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Senator Coonan must accept the truth: the IBNR tax is driving doctors out of practice

AMA President, Dr Bill Glasson, said today that Assistant Treasurer, Senator Helen Coonan, is out of touch if she cannot see the link between the Federal Government's new IBNR medical indemnity tax on patients and the decisions by individual doctors to cease practice in public hospitals.

Senator Coonan claimed wrongly again today that doctors had agreed to pay the new IBNR tax following 'consultation' with the Government.

Dr Glasson said the AMA position has always been that the IBNR tax would never be a possibility unless State tort law reform was achieved consistently across all States and Territories, the Federal Government had implemented a national care scheme for the severely injured, and medical indemnity premiums reduced.

"Not one of these conditions has been met, and doctors never agreed to pay the new tax," Dr Glasson said.

"It is unfair and misleading for Senator Coonan to suggest otherwise.

"Almost 4000 doctors gathered in Sydney on Sunday to give warning that many may have to change the way they practice or leave medicine altogether.

"Five orthopaedic surgeons resigned yesterday from Westmead and Blacktown Hospitals in western Sydney.

"Eight obstetricians with Blacktown Hospital have resigned today.  Surgeons in Mt Druitt are walking out, too.  Other staff specialists are expected to follow.

"The IBNR tax is driving doctors out of medical practice.

"The big losers are the patients and local communities.

"Instead of issuing a page of gobbledegook trying to escape responsibility for the problem, Senator Coonan should be seeking solutions to the problem.  Her comments today will only inflame the situation further.  It is time to look forward, not back.

"Senator Coonan must ask herself a very simple question:  If the IBNR tax is such a pittance, why are so many doctors choosing to reduce their work or leave medicine altogether because of it?

"The IBNR tax must be withdrawn immediately," Dr Glasson said.

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

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