AMA calls on government to ensure security of medical indemnity industry
The AMA has today written to all Federal Ministers and Parliamentary Secretaries urging the Government to guarantee protection for patients and doctors amid fears of possible collapses of medical indemnity insurance companies.
Cabinet is believed to be discussing the matter today.
In the letter, AMA President, Dr Kerryn Phelps, said there is a serious risk that one of the major medical defence organisations (MDOs) - covering about 60 per cent of Australia's doctors - may not be able to meet the prudential requirements of the Australian Prudential Regulation Authority (APRA).
Dr Phelps warns that many doctors are choosing to retire or take on non-procedural work involving low medical indemnity costs.
"The threat of legal action and the costs of medical indemnity are the major factors causing the exodus," Dr Phelps said.
"If an MDO has to withdraw from the market, thousands of doctors, including GPs, will be unable to practise because they will have no indemnity insurance. Most patients in the State or States affected would have to rely on the public hospitals for all their health needs. This would create chaos.
"The AMA is therefore asking the Government to provide capital guarantees to ensure that none of the MDOs has to stop providing cover.
"Some breathing space is essential until a long-term solution can be negotiated among Federal and State Governments, MDOs and doctors.
"In the longer term, the current medical indemnity system is unsustainable as a consequence of mounting claims and rising legal costs," Dr Phelps said
The AMA will be seeking Government support in due course for a fundamental reform package centred on state-based reform of the legal and administrative processes and a Commonwealth initiative focussing on the care of injured patients.
Full text of the letter is attached.
CONTACT: John Flannery (02) 6270 5477 / (0419) 494 761
Sarah Crichton (02) 6270 5472 / (0419) 440 076