Insolvency looms for AGPN: Djakic
THE AGPN would be forced to stay in business without funding, staff or even any work to do if a revolt against its longstanding plan to transfer its business to a new national Medicare Local body succeeds.
The unusual scenario, presented by outgoing AGPN chair Dr Emil Djakic, came as he rallied general practice divisions, – many of which have folded into MLs – and their state-based organisations (SBOs) to vote for the wind-up plan at an extraordinary general meeting next week.
The vote on the AGPN’s transition into an ML body, which needs 75% support to be successful, was originally to be held at a meeting in Brisbane a year ago before it was postponed by a Chilean volcanic ash cloud that unexpectedly grounded flights around the country.
Then, with no divisions yet switched to MLs, speculation among divisions and SBOs suggested the AGPN wind-up motion may fail.
However, last week Dr Djakic said that with the last of 62 MLs – most involving divisions, some involving SBOs – to start on 1 July, and AGPN to lose its Commonwealth funding, he was confident most members would vote to wind up and transfer assets to the new Australian Medicare Local Alliance.
“If 98% of your funds disappear, you have to look at it and go, hang on, what’s our business case now?” Dr Djakic said.
If a push by General Practice South Australia (GPSA) to freeze the wind-up and call a separate general meeting to discuss AGPN’s conduct succeeded, AGPN, left with only cash reserves, would risk trading insolvent and be forced to call on members to provide resources, Dr Djakic warned.
GPSA did not return calls for comment.