New five-year deal with physicians will lead to better access to care for Islanders and give PEI a competitive edge in recruitment and retention

This week, Prince Edward Island doctors signed a historic five-year Physician Services Agreement with the Government of Prince Edward Island and Health PEI. 

The new agreement represents a $188.3 million investment in physician services over the five years and a strong emphasis on primary care. This investment in family medicine will result in improved recruitment and retention that will ultimately lead to more Islanders getting care and being affiliated with Patient Medical Homes and health care providers.

Key highlights of the new Agreement include: 

• Recognizing Family Medicine as a specialty – PEI is the first province in the country to do so;
• Making PEI family physicians among the top paid in the country; 
• New incentive program for family physicians who care for a patient load (panel) above their expected benchmark;
• Increasing compensation across the board for all specialists; and
• Reducing red tape and administrative burden for physicians allowing them more time to care for patients. 

Access to care for Islanders was a shared goal for all parties during the negotiations process. By introducing one of the nation's leading compensation and benefits packages, this will be a selling factor for both recruitment and retention of physicians. The Agreement has reclassified family physicians to recognize them for their specialized skills and expertise, especially required in PEI’s rural medical system. It also introduces a new incentive program for family physicians working on the Island today who have more patients than expected benchmark, as well as an option for physicians to take on new patients. 

In addition to making across the board investments in all specialties, the contract will reduce physicians’ administrative burden, support them in moving throughout the system based on where they are needed the most, and includes nationally leading benefits focused on work-life balance, all of which will be instrumental for recruiting and retaining physicians. 

This new contract, combined with our Patient Medical Homes, collaborative care model, and the provincial EMR, creates the conditions to make PEI the new flagship province to practice family medicine. 

The Agreement also introduces a new partnership model, integrating MSPEI into the management of this agreement alongside Health PEI and the Department of Health and Wellness. This is a coveted role for medical associations across the country, recognizing that true representation helps create a stronger and more effective system and workplace for physicians.

The new contract is effective April 1, 2024—March 31, 2029, and will affect approximately 340 physician members. The two-week ratification period had a 79.6% voter turnout, with 84.1% voting in favour of the new Agreement, demonstrating strong engagement and commitment from physician members.

Quotes: 
“Over the last number of years we’ve been working on stabilizing our healthcare system and this agreement will be the next step forward in building – and enhancing our healthcare system – through retaining our current physicians and growing our healthcare team to ensure Islanders have access to care, as close to home as possible.”

– Hon. Mark McLane, Minister of Health and Wellness

“The new Physician Services Agreement shows a strong commitment on behalf of all partners to make PEI the best possible place to practice medicine. Physicians are crucial to Patient Medical Homes, hospitals, long-term care and community care. This agreement will help us build the healthcare teams we need to ensure all Islanders receive excellent health service.”

– Melanie Fraser, Chief Executive Officer, Health PEI 

“On behalf of all physicians in PEI, I am truly grateful to see our profession so deeply valued. We truly believe that this new Agreement will make Prince Edward Island stand out nationally as the best place to practice medicine in Canada, enhancing our recruitment and retention efforts for years to come.”

- Dr. Krista Cassell, President, Medical Society of PEI 

Media contacts:
Autumn Tremere
Department of Health and Wellness
agtremere@gov.pe.ca 

Everton McLean
Health PEI
emclean@gov.pe.ca 

Sheila Kerry
Medical Society of PEI
sheila@mspei.org 

Background:

Contract Highlights:

• A significant investment in the specialty of Longitudinal Family Medicine.
• Healthy and competitive salary per hour and fee code increases making us more nationally competitive. 
• Valuing physicians for all their work from collaborating with colleagues to helping their patients navigate the healthcare system. 
• A new incentive for family physicians who exceed the patient base expected of them and offer same day appointments. 
• Removal of more than 450 unique billing codes, reducing the overall amount to 31.
• All physicians will receive a $5,000 continuing medical education stipend each year, with no paperwork required. 
• New features for fee-for-service physicians such as payment for indirect care, cancelled surgeries and overhead.
• Increases in on-call stipends, recognizing the difficulty in providing 24-7 services by small groups of physicians.
• Health PEI and Government naming MSPEI (on behalf of physicians) as a partner in making decisions throughout the life of the Agreement to address barriers identified in physicians doing their best work.