Health · Healthcare & Policy · 1 day ago
Victorian public hospital compensation payouts reach $254 million
Victoria paid a record $254 million in compensation to patients harmed in public hospitals last financial year.
Payments have more than quadrupled in a decade, and the state insurer has paid more than $1.1 billion since 2015/16.
Obstetrics has the highest total claim costs relative to the number of services, partly because an incident can injure both a woman and her baby.
Lawyers and doctors say understaffing, population growth and greater awareness of birth trauma and legal rights are contributing to the rise.
Shane Robertson says he became blind in one eye after a cataract procedure at University Hospital Geelong in September 2025.
Barwon Health said it regretted the rare, known complication and that its clinical team had reviewed his care; Robertson is seeking compensation.
The state insurer says claims can take time to resolve because the full extent of an injury may not be clear straight away.
Compensation payouts for patients harmed in Victorian public hospitals reached a record $254 million last financial year.
The state government’s insurer has spent more than $1.1 billion on settlements for injured public hospital patients and their relatives since 2015/16.
The number of payouts nearly doubled over the past decade, reaching 723 in 2024/25.
Obstetrics had the highest total costs of claims relative to the volume of services.
Lawyers and doctors cited understaffing, population growth and greater awareness of birth trauma, mental health and legal rights as factors behind the increase.
Shane Robertson says he lost vision in one eye after a cataract procedure at University Hospital Geelong in September 2025.
- Who
- Patients harmed in Victorian public hospitals and their relatives, whose claims are paid by the state government’s insurer.
- What
- Compensation payouts reached a record $254 million last financial year.
- When
- Last financial year; the article says the number of payouts reached 723 in 2024/25.
- Where
- Public hospitals in Victoria, Australia.
- Why
- Lawyers and doctors cited understaffing, population growth and greater awareness of birth trauma, mental health and legal rights.
This story does not have two clearly opposing sides.
There are more people attending hospitals, and therefore more opportunities for things to go wrong
It was like looking through a glass of blood
this rare and known complication
It can take time for the full extent of an injury to become apparent and stabilise sufficiently for a legal claim to be brought, especially when the injury is to a newborn
The state government’s insurer began the period over which it has since spent more than $1.1 billion on settlements.
Shane Robertson underwent cataract surgery at University Hospital Geelong and woke with no vision in his right eye.
The state insurer made 723 payments as part of medical negligence claims.
Compensation payouts for patients harmed in Victorian public hospitals reached $254 million.
- Total payouts
- $254 million last financial year
- Settlements since 2015/16
- More than $1.1 billion
- Number of payouts
- 723 in 2024/25
- Highest-cost specialty
- Obstetrics relative to the volume of services
- Robertson’s surgery
- University Hospital Geelong, September 2025
Sources
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