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Court 'rubber stamps' Government's medical indemnity 'guarantee' - now for the long-term solution

AMA President, Dr Kerryn Phelps, said today that the NSW Supreme Court's approval of the Government's extended medical indemnity guarantee paves the way for the development of a long-term solution to the crisis.

UMP can now issue renewal notices, and Dr Phelps said the AMA would continue to work closely with the Government and UMP's Provisional Liquidator, Mr David Lombe, to provide security for the long term for doctors and their patients.

"While the future of the medical indemnity industry revolves around the issue of IBNRs, the AMA still has serious concerns about the government's proposed levy on doctors to cover unfunded IBNR claims," Dr Phelps said.

"Just as the Government says the medical indemnity crisis is not of its making, nor is it a result of actions by doctors.

"Medical indemnity and public liability are problems that are affecting the provision of medical services to the whole community and require a community response.

"Putting an unfair cost burden on individual doctors would lead to doctors leaving the profession and increase the cost of health care for patients.

"The Government must understand that a levy on doctors may look an attractive option for the short term, but patients will not take kindly to unaffordable health care. The Government cannot proceed with the levy in the absence of long-term reforms to contain the IBNR and future premium rises."

Dr Phelps said many doctors, particularly in rural and regional Australia, remain uncertain about their individual situations following the UMP collapse and the introduction of the Government's 'guarantee'.

"The AMA has organised an interactive satellite broadcast to an expected audience of around 8000 doctors tonight," Dr Phelps said.

"An expert panel will explain the latest developments in the medical indemnity saga and answer questions that doctors may have about the future of their practices," Dr Phelps said.

Dr Phelps will be joined by Federal Health Minister, Senator Kay Patterson; President of the Rural Doctors Association of Australia (RDAA), Dr Ken Mackey; and UMP Provisional Liquidator, Mr David Lombe, on tonight's broadcast between 8.00pm-10.00pm (AEST).

The broadcast will be via the resources of the Rural Health Education Foundation.

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

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