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Update: Funding freeze would close some doctors’ offices: AMA

AMA president Michael Giuffre at a meeting Dec. 15;2012.
Photo Credit: Elise Stolte , Edmonton Journal

EDMONTON - A continued freeze on physician compensation would mean some doctor’s offices will have to shut their doors, warned the head of the Alberta Medical Association Tuesday.

Dr. Michael Giuffre sent a letter to Premier Alison Redford, whose government is in the midst of a long-running contract dispute with the province’s 10,000 physicians.

Alberta’s doctors have been without a contract for two years, and are asking for a one-per-cent increase above inflation. The money — paid as a fee for service — covers office staff, overhead and physician’s pay.

Redford has said no increase in fees should be expected in the province’s tight March budget.

Giuffre sent the latest letter to Redford and posted it online, saying, “Make no mistake; if this is the government’s course, it will have serious and negative implications for patient care. If medical practice costs continue to rise in concert with flat or declining revenues, there is only one unavoidable outcome: some medical practices in Alberta will no longer be viable; offices will close and patients will be without care.”

Giuffre was unavailable for clarification Tuesday.

Minister Fred Horne said any talk of a freeze in the budget is speculation, and that the province is still at the negotiating table.

As for losing doctor’s offices, “I’m not sure what they’re basing this claim on,” Horne said. “I’m not sure how a claim like this actually advances the discussion or helps the province in a time when we’re going to be facing a very significant shortfall of revenue.”

The government has said it is working through a $6-billion budget shortfall.

In the past, Redford and Health Minister Fred Horne have said doctors in Alberta are paid 20 to 29 per cent more than the national average.

In his letter, Giuffre said that’s not true. The latest data from the Canadian Institute for Health Information show payments for doctors in Alberta are 14 per cent higher than the national average, he said. Giuffre said the bigger payment is needed because of higher overhead and salary costs. Average salaries for Albertans are 20 per cent above the national average, he said.

Horne said the two numbers measure different things. The 29 per cent, which increased to 30 per cent in a new CIHI report released three weeks ago, measures average fee-for-service payments. The 14 per cent refers to all forms of physician payment, including lump-sum payments.

Wildrose health critic Heather Forsyth called it a “spitting match” and said Giuffre was calling Redford a liar.

“It’s just beyond my comprehension what the government has done to the docs in this province and it’s very sad,” she said Tuesday. “Quite frankly, I think you are going to see some doctor’s offices close. We’re in a serious situation in this province.”

NDP Leader Brian Mason criticized both the doctors and the province. “I don’t think the situation is helped by trying to frighten people,” he said.

“We’ve said all along that the government should not impose a deal on the doctors. It needs to be negotiated in good faith, and I think unfortunately both sides are trying to fight it out in public opinion. As long as the government is threatening to impose a settlement or a wage freeze, you’re not going to get a very productive meeting of the minds.”

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