AMA Indemnity Bulletin 2
14 May, 2003
The State Government has announced as foreshadowed
in my last bulletin that it will:
- Change the Statute of Limitations law from the current
maximum of 24 years to 3 years with some provision for
exceptional cases.
- Change the legal definition of negligence
to a modified Bolam principle, whereby the definition of Medical
Negligence is based more on the medical standards at the time
rather than the discretion of Judges.
- Indemnify VMPs
treating public patients in public hospitals.
The legislative proposals are very positive, however, much work
remains to be done to seek to ensure that the legislation is drafted
and enacted appropriately. The definitions and exclusions need
to be sufficiently rigorous to avoid loopholes that could be exploited
to circumvent the intent of the legislation.
The acceptance of proposals to indemnify 'standard' VMPs is encouraging.
However, the delays, lack of time to appropriately resolve issues
of detail and numerous unresolved issues for both 'standard' VMPs
and 'non standard' VMPs arrangements are significant. There are
three main areas of concern:
- Scope: At this stage, the indemnity is
only proposed to apply to 'standard' VMP arrangements, with the
numerous other VMP type Doctor services contracts being subject
to individual assessment eg: non resident visiting specialist
services - (surgical, medical), radiology, application
to Joondalup and Peel VMPs, prison medical services, incorporated
services.
- Security: Government's existing position is
that the proposed indemnity cover scheme be in place for twelve
months when it will be reviewed. There is no guarantee it will
continue thereafter.
- Detail: There are numerous issues
of qualitative and quantitative detail re: definitions, exclusions,
representation, claims control, conflict of interest and processes.
The failure of the State Government to explicitly detail what
is covered in the indemnity arrangements and what is not for salaried
practitioners is also a major concern.
The AMA is continuing to make strenuous and detailed representations
to the Attorney General, The Minister for Health, Department of
Health and Government generally on each aspect.
Whilst progress is being made, the AMA has significant reservations
about the adequacy and detail of the reforms to date and strongly
advises individuals to remain informed of developments and confer
with their MDO.
Further information and updates will be issued on the AMA (WA)
website (www.amawa.com.au) or via additional bulletins as developments
occur.
Dr Bernard Pearn-Rowe AMA (WA)
President
Important Note: The State Government's announcement
that it will indemnify 'standard VMPs' for services to public patients
in public hospitals will only conceptually bring it into line with
all other States.
It has suggested that the cost will be $2 million. Interestingly,
with the change from Indemnity to Insurance, the State Government
will reap Stamp Duty Revenue of up to $4 million per annum on new
indemnity contracts. The AMA is continuing to urge improvements
in the quality of the proposed cover to match that in the Eastern
States.
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