Winter 2004

E x e c u t i v e   d i r e c t o r ' s   m e s s a g e
Doctors, demographics and deficits
On the line NLMA Executive Director Robert Ritter and President Dr. Andrew Major participate in a province-wide teleconference meeting to discuss preparations for the Association’s new agreement with government.
The fiscal challenges facing the people of Newfoundland and Labrador are formidable.

by Robert Ritter

The fiscal challenges facing the people of Newfoundland and Labrador are formidable. Indeed, many residents of this province have already had to swallow some of the bitter medicine associated with spending restraint measures which the government has imposed over the last year. Even if Premier Danny Williams’ campaign to secure the full and rightful entitlements of the province’s offshore resources is entirely successful, the road to economic security will not be without its trials and tribulations, both for the government and the people.

Unfortunately, both the problem and the solution are more complicated than merely harnessing more resource revenue and tightening public expenditures. The road to economic recovery requires the conquering of a different kind of liability, one that I would refer to as the “demographic deficit”. There is an urgent need to reverse the long-standing population hemorrhage that has been plaguing this province. Current trends indicate a growth of public services consumption reflected by an aging population and a corresponding decline in young people who would normally be fuelling the public system. This province must attract a critical mass of working age people over the next decade if we are to achieve economic stability and prosperity.

As a relative newcomer to Newfoundland and Labrador (having moved to St. John’s three years ago from Ontario), I can bear witness to the many advantages of living in this great province. But most prospective residents, as I did, want to be sure that certain fundamental needs will be met. Highest on the list is timely, quality medical care. In this context, the preservation of a medical system that is and is seen to be on par with the rest of Canada will be an essential prerequisite to achieving the province's economic aspirations. Although the current situation is good, the future prospects in this sector are uncertain.

Approximately 25 per cent of the current 1,008 practicing physicians in the province are over 55 and will need to be replaced over the next decade. This comes at a time when the global doctor shortage is severe and the replacement capacity of the system is limited. Because the market forces that emerge from a low-supply high-demand dynamic do not distinguish between “have” and “have not” provinces, we will need to remain in step with the world around us to ensure a relatively stable medical care system. This means that compensation must remain competitive and that the working environment and quality of life for doctors in this province are comparable to those in other parts of the country.

Premier Williams’ efforts to achieve economic stability and security for Newfoundland and Labrador must succeed because the very viability of the province is at stake. All residents of the province have an inherent obligation to contribute to the effort and physicians are not exempt from this responsibility. The NLMA and all its members intend to assist government in meaningful ways that will make a difference. Indeed, we have already launched a number of important initiatives.

Over the last year, the NLMA has been vigorously involved in developing an electronic medical records system under the brand name “Nell”. Our business arm “SmoothWater” is working in partnership with Unisys Canada in developing the only open source ASP system in the country. Our strategy is based on a consolidated provincial system that will not be subject to multiple vendors or proprietary licensing. This is the only initiative of its kind in Canada (estimated to cost in excess of $12 million), that is not being heavily underwritten by provincial government funding. The system being designed will facilitate better operational control and enhance cost-effectiveness of services. This undertaking is being coordinated with the Newfoundland and Labrador Centre for Health Information (NLCHI) and, if successful, will create many new jobs in the IT sector.

Our Association is collaborating closely with the government’s provincial drug program to explore new ways and means of containing spiralling drug costs. This partnership effort will be successful if there is continued meaningful consultation between the government and physicians, and as long as quality of patient care is not compromised. Similarly, the NLMA is open to further exploring innovations in health care delivery arrangements as long as the process continues to be transparent and progressive.

In the coming months, the NLMA and the Government of Newfoundland and Labrador will once again be engaged in negotiations to renew the agreement that expires on September 30, 2005. As we approach these discussions, we will remain mindful of the many competing priorities which the government must contend with and the need to be flexible and creative in finding the best solutions for our common problems. We are hopeful that the government will approach us with the same spirit and that the people of the province will be the beneficiaries of this goodwill.

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Nexus
Nexus DEFINED
A connected group or series; a bond, a connection.

Nexus is published quarterly for Newfoundland and Labrador's physicians. It is a forum for the exchange of views, ideas and information for members.