Government's further measures on medical indemnity are positive but fall short of a workable long-term solution - AMA
The Government's medical indemnity package remains a 'work in progress' with more to be done to ensure security and certainty for doctors and patients for the long term, AMA President, Dr Kerryn Phelps, said today.
Dr Phelps said the Government's package is a step forward in the prudential regulation of the Medical Defence Organisation (MDO) industry, but it fails to deal with key concerns raised by the AMA in numerous meetings with the Government and officials.
"It will certainly help guard against company collapses and provide a degree of certainty of cover for MDO members, but it still leaves doctors in a precarious position - especially in regard to the so-called 'blue sky' problem," Dr Phelps said.
"Under the Government's legislation, doctors must take out insurance policies that are capped at a specified level - say, $15 million.
"But if there is an award or settlement over the insured amount, the doctor would be personally liable for the 'blue sky' amount over that figure.
"While $15 million may look sufficient today, it may be inadequate in 10 or 20 years time when some of today's claims are settled, given that most State and Territory Governments have failed to progress tort law reforms sufficiently, particularly Statute of Limitations. 'Blue sky' claims will be rare but inevitable. The Government's high cost claim scheme should reflect this. It doesn't.
"The AMA is also disappointed that the Government has not substantially progressed the long-term care and rehabilitation scheme for severely injured patients, which is the key to managing medical indemnity costs into the future.
"On the positive side, we welcome the Government's study of the AMA proposal to cover doctors in retirement.
"The additional premium subsidy for rural obstetricians is a further recognition of the problems of rural medicine.
"Overall, today's package is disappointing because doctors will be paying more for their indemnity cover in most cases to cover higher capital and tax costs, and the 'blue sky' and long term care and rehabilitation issues have been largely ignored.
"The AMA will continue to push for improvements in the package,' Dr Phelps said.
CONTACT: John Flannery (02) 6270 5477 / (0419) 494 761