Ontario quietly raises MD's earnings cap. (Health).

TORONTO -- Without any initial public announcement the Ontario government raised its limits on doctors' incomes, except in cases where a physician earns more than $455,000 a year. Health Minister Tony Clement was wary about making the announcement because of the up-coming provincial election. The change became, known after a letter from the president of the Ontario Medical Association was sent to members in February.

Under the new system, retroactive to April l, 2002, all physicians will be permitted gross earnings of $455,000 a year without penalty of any clawbacks. After that, they receive only one-third of the regular payment for services provided to patients.

As under the old system, the limitations do not apply to physicians in under-serviced areas--e.g. Northern Ontario.

Formerly, general practitioners were allowed to earn $330,000 before fees were cut by 33 per cent. The clawback increased gradually to the point where general practitioners earning $370,000 lost 75 per cent ofall subsequent payments.

For specialists, the 33 per cent reduction in fees set in after the first $410,000 of earnings and rose to 75 per cent after $460,000.

The Health Ministry believes that the new rates will encourage more people to enter the medical profession, to remain in Ontario, and encourage doctors to provide more service by taking more patients.

Approximately 700 doctors, or three per cent of the total, were affected by the multi-tiered clawbacks, including 398 family physicians and 328 specialists. The new system is expected to pay an additional $12 million to physicians for services covered by the public health insurance plan.

A recent report by the Canadian Institute for Health Information shows Ontario MDS in 2000-2001 were the highest-paid physicians in the country. Their gross fee-for-service earnings amounted to $242,795 annually compared to the national average for all provinces of $219,368.