The Federal Government is set to unveil a “rescue plan” to deal with the medical indemnity problem, which lobbyists continue to insist is a crisis. The plan will most likely outline a framework for reforming the laws governing malpractice payouts and a new system of caring for severely injured people.

“We do have to do something at both a Federal and state level about the problem,” Prime Minister John Howard said late last week. “The Government has provided some short-term stabilisation of the position through the help it has given to UMP. We’re looking at medium and longer-term responses as well,” he said.