Medical indemnity like a three-legged dog - Glasson

"Australia's medical indemnity system is like a three-legged dog," Dr Glasson said.

"Its progress is slow and uncertain and it could fall over at any time.

"The missing leg is affordability.

"Contrary to claims yesterday by Assistant Treasurer, Senator Helen Coonan, that the new system would make premiums 'more affordable', the reality is that premiums are still rising by significant amounts."

Dr Glasson said a quick look around the country this morning would suggest that the medical indemnity crisis is far from resolved.

"The outlook under the current system involves indemnity premiums that continue to rise beyond the affordable reach of many doctors, inconsistency on thresholds and caps and statutes of limitations from State to State, and a rapidly diminishing medical workforce," Dr Glasson said.

"There is also inconsistency in the insurance products being offered to doctors by the medical defence organisations (MDOs). The MDOs must provide more attractive and more affordable products to doctors.

"Patients and communities will be disadvantaged. There will undoubtedly be fewer doctors and there will be a greater level of defensive medicine as the fear of litigation dominates medical practice.

"All governments must understand that doctors will leave the profession for good because of unsatisfactory long term responses to medical indemnity. You simply cannot replace a medical workforce overnight.

"It can take more than ten years to train new GPs and more than fifteen years to provide high-risk specialists such as obstetricians, anaesthetists and surgeons.

"Doctors want to practise medicine and look after their patients. They also want to work in an environment that does not expose them to short term or long term threat of litigation and liability.

"While the changes and reforms introduced since UMP's problems emerged last year are welcome, the system is far from secure. There is no optimism," Dr Glasson said.

With the Federal Government's medical indemnity changes taking effect today, the picture around the country looks bleak, including:

• Confusion reigns in the ACT with uncertainty over private obstetric, paediatric and anaesthetic services

• Up to 20 per cent of South Australia's rural GPs who provide obstetric services are expected to quit the specialty

• Specialists in Western Australian regional hospitals may not be able to see public patients

• One doctor last Friday received a bill for indemnity insurance of $100,000 (up from $70,000 the year before). As he pondered his future he was told it would cost him $80,000 to leave the profession - the exit fee from his insurer to cover the 'tail'. Hobson had a better choice.

Dr Glasson said doctors this week will be making individual decisions about whether to retire or change the way their practice operates, which would involve not continuing with some services such as obstetrics.

"The future is grim for Australia's medical workforce and for patients," Dr Glasson said.

"We need a nationally coordinated effort to get some commonsense into the system.

"We need urgent action to introduce a national care and rehabilitation scheme for the severely injured.

"Premiums must come down. Unaffordability for doctors will ultimately mean unaffordability for patients.

"The system must be fixed and fixed properly,' Dr Glasson said.

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