News

Medical Indemnity Reform: "Fast track or change tack" - AMA

Speaking at the National Press Club in Canberra today, AMA President, Dr Kerryn Phelps, warned that time is running out to get a reform agenda in place to put the brakes on the medical indemnity crisis.

Dr Phelps said the Government should examine the possibility of a national medical accident compensation scheme if other priorities such as tort law reform fail to get full support from all States and Territories, or if the reforms fail to produce stability and commonsense.

"It's time to fast track or change tack," Dr Phelps said.

"With the Government guarantee expiring on 31 December, and more than 20,000 doctors expecting premium increases of up to 50-100 per cent around the same time, we need to see some urgent action on reforms," Dr Phelps said.

"Some States, Victoria in particular, are dragging the chain on tort law reform and the Federal Government is showing little interest in a national care and rehabilitation scheme for severely injured patients.

"These are key changes if premiums are to level out and eventually decrease.

"Negotiations between the medical profession and the Federal Government are getting bogged down over a proposal to impose a levy on doctors to cover the UMP 'tail' or IBNR.

"The Government wants the levy sorted out up-front. The AMA is not prepared to even discuss a levy until all the other reforms are in place.

"Meanwhile, the clock keeps ticking over. If the reforms cannot be progressed at a suitable pace, perhaps it is time to have a look at alternative solutions to the indemnity crisis.

"As a first step, the Government must be prepared to extend its UMP guarantee to buy time to get the tort law and other reforms legislated and to have a community debate about a national accident compensation scheme.

"The AMA today introduces the idea of a national medical accident community scheme for consideration by the Government and the broader community.

"This parallel approach will provide greater certainty of a solution.

"Otherwise we run the risk of widespread chaos if the crisis is not resolved well in advance of 31 December," Dr Phelps said.

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

Media Contacts

Federal 

 02 6270 5478
 0427 209 753
 media@ama.com.au

Follow the AMA

 @ama_media
 @amapresident
‌ @AustralianMedicalAssociation