Record payout a call for urgent action on medical indemnity
The awarding of a record medical negligence payout in the NSW Supreme Court has elevated Australia's medical indemnity crisis to a new and dangerous level, AMA President, Dr Kerryn Phelps, said today.
Cerebral palsy sufferer, Calandre Simpson, was awarded $13 million (plus $2 million in costs). This is nearly double the previous record for such a claim.
Dr Phelps said the payout will send shockwaves through the medical profession and will have negative ramifications for the whole community.
"The most immediate impact will be on premiums for medical indemnity insurance, " Dr Phelps said.
"Premiums for obstetrics will go through the roof.
"Some specialists are already forced to consider premiums of $100,000 and $250,000 next year for insurance. These amounts will be dwarfed if payouts like today's continue.
"Many Australian communities are already without vital obstetric services.
"Today's decision will mean more and more obstetricians will give up delivering babies and this will leave few or no specialists practising obstetrics.
"It will inevitably lead to a dangerous reversal of the trend we have seen in Australia to strive for greater safety for mothers and babies in childbirth.
"Imagine a difficult birth or a caesarean with no obstetrician present.
"Delivering babies will become unaffordable and unsafe in this country.
"This is now a national crisis of the highest order.
"Commonwealth Governments - both Labor and Coalition - have ignored this problem for a decade.
"As a matter of urgency, all our Governments, State and Federal, must now work together to protect future generations of Australians," Dr Phelps said.
CONTACT: John Flannery (02) 6270 5477 / (0419) 494 761
Sarah Crichton (02) 6270 5472 / (0419) 440 076