Dr Kerryn Phelps, AMA President, Sydney
PHELPS: The AMA would like to congratulate the Government on its interim medical indemnity rescue package. We believe it goes a long way to solving the crisis but the crisis is far from over. We need to look now to the states and territories to introduce comprehensive tort law reform. Each state has gone some way, some states haven't even begun, like the Northern Territory, but most of the other states have gone some way to introducing reforms that will be necessary to solve the crisis.
QUESTION: What about the levy? They're saying there will be a levy. Any idea on how many doctors will have to pay?
PHELPS: The AMA is very firm in its previous statements that we will not accept a levy until comprehensive tort law reform is in place because we can't even estimate the size of that levy so I would hope that that can be delayed until such time as we have answers on tort law reform, state by state, and at least we now have the extension of the guarantee to UMP so that it can buy it some time to put in place structural reforms.
We also welcome the fact that there is a delay in the prudential requirements being changed for the medical defence organisations so that they have an opportunity to put in place changes that will ensure their long term viability.
QUESTION: If those tort reforms aren't as forthcoming as you would hope, just on the levy?
PHELPS: The states and territories now have a very heavy responsibility to introduce tort law reform because if they don't the crisis will move from state to state and it will be like death by a thousand cuts.
If we don't get on top of this issue now then we will lose medical services right around Australia and we need to see things like the implementation of the Ip report, where we have a statute of limitations, where we have a redefinition of the laws of negligence so that there is some fairness to both patients and to doctors in this current system.
QUESTION: Is there any indication of when the final IBNR amount for UMP will be revealed?
PHELPS: The IBNR amount for UMP is changing all the time because with every law reform and with every change that is made by federal and state governments, that IBNR will be shrinking down.
Now, for example, the Government picking up 50% of costs for long term care over $2 million, that will make a difference to the IBNR because the big cases coming up in the future, which are large and often unpredictable, are going to be assisted by the Federal Government with this particular move.
QUESTION: Are you concerned that there's going to be a backlash against doctors because taxpayers are being asked to effectively put in for doctors' medical indemnity insurance?
PHELPS: I think the community is smarter than that. They know that either the taxpayers pay or just the sick people pay and we have a universal health insurance scheme under Medicare. Part of that cost of providing that service is medical indemnity insurance and either the sickest people, that is the patients, pay on a case-by-case basis, which will lead to the dismantling of Medicare, or all taxpayers make a contribution. At this stage there is really very little cost to the taxpayer for this particular plan.
QUESTION: And just back to the levy for one moment. If it does go ahead and doctors are forced to pay a levy, is that something that will definitely be passed onto patients?
PHELPS: There's no question that any cost to a doctor of providing a service to their patients must be passed on to patients. Now, I think the fair thing, the socially just thing, is for all taxpayers to make a contribution to that cost of providing the care but, in any case, the levy will have to be included in the doctor's fees charged to a patient.
Any other questions? No? Okay, thank you all very much.
Ends