One concern I have about creating a fund for "medical errors" is that if hospitals etc. don't have to pay for their mistakes, there is less incentive for them to avoid them.
Far too often $$$ is the only reason corporations do the right thing.
I do think that expenses could be reduced if we could get rid of nonsense malpractice suits and the ridonkulous cost of malpractice insurance, but I don't know exactly HOW to do that.
A cap on punitive damages would be a place to start. I don't like the pool idea either for many of the same reasons I don't want government run healthcare.