NSW: Doctors would down tools unless UMP uncertainty cleared

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NSW: Doctors would down tools unless UMP uncertainty cleared

SYDNEY, April 24 AAP - Doctors would simply down tools unless the future of UnitedMedical Protection (UMP) was resolved, NSW Health Minister Craig Knowles said today.

The medical insurer, which provides cover for 60 per cent of Australia's doctors, haspredicted disruptions to medical services if the federal government does not step in tosave it from folding.

A leaked letter has revealed Mr Howard wrote to UMP to say the government would notbe adding to the $35 million lifeline it had already offered the company.

UMP, which was expected to call an extraordinary general board meeting within 48 hours,insures around 90 per cent of doctors in NSW.

Mr Knowles's office said the state government had done all it could to protect doctors,including providing cover to those working in public hospitals.

It had also worked at the other end of the spectrum by reforming tort law to try tobring down insurance premiums by capping damages awarded to medical negligence victims.

"NSW is leading other states in the field of medical indemnity," a spokesman for Mr Knowles said.

Mr Knowles said doctors were anxiously awaiting the federal government to spell outhow it intended to protect them.

The NSW Australian Medical Association today warned the possible collapse of the medicalinsurer could result in doctors having to cease seeing patients.

And doctors who wanted to work without cover would have to personally take on the riskof a negligence suit, the association said.

"There will be doctors out of work by June 30 if (UMP) goes broke - that's how seriousthis is," Mr Knowles told AAP.

"We need to understand what the prime minister will do.

"There are some very, very anxious doctors out there who are extremely worried."

Mr Howard said today he had indicated in his letter that "in certain circumstances",the government would discuss with the company ways of continuing protection for doctors.

Mr Knowles said he believed Mr Howard had been alluding to the federal government'soffer immediately after the collapse.

However, if the government wanted to avoid doctors from quitting the profession, ithad to act now, he said.

"We've seen with Ansett and HIH the problems of playing catch-up after an organisationcollapses - in this case, we can see it coming," Mr Knowles said.

"The shock waves that will go through the medical industry if the biggest medical insurergoes broke will be so profound you'll see many people in medicine, particularly some ofthe older guys who have been on the tools for 30 years ... they'll just simply say I'vehad enough."

AAP ls/arb/was/de f

KEYWORD: INDEMNITY KNOWLES