Dr Kerryn Phelps, AMA President, Interview with Win TV News

PHELPS: The health system is facing massive difficulties related to the problems with medical indemnity insurance. We're facing the loss of obstetricians, we're seeing general practitioners giving up on procedures, and we're seeing difficulty getting neurosurgeons to train for the specialty. And so we are starting to see loss of essential services, not only in rural areas, but also in metropolitan areas.

JOURNALIST: Moving away from the specialists, I understand there are also concerns just for regular GPs?

PHELPS: There are concerns for general practitioners because GPs are currently expected to cross-subsidise the higher risk specialists. It's also very difficult from a GP's point of view, if we don't have these essential services like obstetrics to refer to. Similarly, it's difficult for GPs who are conducting procedures like anaesthetics, or obstetrics or surgery themselves, particularly doctors working in the bush, because their indemnity premiums have blown out, too.

JOURNALIST: There were reports in The Canberra Times this morning that some doctors are being forced to retire early. Do you agree with this?

PHELPS: There is no question that doctors are being forced to retire early, because of the size of the medical indemnity premium. If you look at a doctor who is perhaps winding down their practice, they're looking at the next few years at retiring, and they get hit for a bill of for $120,000 what are you going to do? They just say, 'it's just easier for me to retire early'.

JOURNALIST: What are some of the problems within United Medical Protection, that I understand covers about 60 percent of the doctors?

PHELPS: United Medical Protection covers about 60 percent of Australia's doctors, and it's particularly the case in New South Wales, where it covers about 90 percent of New South Wales doctors. United Medical Protection is a reflection of the greater malaise in the whole medical negligence area. And that is a cumbersome legal system. It's expensive, it's time consuming, it lacks the elements of social justice so that the people who perhaps are in most need of long term care are not necessarily getting it. People have to go through protracted legal battles, the expense of the system is enormous, and so that cost is being passed on to doctors, who have to pass it on to patients, so ultimately patients are losing out. Because they're not getting the services that they need, and they're also having to pay more for their medical costs.

JOURNALIST: If there is no solution in the very near future, is there a chance that United would fold?

PHELPS: The Federal Government, $35 million, capital guarantee that they announced just before Easter is an important short-term life line. But that's all it is, it's just a short-term measure. The whole situation has to be reviewed again on the 30th of June. Unless we get fundamental reform of the way medical negligence is handled by our legal system, then we are going to be facing a disaster. The system is unsustainable.

JOURNALIST: What would you like to see done?

PHELPS: We need to see a very comprehensive national approach. We have to see tort law reform in every State, similar to the reforms that were put through in New South Wales last year. And we have to see a national approach with the legislation to enable structured settlements going through in the next sitting of parliament, and we also want to see a national statutory scheme for the care and rehabilitation of people who are severely injured in medical accidents.

JOURNALIST: Just finally, how urgent are these solutions?

PHELPS: The situation is very urgent. We need to have solutions, and quickly, within months, otherwise we are going to see a looming disaster upon us. This is like a tidal wave heading across the country, which will eventually, sooner or later, impact on every patient and every doctor.

Ends