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AMA / Access Economics Federal Budget Report

AMA President, Dr Kerryn Phelps, today released an Access Economics report on the 2002 Federal Health Budget.

The report - prepared by Access Economics Associate Director, Roger Kilham - was presented to the AMA Federal Council at its meeting in Canberra this morning.

Dr Phelps said the report echoes the AMA response to the Health Budget on Budget night.

"The good things in the Health Budget were drowned out by the big hit on the Pharmaceutical Benefits Scheme (PBS)," Dr Phelps said.

"It is the AMA view that the higher patient co-payments for PBS drugs will further disadvantage the poorest and the sickest in the community.

"Stated intentions to place more bureaucratic restrictions on doctor prescribing will be opposed by the AMA because of possible interference in clinical judgements by doctors.

"The PBS cuts are at odds with international trends and research.

"Studies in the USA and Canada have shown that increased Government pharmaceutical expenditure results in reduced hospital care expenditure.

"It is better to improve patient care and enhance quality of life through a well-managed PBS than to have our hospitals and accident and emergency departments overcrowded and unable to cope further down the track.

"The Government should not be seeking Budget savings through cutting the preventive end of the public health budget," Dr Phelps said.

Dr Phelps said Health Budget 2000 had delivered little for Australian GPs, other than the previously announced and welcome outer-suburban GP initiatives. However, the Government has committed more funds to aged care, honouring election commitments.

Other important areas neglected in the Budget were the Relative Value Study (RVS) and the Medicare Benefits Schedule (MBS), Indigenous Health, public hospitals, and funding for tobacco, alcohol and drug control and prevention programs.

The report can be accessed on the AMA website.

23 May 2002

CONTACT: John Flannery (02) 6270 5477 / (0419) 494 761

Sarah Crichton (02) 6270 5472 / (0419) 440 076

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