Australasian Medical Insurance Ltd (AMIL) - Federal Government must step in to restore confidence in medical indemnity insurance
News tonight that the Australian Prudential Regulation Authority (APRA) has directed Australasian Medical Insurance Ltd (AMIL) to raise capital by 30 June 2002 to meet legal requirements is a major concern to all Australian doctors and their patients.
AMIL is a subsidiary of United Medical Protection (UMP), Australia's largest medical defence organisation, and covers over 60 per cent of Australia's doctors.
AMA President, Dr Kerryn Phelps, said tonight that UMP was the insurer of last resort for doctors and the Federal Government should step in to manage the situation to provide certainty and security for patients.
"The medical indemnity crisis has been building for some time and has now reached a crescendo," Dr Phelps said.
"Tonight's announcement is a clear signal that the medical indemnity system cannot continue in its present form.
"It is an industry-wide problem.
"It is time for fundamental reform of the legal system in regard to medical indemnity.
"To provide proper protection for patients, one option would be to implement a statutory compensation and rehabilitation scheme similar to that for motor vehicle accidents.
"The immediate problem is to ensure that no medical services or procedures are lost to patients.
"The AMA and the medical profession will work with the Federal Government to develop an outcome to protect the community," Dr Phelps said.
CONTACT: John Flannery (02) 6270 5477 / (0419) 494 761