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HomeMy WebLinkAboutCAO-07-07 Cl~_n REPORT CHIEF ADMINISTRATIVE OFFICER Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: Monday, May 7, 2007 Report #: CAO-07 -07 File: ~~\ut~ -:\t. G..p~-J4tf,Ol By-law #: Subject: PHYSICIAN RECRUITMENT RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report CAO-07-07 be received; 2. THAT council approves the request from the Clarington Board of Trade for the financial support for physician recruitment up to the maximum total amount of $240,000 minus $43,000 paid to the Board in March 2007; 3. THAT the transfer of funds to the Board in the amount of $30,000 per each new doctor recruited will be made upon the Board providing to the Director of Finance a copy of the contract with the new doctor; 4. THAT the funding for physician recruitment be drawn from the Economic Development Reserve Fund to a maximum of $144,000 in 2007 with the balance of $53,000 referred to 2008 budget deliberations; and 5. THAT Mr. Michael Patrick and the Physician Recruitment Committee of the Clarington Board of Trade be thanked for their effort and commitment to recruit physician to Clarington and be advised of Council's decision. Submitted bY:cJ ~..:... ~ Franklin Wu Chief Administrative Officer CORPORATION OF THE MUNICIPALITY OF ClARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T (905)623-3379 F (905)623-5717 REPORT NO.: CAO-07-07 PAGE 2 1. BACKGROUND At a meeting held on April 10, 2007, Mr. Mike Patrick, co-chair of the Physician Recruitment Committee of the Clarington Board of Trade appeared before the GPA and requested Council's approval for a financial commitment of $240,000 in order to recruit 8 new physicians to Clarington. According to Mr. Patrick, the fund is needed to provide the necessary incentive to entice new doctor to locate their practices in Clarington as we are in a very competitive situation with all under-served communities. With the funds provided to the Board earlier in the year, the Physician Committee was able to sign one new doctor and is in the process of signing another one shortly. This cash incentive appears to be working and the Committee is looking for additional funds to ensure the momentum is not lost. The Committee is not requesting council to upfront all the cost in order to recruit the 8 new doctors. Instead it proposed the Municipality to transfer $30,000 to the Board as each new doctor has agreed to locate in Clarington. This amount is inclusive of $20,000 cash incentive and the balance to cover administrative and other recruitment expenses. 2. COMMENTS The Physician Recruitment Committee has done its due diligence in researching and evaluating the best methods in recruiting physicians. The presentation made by Mr. Patrick is comprehensive and covers all the required information. There is not a lot that can be added in order to assist council to make an informed decision. Nonetheless, staff would like to provide the following thoughts on the idea of supporting physician recruitment, the appropriateness of the amount sought, the mechanism of transferring fund and reviewing available funding sources. REPORT NO.: CAO-07-07 PAGE 3 Despite it being a health care related issue, physician recruitment has been accepted as an economic development activity by members of council and senior staff at the strategic business plan brainstorming workshops held earlier this year. In fact, economic development has been cited by the same group as the number one priority objective. Although the Business Plan has yet to be finalized, it essentially recognizes the importance of physician recruitment as an economic development activity which the Municipality plans to pursue. After working with the consultant and the previous recruitment committee, it has become obviously clear that if Clarington were to stand a chance in competing with other under-served communities, it must provide some forms of cash incentive to the new doctor. This is reality as pointed out by Mr. Patrick and we agree. The proposed cash incentive of $20,000 for a new doctor's commitment to stay for five years is a reasonable one. It is not the best cash incentive compared with many northern communities but it is a competitive one for southern Ontario communities. We understand the Committee is requesting an additional $10,000 per doctor to cover other recruitment expenses. This amount is also very reasonable considering the length of time required to connect with and to follow through with medical students and new graduates. In terms of the amount sought by the Physician Recruitment Committee, we understand the $240,000 is based on the recruitment of 8 new doctors. Since the Municipality has advanced $43,000 to the Board in March, 2007, the said amount should be subtracted from the $240,000 as requested. As a result, Council needs to find $197,000 if it were to continue the physician recruitment initiative. We agree with the Committee that it is not necessary for the Municipality to upfront the total recruitment cost. The suggestion that payment be made as each new doctor is successfully recruited is a sound approach. This can be accomplished as soon as the Board provides proof to the Municipality proof of REPORT NO.: CAO-07-07 PAGE 4 the signing contract. This method will ensure the Board will always maintain a sufficient amount to sign the next doctor. Since the 2007 budget has been approved and the tax levy is set, there is no opportunity to levy the cost of physician recruitment through property tax in 2007. The Director of Finance advised that $144,000 can be drawn from the Economic Development Reserve Fund which currently sits at $144,194. This will essentially utilize the entire balance in the reserve fund including the $100,000 that Council set aside during 2007 budget deliberations for economic development purposes. As payments will be made as each new doctor is successfully recruited, it is recommended that the balance of $53,000 be dealt with during 2008 budget deliberations.