Independent Review of Major Health Indemnity Insurer
The nation's largest medical indemnity organisation, United Medical Protection (UMP), has agreed to a request from Australian Medical Association President, Dr Kerryn Phelps, for an independent review of its financial situation.
The request for the review stemmed from the call by UMP on doctors for substantial additional funds to cover rapidly escalating costs of medical injury claims.
"We must be sure that doctors are adequately covered at a cost that is based on a realistic assessment of the situation," Dr Phelps said.
"If medical indemnity costs are out of control this must be addressed urgently by the profession and governments, or the public will lose access to key specialists, such as obstetricians and neurosurgeons, particularly in rural areas.
"The medical indemnity organisations have the data and analysis on what is happening to claims and costs.
"This must be brought out by a properly constituted, transparent and independent review.
"Our members expect nothing less as they face sharply rising costs, lower incomes and pressure to either withdraw some services or increase charges to cover massive hikes in medical indemnity premiums.
"Governments must act urgently to develop indemnity arrangements which reduce legal costs for patients and doctors.
"This review of UMP will highlight the specific problems that must be addressed," Dr Phelps said.