, Sir John Bourn, has told the national assembly that the growing problem of clinical negligence is costing the NHS in Wales substantial sums each year.

The NHS in Wales paid out £27 million in 1999-2000 on settling clinical negligence cases. In addition, at the end of March 2000 there were over 1600 outstanding cases. The National Audit Office for Wales estimated that these cases are likely to cost a further £107 million - excluding the unknown costs of additional care, which could prove substantial.

A decision by the Court of Appeal has recently increased the level of damages awarded in such cases and reforms aimed at speeding up the legal system are likely to mean that cases currently in the system will be resolved more rapidly, warned the NAO.