Executive Council
Health and Community Services
October 16, 2015

Supporting Health and Well-Being

Provincial Government Reaches Tentative Agreement with Physicians

The Provincial Government and the Newfoundland and Labrador Medical Association (NLMA) today announced that a tentative agreement with physicians has been ratified. The agreement recognizes the vital roles of physicians across the province and includes a new understanding on fees for insured medical services, salaries and benefits.

"Our government recognizes the tremendous value of physicians and their contributions for families and communities across the province. We will continue to work with the Newfoundland and Labrador Medical Association to ensure our common goal of delivering quality health care to residents. This tentative agreement represents the hard work of negotiating teams at both the NLMA and the Provincial Government and we look forward to continuing this productive working relationship into the future."
- The Honourable Steve Kent, Deputy Premier and Minister of Health and Community Services

The terms of the tentative agreement will see an overall increase of nearly $20 million in annual investments for physician services, which includes approximately $15.5 million for physician compensation and $4.5 million to support primary health care renewal initiatives. An agreement has also been reached on the terms of reference for the future use of binding arbitration. An overview of some key aspects of the tentative agreement is included in the backgrounder below.

"The agreement reached with the NLMA is another example of our government's recognition of those serving the public, including physicians, while maintaining fiscal responsibility on behalf of the people of the province. Our government is proud of this new agreement, which will help to ensure a stable and secure work environment for the province's medical professionals and continue to enhance the quality of health care services for the people of the province."
- The Honourable Ross Wiseman, Minister of Finance and President of Treasury Board and Minister Responsible for the Human Resource Secretariat

The Newfoundland and Labrador Medical Association represents approximately 1,300 practicing physicians across the province.

"This agreement is good for physicians and, more importantly, the people of Newfoundland and Labrador. It addresses our need to maintain competitiveness and supports our vision for a better primary health care system. New investments in primary health care renewal will enable family physicians to participate in system reforms that lead to long-term sustainability, improved quality of care and greater access for patients in their communities. I would like to thank Minister Kent and Minister Wiseman for their efforts throughout the negotiation process. We look forward to working with the Provincial Government over the coming year as we implement this agreement and reforms to the primary health care system."
- Dr. Jonathan Greenland, President, Newfoundland and Labrador Medical Association

The Provincial Government has placed significant emphasis on recruiting and retaining physicians through bursaries, retention bonuses and contract negotiations which ensure that physicians are compensated fairly and equitably. As a result of these efforts, Newfoundland and Labrador currently has more physicians working in the province than ever before.

QUICK FACTS

• The Provincial Government has finalized a tentative agreement on fees for insured medical services, salaries and benefits with the Newfoundland and Labrador Medical Association (NLMA).
• The NLMA represents approximately 1,300 practicing physicians across the province.
• The Provincial Government has placed significant emphasis on recruiting and retaining physicians through bursaries, retention bonuses and contract negotiations which ensure that physicians are compensated fairly and equitably. As a result of these efforts, Newfoundland and Labrador currently has more physicians working in the province than ever before.

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BACKGROUNDER
Overview of Tentative Agreement with Newfoundland and Labrador Medical Association

Financial Overview

• The tentative agreement will increase the physician services budget by nearly $20 million. This includes approximately $15.5 million for physician compensation and $4.5 million for primary health care renewal initiatives.
• Compensation increases will be distributed among various areas of service delivery, which will include an average increase of about three per cent to direct physician compensation.
• Increases will be distributed 40 per cent in 2015-16 and 60 per cent in 2016-17. There is no retroactive funding for 2013-14 and 2014-15.

Primary Health Renewal

• The tentative agreement includes $4.5 million to support a new Primary Care Renewal Program to accelerate reform in the province.
• A Family Practice Renewal Committee comprised of representatives of the NLMA and the Department of Health and Community Services will be established to design and oversee programs that support primary care renewal.
• New condition-based fee code initiatives will be developed to support comprehensive primary care. For example, codes may be developed to increase coordination and collaboration with other primary health care providers, improve patient access, and improve the delivery of comprehensive care.
• A Practice Improvement Program will offer continuing professional development for physicians and their staff to help improve practice efficiency, support evidence-based change management, and to enable enhanced delivery of patient care.
• Family Practice Networks (FPN) of physicians will be created where necessary to organize and promote physician participation in activities that improve the delivery of primary health care services at the regional or sub-regional level. Each FPN will work with their relevant regional health authority to develop solutions to problems in the local delivery of primary health care.

Arbitration Terms of Reference

• The parties have agreed to a terms of reference for the future use of binding arbitration, an item outstanding from the previous agreement.

2015 10 16                              4:05 p.m.