The chief medical officer has recommended a major overhaul of the way clinical negligence cases are treated in the NHS.

Professor Sir Liam Donaldson said in a report, released on Monday, that a new body will be set up to investigate incidences of mistreatment.

The "NHS Redress Scheme" will also provide remedial treatment, rehabilitation and care, explanations of and apologies for mistakes and financial compensation "where appropriate".

Donaldson urged that a national body, including the already existing NHS Litigation Authority, should oversee the new redress scheme and manage its financial compensation work.

And among a total of 19 recommendations, he also suggested that a "duty of candour" and exemption from disciplinary action should be introduced for NHS staff when they are reporting incidents concerning patient safety

"Patients deserve to receive high quality healthcare from their NHS," Donaldson said.

"And for the vast majority of the millions of people treated every year, the NHS provides excellent, effective healthcare.

"However, patients occasionally do not receive the treatment they should, and mistakes are sometimes made. Patients deserve to be told what has happened when things go wrong, and to be compensated if appropriate."

Following two years of extensive consultations, Donaldson's proposals will form the basis of a government policy document on the issue later in the year.

"We know that cases take too long to settle, that more is spent on legal costs than in compensation in many cases and that many complainants are left fundamentally dissatisfied for what are really very simple reasons," he said.

"For many, it is not the size of any compensation that matters so much as an apology, an explanation and, vitally, evidence that something is being done to minimise the risk of a similar problem happening in the future.

"For too long, we have tended to look at clinical negligence in isolation, but effective handling of clinical negligence claims is part of delivering a better quality health service.

"Where mistakes are made we must learn from them and use them as a driver for change."