26 June 2003

Macklin: Labor's "Jenny on the Spot" When it Comes to Medical Indemnity

In the absence of a shadow Health Minister, the Deputy Opposition Leader has lumbered into the medical indemnity debate at the last minute, ignorant of the significant work done by the Howard Government over the past year to address the complex and critical issue of medical indemnity.

“Ms Macklin may not be aware, but thanks to the Government’s comprehensive medical indemnity package, doctors will not only be safer in their insurance arrangements from July 1, but many high risk specialists, such as obstetricians will actually have reduced medical indemnity premiums thanks to the Government’s subsidies,” Minister for Revenue and Assistant Treasurer, Senator Helen Coonan said today.

“The longer term solution to sustainable medical indemnity premiums depends on State and Territory Governments continuing to implement reforms to negligence law,” she said.

“Reforms are needed so that the test for the standard of care applied to doctors is more reasonable, to reduce limitations periods and to put in place appropriate caps and thresholds on damages.”

Last year, the Commonwealth provided a blue print for reform to the States and Territories through the Review of the Law of Negligence, or ‘Ipp Report’. At the 15 November 2002, Ministerial Meeting on Insurance Issues, the Commonwealth and all State and Territory Government’s agreed to implement the key recommendations of the Ipp Report.

The Deputy Opposition Leader would do better talking to the Stanhope Labor Government in the ACT which has fallen so far behind every other Australian jurisdiction in this area that they now threaten the provision of health services to the citizens of Canberra.”

“The ACT Government must live up to the commitments it made on 15 November last year.”

Key recommendations of the Ipp Report relating to medical indemnity which the ACT Labor Government has so far failed to announce a position on, or have specifically rejected include:

  • A cap and threshold on general damages;
  • A cap and threshold on awards for gratuitous care;
  • Limitations on awards for nervous shock;
  • Prohibitions on orders for legal costs in small awards; and
  • The introduction of a revised standard of care to be applied to medical practitioners (the modified ‘Bolam’ test).

“In addition, the ACT Labor Government has ignored the recommendations of the Ipp Report in coming to a position on amending the statute of limitations. Instead it has come up with a complex formula which does nothing to reduce the risk of long tail claims against obstetricians. Under the ACT Labor Government announced approach, claims could still be brought against a doctor over twenty years after an adverse incident takes place,” Senator Coonan said.

“Trying to fire a cheap political shot has seriously backfired on Ms Macklin who is clearly not across her brief.”