Health and Community Services
Executive Council
April 29, 2010

Newfoundland and Labrador has more physicians employed than at any time in the history of the province, and the Provincial Government is investing record amounts of tax dollars into health care delivery for the people. This year's total health care budget of approximately $2.7 billion has contributed to the success of recruitment and retention of physicians in the province. The current offer presented to the Newfoundland and Labrador Medical Association (NLMA) reflects the continued significant effort by the Provincial Government to recruit and retain physicians, offering them approximately 98 per cent of Atlantic parity over the term of the contract. For the province's 1,042 physicians, the total package offered is worth an additional $79 million in salary and benefit enhancements over and above their present remuneration. This represents a 24 per cent increase in physician compensation and benefits and will add to the compensation already received by physicians in the province.

"Our government is committed to providing the best possible health care services to the residents in our province and a key piece of that commitment is the recruitment and retention of our physicians," said the Honourable Jerome Kennedy, Minister of Health and Community Services. "Our recruitment efforts are clearly working. In 2009, our government recruited 72.5 per cent of the physicians graduating from Memorial University Medical School residency programs who commenced practice that year."

The Provincial Government is spending significant money in the province's health care sector with a record investment of $2.7 billion in Budget 2010. This investment is over $1 billion more than what it was 10 years ago. According to a recent analysis of health-care spending by Toronto-based Dale Orr Economic Insight, Newfoundland and Labrador spends $1,000 more per person — or about 30 per cent more — than Quebec, which is the lowest spending province. In addition, according to a 2009 Canadian Institute for Health Information (CIHI) report, Newfoundland and Labrador was expected in 2009 to spend the most per capita on public health care in the country at $4,491.

Minister Kennedy pointed out the success of various bursary programs for family practice, specialists and psychiatry. Since 2004, the Provincial Government has awarded 299 bursaries, each with a one-year return-in-service commitment, to 177 Memorial University medical school applicants. This represents an investment of almost $7 million. In 2009, the Provincial Government recruited 14 of 17 Memorial University family practice residents who commenced practice, all with bursaries and return-in-service commitments. In addition, the Provincial Government successfully recruited 17 of 25 specialty residents who commenced practice, nine of whom have bursaries and return-in-service commitments.

"As a result of all of these efforts, right now we have more physicians practising in this province than ever before," added Minister Kennedy. "As of September 2009, there were 1,042 physicians practising in Newfoundland and Labrador, including 508 general practitioners and 534 specialists."

Negotiations with the Newfoundland and Labrador Medical Association continue. Yesterday, Minister Marshall received a letter seeking clarification from the NLMA to government's letter of offer written on April 20, 2010.

"We will respond to the NLMA's request in a timely manner," said Minister Marshall. "We will also repeat our requests to the NLMA to return to the table for face-to-face negotiations so the process can be expedited. The NLMA has a responsibility, as does government, to negotiate a deal that is sustainable and in the long-term interest of the people of Newfoundland and Labrador."

The Provincial Government spends approximately $5 million annually in retention bonuses for salaried physicians, the majority of whom are practising in rural Newfoundland and Labrador. Additionally, the Williams Government is stepping up recruitment efforts by increasing the province's medical school seat complement to 80 seats in 2011 from the current 64 seats.

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