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Medical Indemnity - the ball's in the Federal Government's court

AMA President, Dr Kerryn Phelps, said today the future of United Medical Protection (UMP) and the medical defence industry rests wholly with the Federal Government.

Dr Phelps said it has become clear today that there is a high probability that UMP will go into run-off after 30 June without Federal Government intervention.

"The Cabinet decision not to offer further assistance to ease the crisis is disappointing to say the least," Dr Phelps said.

"It seems that the human dimension of the problem has not been argued strongly enough within Government and between the responsible Ministers.

"The harsh reality is that unless something is done patients wanting to see a doctor on 1 July may find there are very few doctors in a position to consult.

"Without insurance, the pressure on doctors will be enormous, particularly if treating patients with complex ailments or requiring high-risk procedures.

"It would be mayhem. Just picture a situation without 60 per cent of Australia's - 90 per cent of NSW and Queensland's - general practitioners and other private specialists able to work.

"This is a social problem of the highest order.

"The Federal Government simply cannot turn its back on patients and communities dependent on their doctors and other health professionals.

"On the best advice we have, UMP is unsustainable beyond 30 June without Federal Government support and immediate implementation of long-term reforms.

"The situation is fluid as long as the Federal Government's final position is not known and UMP's short-term future remains under a very big dark cloud.

"In those circumstances, the AMA is presently unable to advise members and other doctors what action they should be taking about their medical insurance.

"We need to know urgently how the Government proposes to ensure that medical services remain available should UMP hit the wall.

"In the final analysis, they must guarantee that compensation will be available to patients at a cost that is manageable for doctors and the community," Dr Phelps said.

CONTACT: John Flannery (02) 6270 5477 / (0419) 494 761

Sarah Crichton (02) 6270 5472 / (0419) 440 076

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