The solution: A strong public health system

by Tom Pearson

The Federal Government has been forced to take a further tactical 
step back in its drive to destroy the public health system. It 
has suspended (for the time being) the medical indemnity levy 
that it foisted on doctors. Nonetheless, it has had some measure 
of success with some doctors, now so distrusting of the 
Government, that they have abandoned the public hospital system 
altogether.

The Government's medical indemnity levy is aimed at recouping 
around $460 million it had set aside to cover doctors' unfunded 
liabilities. The further suspension of the levy followed the 
decision last week to suspend levy payments over $1000.

Health Minister Abbott has announced a review of the way the levy 
has been calculated to "get a sustainable, long-term, affordable 
system of medical indemnity". As a result of the move the 
Australian Medical Association (AMA) says its members are likely 
to agree to withdraw their threat of a hospital walkout.

But doctors and the public will not be duped into thinking that 
Abbott intends to come up with a real alternative to end the 
crisis that erupted with the collapse earlier this year of the 
insurer United Medical Protection, which covered a majority of 
doctors.

The Government has attempted to foist the economic burden caused 
by the debacle onto doctors and, in turn, onto patients, while 
pointing the finger of blame at litigation.

Refusal by the Government to take responsibility for the public 
health system because of its drive to privatise health services 
is behind the mess.

The current situation comes on top of its failure to properly 
fund managed aged care, a failure that has forced many people 
into public hospitals who should have been having their needs 
attended to through aged care services.

In addition, more people are going to the public hospital system 
for treatment because the private sector hospitals lack the 
necessary equipment to properly treat some patients.

Another main factor creating the health and hospital crisis is 
the consistent refusal of the Government to increase the rebate 
paid to GPs. This is necessary if they are to continue to bulk-
bill patients.

At the same time the Government is pouring almost $4 billion a 
year of taxpayers' money into the coffers of private health 
insurers to tempt families to take out private health insurance 
policies.

The alternative

The Doctors' Reform Society (DRS) says resolution of the 
indemnity crisis must begin in consultation with the doctors. 
"That's what industrial relations is about", said DRS President 
Dr Tim Woodruff.

He stressed that in the long term there should be a system of 
medical indemnity that eliminates the problems in the current set 
up.

The changes to tort laws now being proposed which would restrict 
the rights of patients to sue for damages are an example of the 
faults inherent in the current system.

Dr Woodruff told The Guardian that the solution to the 
whole situation is to have such a strong public health system 
that no matter why a person is damaged, whether it is due to 
medical negligence or an act of God, he or she would still get 
excellent quality health care.

A strong public system made up of Medicare, the public hospital 
system and the Pharmaceutical Benefits Scheme, would remove the 
process of medical indemnity out of the hands of lawyers and 
litigation. "All of the medical costs would then be borne through 
a tax-payer funded, excellent public health system", said Dr 
Woodruff.

Unless such changes are undertaken the fundamental problems will 
remain regardless of whether or not a deal is struck with doctors 
in the short term.