The number of claims made against the NHS for clinical negligence has risen by 9% in the last year, as new figures show the taxpayer is liable for up to £15bn in such payouts.
Data released by the Department of Health show the number of claims has jumped by 9% since 2010, with almost one fifth of law suits relating to unnecessary operations or amputations.
It comes as the Public Accounts Committee data also revealed the taxpayer is potentially liable for £15.7bn in clinical negligence claims, according to government accounts for 2009-10.
Margaret Hodge, head of the committee told HuffPost UK: "Another staggering figure is the potential bill of £15bn on outstanding medical negligence claims. It's one heck of a lot of money."
In the last year, the government paid out £500m for medical negligence claims.
Katherine Murphy, Chief Executive of the Patients Association said it was "scandalous" that as £20bn of savings were being forced on the NHS, millions of pounds were "being squandered compensating existing patients".
"Once clinical negligence has occurred, many patients say that they don't want to take legal action against the hospital but feel that it is their only form of redress because the complaints system is not sufficiently robust.
"It is scandalous, in the context of the £20bn efficiency savings being forced on the NHS, that so much money is being squandered compensating existing patients. There needs to be a focus on cutting negligent treatment so that money can go on treating new patients."
Dr Stephanie Bown, director of the Medical Protection Society said claims were increasing for a number of factors, such as rising patient expectations and doctors who "over-promise."
"I'm not aware of any evidence to suggest doctors are less careful than they used to be. It is probably multiple factors. When we talk about the cost of clinical negligence it's important to understand that there are two components to the cost, one is the number of claims and the second is the level of compensation that is being awarded."
A Department of Health spokesperson said: "The vast majority of the millions of people treated by the NHS every year experience good quality, safe and effective care. However, if patients do not receive the treatment they should and mistakes are made, it is right that they are entitled to compensation and the NHS Litigation Authority plays a vital role in ensuring that claims are settled as swiftly as possible.
"The government's ambitious proposals for reforming the civil litigation system will support the NHS in dealing with costly litigation cases. We want to strike the right balance between access to compensation claims and ensuring that costs are proportionate, sustainable and affordable."
Emma Boon, campaigns director of the Taxpayers' Alliance welcomed the government's transparency over the figures.
"Greater transparency will make it easier for members of the public to hold the government to account. Taxpayers have a right to know what big financial decisions mean and it should be clear what our liabilities are for things like public service pensions and PFI.”