Public sector indemnity breakthrough
1 June, 2004
As you would be aware the AMA has been lobbying assiduously at
both the State and Federal level for indemnity reforms and has
achieved a series of major breakthroughs.
Last year, as a consequence of private MDO's not being in a position
to provide cover for public work undertaken by independent contractor
doctors in public hospitals, AMA (WA) successfully lobbied for
the State Government to cover public patients by an individual
indemnity agreement. The details of that agreement and associated
ancillary protocols were achieved after a major lobbying process
which achieved a number of important qualitative improvements.
Comprehensive advice was issued to members by AMA (WA) at the
time detailing the outcome, the AMA's position on particular clauses
and options for independent contractors having regard for the Trade
Practices Act and other considerations.
Last year's contract for independent contractor medical practitioners
providing services in State Government public hospitals however
expires on 30 June 2004. As a consequence, AMA (WA) has been lobbying
extremely hard through direct discussions with the Minister, his
Chief of Staff and with Departmental lawyers and other representatives
for revisions to their contract to address the AMA's proposals
to enhance the contract.
At the same time the AMA has as a consequence of the Department's
approach been negotiating indemnity arrangements for salary practitioners.
Lobbying on the one hand for VMPs and negotiating for salary practitioners
have been extremely complex processes and have been a major focus
of the AMA for a long period of time.
I am pleased to advise that Cabinet has now approved the Department's
recommendations arising from these processes and approximately
(50) changes have been achieved. I attach a copy of an article
that will appear in the next Medicus summarising the changes.
If you are a Visiting Medical Practitioner (VMP) providing services
in State Government Public Hospitals, as an Independent Contractor
you should be receiving from your Health Service shortly a copy
of the proposed indemnity agreement. A series of questions and
answers developed by the Department in consultation with the AMA,
seeking to address any questions you may have will also be included.
Given that VMP Doctors current indemnity agreement ceases with
effect from 30 June 2004, it imperative that you consider the advice
you receive and respond prior to 30th June if you wish to maintain
cover.
Given the Trade Practices Act issues and your individual
circumstances, the AMA is not able to formally recommend the contract.
The AMA (WA) can however advise that it largely addresses the AMA's
substantive legal concerns and hope that it addresses any that
you may have had. You should thoroughly check the contract to ascertain
whether it does and if you consider it appropriate seek your own
independent legal advice.
If you are a Salaried Practitioner you will continue to be covered
under existing general vicarious liability principals albeit these
lack specificity and do not provide the same quality of cover as
the new contract will provide. You will be offered the opportunity
of signing the new contract in the near future. You should compare
it with any present cover offered by your Employer.
All Doctors should also strongly consider maintaining private
cover to ensure you are covered for aspects not within the scope
of the Governments contract and have access to independent legal
advice and assistance.
Members wishing to discuss the AMA's approach, what has been achieved
or specific aspects of the proposed indemnity agreement should
not hesitate to contact the Association on (08) 9273 3008.
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