UMP Agrees To AMA Terms For Independent Review
The President of the AMA, Dr Kerryn Phelps, said today that medical indemnity insurer, United Medical Protection (UMP), has agreed to the terms of an independent review to be conducted following an AMA request.
UMP currently insures around 70 per cent of doctors.
Dr Phelps said that Ernst & Young will coordinate the review and will report the results to the AMA and UMP at the latest by 15 March 2001.
"Against a backdrop of crisis surrounding medical indemnity premiums that has seen some doctors leave country areas, this review is a major step towards developing certainty and security with the system of compensation," Dr Phelps said.
"The AMA's priority is to see policy reform on medical indemnity from governments and this can be pursued more easily in a well-informed, panic-free environment.
"I am pleased that UMP has agreed to the terms of this review. It will assist the understanding of the situation leading up to UMP's recent 'call' and increase in premiums.
"I am pleased also that some governments - particularly the NSW Government - have indicated that they are willing to pursue immediate policy reform on medical indemnity insurance.
"The measure of success of these reforms will be their impact on costs and premiums, and the ability of doctors to continue to provide services to patients.
"The onus is also on the Federal Government to provide for structured settlements."
Dr Phelps said the UMP review should help to ensure that the momentum for meaningful reform of the overall medical indemnity system is maintained.
The review will look at areas such as the key factors underlying recent fee increases; forecasting on future likely claims; estimates of future pool requirements and the likelihood on future calls on members; and an examination of the relative costs of claims and success rates of litigation.