UMP liquidation - priority is to preserve health services
AMA President, Dr Kerryn Phelps, said today the AMA will work closely with the Federal Government to ensure health services in the community are preserved following the announcement that the country's biggest medical insurer, United Medical Protection, has applied for the appointment of a provisional liquidator.
Dr Phelps said it is vital that doctors, patients and communities are provided with assurances of a satisfactory solution at the earliest opportunity.
"Doctors cannot work until their insurance is due for renewal if they are not confident that all claims can be paid," Dr Phelps said.
"At this very minute many doctors are questioning whether to proceed with operations or high risk procedures.
"Patients are unsure whether medical services they normally take for granted will be available or whether doctors will have adequate indemnity cover.
"It is a strange paradox that, as medical practice has become safer and more efficient, litigation against doctors has gone out of control and the crisis has become a catastrophe.
"There is concern for patients and doctors with legal actions outstanding.
"There are concerns that patients with legitimate claims will have no recourse.
"Urgent action and an urgent plan are needed from the Federal Government to enable the provisional liquidator to keep UMP as a viable enterprise.
"A national community funded scheme for severely injured people must be introduced as soon as possible as a matter of urgency.
"The AMA stands ready to assist the Government put in place a response that will restore confidence and certainty in the community about the availability of vital health services."
Dr Phelps advises AMA members and other doctors to consider their medical insurance options.
"In the meantime, the AMA will seek discussions with Government to provide a satisfactory solution to cover the crisis of the next hours, days and weeks, and put in place a plan of action to fix the medical indemnity problems in Australia for the long term.
"Australia's patients and communities deserve better than ongoing insecurity and uncertainty about access to doctors and medical services," Dr Phelps said.
29 April 2002
CONTACT: John Flannery (02) 6270 5477 / (0419) 494 761
Sarah Crichton (02) 6270 5472 / (0419) 440 076