AMA welcomes Federal Government intervention to ease medical indemnity crisis
AMA President, Dr Kerryn Phelps, said today that doctors and patients warmly welcome the Federal Government's decision to provide a capital guarantee to ensure that United Medical Protection (UMP) will meet the necessary requirements set down by the Australian Prudential Regulation Authority (APRA) for the insurer to stay in business.
Dr Phelps said sources close to the Government have indicated the capital guarantee is in the order of $35 million. The matter of incurred but not reported (IBNR) claims on UMP will be considered separately.
"On behalf of the doctors and patients and communities across Australia affected by the medical indemnity crisis, I thank the Prime Minister, John Howard, for his personal and timely intervention to keep the nation's biggest medical insurer viable in the short term," Dr Phelps said.
"Threats to medical services will now be eased temporarily. Doctors have been assured that there will be no call on them to prop up UMP and the upward pressure on premiums will be calmed, at least until the Government has had a chance to review UMP's financial position again after 30 June.
"However, the job is still ahead of us to ensure that equitable and affordable health services are maintained for all Australians, and the crippling effects of outrageous medical indemnity insurance premiums are removed from our health system.
"What is needed now is a national care and rehabilitation scheme for victims of medical accidents.
"The Federal Government must continue down the road of structured settlements and devise a scheme to care for severely injured patients. The State Governments must follow the lead of the NSW Health Minister, Craig Knowles, to reform legal processes and look to a system of capped payments.
"More payments like the $17 million to cerebral palsy sufferer, Calandre Simpson, will make medical insurance 'untouchable' and doctors will simply be unable to practise medicine because of the risks.
"The AMA looks forward to the Federal Government's Medical Indemnity Summit on 23 April in Canberra from which the framework for a nationally coordinated medical indemnity solution for the long term will hopefully emerge," Dr Phelps said.
The AMA has consulted closely with the Federal and NSW Governments to address all the issues emanating from the medical indemnity crisis to ensure that equity of access to affordable health services be maintained for all Australians no matter their circumstances or where they may live.
CONTACT: John Flannery (02) 6270 5477 / (0419) 494 761
Sarah Crichton (02) 6270 5472 / (0419) 440 076