Page 159 - Pharmacy Appeals 1/4/04 to 31/3/05

NHS Resolution Annual report and accounts 2021/22 135

CNSGP CNSC CTIS DHSC PES LTPS Total
non-clinical
£0 0 0 s
£0 0 0 s £0 0 0 s £0 0 0 s £0 0 0 s £0 0 0 s £0 0 0 s

427 0 0 9 0 26 347,620

58,235 125 0 15,341 10,016 69,701 9,304,759

(5,821) 0 0 (2,099) (1,317) (23,809) (3,130,544)

17,141 3 0 14,916 (39) (6,394) 42,623,207

136,000 13,000 0 0 (1, 0 0 0 ) (25,000) (3,378,795)

205,555 13,128 0 28,158 7,660 14,498 45,418,628

205,982 13,128 0 28,167 7,660 14,524 45,766,248

Timing of cashflows - known claims provisions
The known claims provision calculation (described later in
this note) uses the expected settlement date (ESD) from
individual claims recorded in the Claims Management
System (CMS) to apply inflation and discounting to
reach a valuation. However, for the disclosure of the
expected timing of cashflows, this has historically been
based on an actuarial view of settlement patterns.

As at 31 March 2022, these two views had diverged
considerably, most likely due to the effect of the Covid-19
pandemic on the health and legal environments, and
as a result, an adjustment increasing the provision by
£4.6 billion gross (£2.2 billion net after allowing for the
prior period adjustment) has been made to the known
claims provision calculation for the 2021/22 financial
year. A prior year adjustment has also been made to
the accounts, details of which are provided at Note 7.4.
This issue highlights the uncertainty in the claims
environment in relation to when individual claims
are likely to settle, the impact that disruptive
forces may have on the individual judgements on
timing of settlements, and the sensitivity of the
value of the provision to payment patterns.