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Tough Penalties Under New Rural Doctor Scholarships Scheme

The AMA has acknowledged the Government's attempt to boost rural doctor numbers through its new rural medical bonded scholarships scheme but has raised concerns about the scheme's tough provisions regarding breach of contract.

AMA Federal President, Dr Kerryn Phelps, said legislation passed in the Senate this week

enforced draconian penalty arrangements for doctors who may breach their contractual obligations to serve in rural areas.

"The scheme was a key plank in the AMA's blueprint to get more doctors into the bush. Now we're concerned about the hardship this will cause young doctors who are forced to accept the penalties under this legislation," Dr Phelps said.

"Although the AMA won some important concessions in the Senate this week to make the scholarships contract fairer, we are still left with a situation where doctors in breach of contract will have their Medicare provider numbers withdrawn for up to 12 years."

Dr Phelps said the AMA was also concerned that the Health Insurance Amendment (Rural and Remote Area Medical Practitioners) Bill 2000 was not restricted to the new rural medical bonded scholarships scheme, but instead extended government powers to other rural medical contracts.

"The wording in this legislation is so broad, it gives government the right to ban doctors from accessing Medicare provider numbers where any rural medical contract is breached," Dr Phelps said.

Dr Phelps said the AMA would be vigilantly monitoring the Government's application of the new penalty law.

"We are preparing an information package for scholarship applicants so that they are fully aware of their obligations under the scheme," she said.

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