May 6, 1997
(Health)

The following statement was issued today by LLoyd Matthews, Minister of Health. It was also read in the House of Assembly:

In the last provincial budget, government committed $2.6 million in new money for salaried physicians in rural areas of the province. Today I am pleased to announce the details of this salary increase for rural doctors. This new money will substantially raise the salary scales for rural physicians and allow Newfoundland to be competitive with other jurisdictions in Atlantic Canada.

Increases in salaries will be based on the same model as the isolation bonus system, which has been in place for the past two years. Under this model, rural communities are divided into three categories based on the degree of isolation. Physicians practising in the most rural areas of the province will qualify for the largest salary increase.

Those doctors practising in the Group 1 category will receive an additional $31,200 per year. This is in addition to the $10,000 annual isolation bonus. For example, this will bring the income level of an assistant medical oficer's average salary in Group 1 category from $77,121 annually to $118,321 when the geographic supplement is applied and the isolation bonus is included. Rural physicians in the Group 2 category will receive an additional $23,400 annually plus the $7,500 annual bonus, while physicians in Group 3 will see an additional $15,600 annually, plus a $5,000 annual bonus. Isolation bonuses are payable upon completion of two years service in a rural area of the province.

The $2.6 million in new money amounts to an increase in the annual income for rural doctors of between 15 and 35 per cent, depending upon the location and the current salary step. When the isolation bonus is included, the increase in annual income ranges from between 20 and 50 per cent.

Government is committed to solving the rural doctor shortage by addressing both the financial and lifestyle concerns. Government will continue to work with the Newfoundland and Labrador Medical Association and the Newfoundland and Labrador Health Care Association to improve access to medical services throughout the province. Thank-you Mr. Speaker.