Medical indemnity premiums - worst fears realised
AMA President, Dr Kerryn Phelps, said today that medical indemnity subscription renewals for 2002 issued by United Medical Protection (UMP) confirm the worst fears of the AMA and the medical profession.
Dr Phelps said subscription increases ranging from 36 per cent to 123 per cent have elevated medical indemnity to a matter of national urgency.
"These are massive increases that will strike at the viability of many doctors and threaten the ongoing provision of certain medical services in some communities," Dr Phelps said.
"Medical indemnity is no longer an issue confined to the medical profession," Dr Phelps said.
"It is now a problem that affects the whole Australian community and requires urgent and decisive action from all Australian governments in a united and bipartisan manner.
"The decision we face is whether the cost of medical indemnity is borne by the sickest in the community through increased medical costs or whether a solution is found that shares the cost and the responsibility across the whole community.
"While the NSW Government's Health Care Liability Act has managed to cap high risk subscriptions for specialties such as obstetrics and neurosurgery, cross-subsidisation is not the answer.
"It is a short term fix that does not solve the problem. It merely delays the inevitable harsher impact of the problem.
"At the core of the problem is the current litigation system which is inefficient and expensive, with around two-thirds of compensation payouts being swallowed up by lawyers and administration.
"GPs and low risk specialties are paying increases of between 53 per cent and 123 per cent to rein in premiums for the higher risk categories.
"These increases are untenable.
"Many doctors, especially rural doctors and those nearing retirement, may now choose early retirement, moving out of high-risk specialties, or setting up practice elsewhere - unavoidable options that will see some communities disadvantaged in regard to the provision and availability of important health services.
"The AMA is calling for political leadership for a bipartisan national solution to a genuine health crisis in the Australian community," Dr Phelps said.
CONTACT: John Flannery (02) 6270 5477 / (0419) 494 761