Structured settlements a win-win outcome for doctors and patients - AMA
AMA President, Dr Kerryn Phelps, said today that doctors and patients alike will be applauding today's Federal Government decision to make structured settlements for accident victims tax free in the same manner as lump sum payments.
The decision, announced today by Assistant Treasurer, Rod Kemp, will involve changes to taxation legislation.
Dr Phelps said the decision is good for patients and doctors.
"Payments for medical injury can now be tailored to the long term needs of patients, based on the individual needs of each patient, their families and their carers," Dr Phelps said.
"It will provide a much-needed alternative to the huge lump sum awards that are often quickly dissipated but which contribute to massive increases in medical indemnity insurance premiums and patient costs.
"Patients will have greater security for long term care and recovery.
"Doctors will have greater security in being able to continue to provide important medical services to their communities.
"Hopefully this decision will help stop the flow of doctors from certain communities, particularly in rural and regional Australia, where crippling medical indemnity costs have forced some specialist services, especially obstetrics, to disappear from the scene."
Dr Phelps said the efforts of the Structured Settlements Group (SSG), the AMA Medical Indemnity Task Force, and recent direct lobbying of Government by the Chairman of the AMA Federal Council, Dr Michael Sedgley, and officers of the Federal AMA must not be underestimated.
"At last the Federal Government has acknowledged its role and responsibility in the medical indemnity crisis," Dr Phelps said.
"It is now up to all the State and Territory Governments and the Medical Defence Organisations (MDOs) to take advantage of this breakthrough to provide lasting security and support for patients and the preservation of medical services in the areas where they are most needed," Dr Phelps said.
CONTACT: John Flannery (02) 6270 5477 / (0419) 494 761
Sarah Crichton (02) 6270 5472 / (0419) 440 076