Major gaps in medical indemnity package - AMA seeking further assurances from Government

AMA President, Dr Kerryn Phelps, said today that major gaps remain in the Government's medical indemnity package. In light of numerous queries and fears being raised by grassroots doctors all around Australia, Dr Phelps said the AMA cannot recommend the Government's indemnity package to AMA members as a solution to the indemnity crisis. "As it stands, the package does not provide for cover for doctors who wish to retire, nor does it provide for future settlement of large claims," Dr Phelps said. "Doctors and patients must have security for the future - security to stay in medical practice and security that communities will continue to have accessible and affordable medical services. "The medical indemnity bills introduced to the Parliament this week go some way towards easing the crisis, but concerns remain over the medical indemnity insurance cap and the possibility that disabled or retired doctors will face heavy premiums for years after they leave practice. "The AMA recently wrote to the Prime Minister highlighting these concerns. "Around half Australia's working doctors (25,000) are due to renew their indemnity insurance on 1 January 2003, but they will not be able to do so with any certainty because of confusion over the appropriate insurance limit they would need to seek cover for. "If a claim was made against a doctor in 2003, for example, but not settled until many years later, the final settlement may be a lot more than the medical indemnity insurance cap that applied in 2003. "It would be difficult for doctors to continue to practice if they were not confident they had adequate cover into the future. "Doctors who become disabled or retire face huge problems as the legislation stands. "They face the prospect of being forced to pay heavy premiums for many years after leaving practice to cover claims from their working life that may appear years down the track. "There are flaws in the legislation because it is impossible for doctors to estimate or buy insurance for claims that may not materialise for settlement for many years. "In this circumstance, doctors would have three options - leave medical practice altogether, pay minimal insurance cover while divesting their assets, or move to the public sector making the Government liable for their claims. "If doctors were forced to divest their assets, patients would have no recourse for care and rehabilitation for adverse events. "The AMA is calling on the Government to take some urgent and important steps to ensure their legislation is effective in calming the medical indemnity crisis: Introduce a community-funded long-term care and rehabilitation scheme for severely injured patients Ensure nationally coordinated consistent and effective tort law reform Convert the high cost claims scheme from the Government paying 50 per cent of the margin between $2 million and the insurance cap to a scheme whereby all settlements and awards over a specified amount (somewhere between $5 million and $10 million), and all claims made outside five years, are paid by the Commonwealth. "It is the AMA's view that action on these fronts is vital to allow doctors to approach their New Year insurance renewals with confidence and to assure patients that the medical indemnity situation is under control and their medical services are not under threat," Dr Phelps said. CONTACT: John Flannery (02) 6270 5477 / (0419) 494 761 Judith Tokley (02) 6270 5471 / (0408) 824 306