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Government's medical indemnity package is still 'a work in progress' - AMA

In welcoming the Government's medical indemnity package, AMA President, Dr Kerryn Phelps, said today that the positive short term outcomes still require an ongoing commitment from the Commonwealth and State Governments to provide a workable solution into the future.

Dr Phelps said the package announced today by the Prime Minister is a work in progress.

"The AMA believes today's package provides sufficient guarantees for doctors to continue working and, pending court approval, to enable them to renew their insurance contracts with United Medical Protection/AMIL," Dr Phelps said.

"The Federal Government has extended their guarantee but on a claims made basis by six months, and has provided a guarantee in perpetuity on any 'tail' incurred by doctors for the period up to 1 January 2001.

"They have also put in place measures to enable UMP to stay in business, at least until 31 December 2002, something the AMA has called for all along. We have assurances from the Government that APRA requirements will not be an impediment to the continuation of UMP."

Dr Phelps said the AMA would be seeking more detail from the Government about plans to impose a levy on doctors to help cover UMP's standing IBNR.

"We will be telling the Government that any costs imposed on doctors will inevitably be passed on to patients, either through the Medicare Benefits Schedule, private health insurance premiums or consultation fees.

"A levy will not relieve the pressure on high-risk specialties like obstetrics, neurosurgery or orthopaedics. Any premium increases for these doctors will lead to a workforce shortage, particularly in rural and regional Australia."

The Government has indicated a willingness to consider subsidisation of high-cost specialties.

Dr Phelps said the AMA will seek urgent talks with Government to discuss what is missing from today's package - national tort law reform, a national care and rehabilitation scheme for the severely injured, and a statute of limitations on 'medical negligence' claims (once an agreed national definition of 'medical negligence' has been reached).

"This is a national problem that will involve unprecedented cooperation between the Commonwealth and State Governments," Dr Phelps said.

"Today is a good start but there is much more to do."

CONTACT: John Flannery (02) 6270 5477 / (0419) 494 761

Sarah Crichton (02) 6270 5472 / (0419) 440 076

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