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Joint Statement by Assistant Treasurer, Senator Helen Coonan and AMA Federal President, Dr Kerryn Phelps, Sydney

Following a meeting in Sydney today between Assistant Treasurer, Senator Helen Coonan, AMA President, Dr Kerryn Phelps, senior advisers to the Prime Minister, and representatives of United Medical Protection, the following actions have been agreed.

  • The directors of UMP/AMIL will seek the appointment of a provisional liquidator through the courts.
  • The Government and the AMA will work with the provisional liquidator, if appointed, to explore alternatives regarding the future of United Medical Protection (UMP).
  • It has been agreed that full liquidation of UMP may not be inevitable, subject to exploring options to keep the UMP group intact.
  • The Commonwealth has agreed to give priority to the development of a national scheme for the care and rehabilitation of severely injured patients.
  • The Commonwealth, in consultation with the AMA, will draft legislation that will guarantee the short-term security of claims incurred from Monday 29 April until Sunday 30 June 2002. This legislation will be presented to Parliament before the end of June.
  • An outstanding issue of concern from today's meeting remains what happens with the so-called 'tail' - past claims. This issue will be addressed at the earliest opportunity following the appointment of the provisional liquidator.
  • The Commonwealth and the AMA will meet with the provisional liquidator in the next few days following the liquidator's initial assessment of UMP to further progress today's outcomes.
  • The AMA welcomes the Government's commitment to legislation to provide short-term security for doctors insured by UMP to continue working until 30 June.

Contacts: Senator Coonan's office: Shaun Anthony, 0438 690 305

AMA: John Flannery, 0419 494 761

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