Figures released by the Department of Health and Human Services have shown the state paid out nearly $2 million in settlement costs for malpractice claims last financial year.

The Examiner understands the two most expensive claims from last year - settlements totalling at least $1.3 million - involved the North West Regional Hospital at Burnie and the Launceston General Hospital.

The total settlement costs for the LGH was just over $860,000 last financial year, with the North West Regional Hospital at Burnie paying out just over $890,000.

While the number of claims settled last financial year had dropped from the previous year - 14 compared with 23 in 2007-08 - the actual total cost of the settlements skyrocketed, from just over $500,000 in 2007-08 to more than $1.9 million.

Legal costs - which include costs incurred through the office of the DPP on behalf of the Health Department as well as third party legal costs where judgements were awarded in favour of the claimants - went from more than $1.4 million in 2007-08 to just over $50,000 last financial year.

The department said the bulk of the legal costs in 2007-08 went to third-party legal costs, with costs that year involving cases that were up to four-years-old.

Individual case fees ranged from a few hundred dollars to in excess of $500,000.

Dr Chris Middleton, of the Australian Medical Association, said that while it was a considerable sum of money, Tasmania appeared to be faring better than some other states in terms of the size of payouts.

"It's around four million out of more than $2 billion for health services (over two years) - so it works out to under 0.2 per cent of the total budget," Dr Middleton said.

"It's still a lot of money in anybody's language ... but when you look at some of the huge payouts that occur interstate and overseas - $4million to $6 million - perhaps Tasmania's doing rather well comparatively."

When a settlement is reached in a malpractice claim involving a Tasmanian public hospital, the Department of Health and Human Services pays $50,000 in excess.

The remainder comes from the taxpayer-funded Tasmanian Risk Management Fund, which manages insurance liabilities for government departments in cases of personal injury, property, liability, medical liability and travel.