Families who lost babies at Bacchus Marsh Hospital receiving compensation

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Families of babies who died potentially unnecessary deaths at Bacchus Marsh Hospital are accepting payouts from the state’s insurer amid predictions that the medical negligence scandal could cost Victoria hundreds of millions of dollars.

Bacchus Marsh and Melton Regional Hospital.
Bacchus Marsh and Melton Regional Hospital. 

As dozens of families explore legal action against Djerriwarrh Health Service’s maternity unit, Maurice Blackburn Principal Kathryn Booth said two of her firm’s clients had settled cases with the Victorian Managed Insurance Authority, which covers public hospitals.

The two families had babies who died at the hospital between 2013 and 2014 – the period during which eminent obstetrician Euan Wallace found seven deaths could have been avoided.

The details of the settlements are confidential but Ms Booth said in the past families affected by avoidable stillbirth and neonatal death had received between $100,000 and $250,000 for their pain and suffering. If they have not been able to work, they can receive more.

In contrast, families with babies that sustained preventable brain injuries can receive millions of dollars to cover their pain and suffering, as well as the costs of caring for their child throughout their lifetime.

Three medical negligence law firms are now managing dozens of cases related to Djerriwarrh Health Service, including many which occurred before 2013. They say these include stillbirths, neonatal deaths, and injuries to mothers and babies.

While Victorian Health Minister Jill Hennessy has asked Professor Wallace to examine stillbirths and neonatal deaths at the hospital between 2001 and 2012, lawyers are now calling for the government to order a review of injuries, too.

Ms Booth, whose firm has received more than 50 inquiries regarding Bacchus Marsh spanning three decades, said given that Professor Wallace had raised concerns about fetal monitoring in his review of deaths, it was possible the same failings caused distressing brain injuries for babies.

“Whether the baby is seriously injured or stillborn, this can arise from the same sort of mismanagement,” she said.

Paula Shelton, of Shine Lawyers, agreed, saying the seven stillbirths and neonatal deaths identified by Professor Wallace’s review of cases in 2013 and 2014 were likely to be the “tip of the iceberg”.

“You can guarantee that if there has been that many deaths, there’s a hell of a lot more non-fatal outcomes. If there are lessons to be learnt from the deaths, there are lessons to be learnt from the injuries too,” she said.

Anne Shortall, of Slater and Gordon, said her firm was investigating close to 20 complaints about Djerriwarrh Health Service dating as far back as the 1990s, and she believed there could be more. She also called for the government to expand its review to include injuries before 2013 and 2014.

“If there were problems with clinical governance at the hospital and standard of care provided, that could have gone to a number of different issues … we are not confining our investigations to a period of time,” she said.

In 2015, data revealing an unusual spike in stillbirths and neonatal deaths at the hospital triggered an investigation which found there was misuse and misinterpretation of fetal surveillance; inadequate staffing to support midwifery education; a lack of out-of-hours and emergency paediatric cover for neonatal resuscitation; and a lack of formal expert multidisciplinary review of deaths and injuries in the maternity unit.

During the 2013 and 2014 period, Dr Surinder Parhar was the director of obstetrics. He had been working at the hospital for more than 30 years. 

A spokeswoman for Health Minister Jill Hennessy said she had no plans to ask Professor Wallace to review injuries sustained at Djerriwarrh Health Service before 2013. 

“We encourage anyone who gave birth at Djerriwarrh and has concerns that failures in clinical care resulted in their children experiencing disabilities or other health issues to contact the Health Services Commissioner for a full independent investigation,” she said. 

“A dedicated conciliator has been established within the Office of the Health Services Commissioner for explicitly this purpose. We have also set up a support line – 1800 675 398 – to offer advice and counselling to those families who need it.”

Ms Hennessy previously told the ABC that “the data is much easier to assess around perinatal deaths”.