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Dr Kerryn Phelps, AMA President, with Linda Motram, ABC Radio, 'AM'

MOTRAM: The crisis in insurance is now threatening to put a stop to the work of neurosurgeons, with those in New South Wales warning that they may be forced to stop practising as soon as the new year if they get no assistance to meet the new rises in medical indemnity insurance. Insurance premiums for doctors and specialists have risen by more than 100 per cent in New South Wales and the ACT, sparking fears of a new benchmark for premiums in other states when they're reviewed later next year.

The Head of the Neuro-Science Department at one of Sydney's biggest hospitals warns that there will be no roster for acute neurosurgery at the hospital after January 1st when the new insurance premiums come into effect. Tanya Nolan reports.

NOLAN: The States 30 neurosurgeons say they face new medical indemnity insurance premiums of more than $100,000 from January 1st, and they're claiming the new price hikes may drive them out of the profession, leaving most of the State's largest hospitals without specialists to treat emergency head injuries over the new year holiday period.

President at the Australian Medical Association, Kerryn Phelps.

PHELPS: It's not a threat, it's reality. The fact is that neurosurgeons will have to be paying a big hike in their insurance premiums to the point where many of them will find it unaffordable to continue after January 1st. The other problem, too, is that it's very difficult to get trainees in neurosurgery to be attracted to that speciality because they know of the large up-front costs that they're going to have to pay before they enter practice.

We also need to look for a national solution. This is not just a problem for New South Wales; it's not just a problem for neurosurgeons. It has become a problem not only for the medical profession but for the entire community because what we are also seeing is a shortage - and a looming, desperate shortage in some specialties - where doctors simply don't want to take the risk of being sued and having to pay large indemnity premiums.

NOLAN: The threat comes despite a raft of legislation changes introduced by the State Government earlier this year designed to stabilise medical indemnity premiums, particularly for high risk specialities like neurosurgery. But New South Wales Health Minister Craig Knowles denies claims from the medical profession that the changes don't go far enough.

Ends

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