Cost sharing under the new payment model

With the new Longitudinal Family Physician (LFP) Payment Model coming into effect February 1, doctors have been asking for more information and clarification about cost sharing.

Business Pathways – a Doctors of BC initiative that focuses on supporting doctors in navigating the operational side of managing a business – is currently developing comprehensive resources with information about integrating expense sharing into practice agreements. 

These new resources will be available in early February; however, doctors can begin to prepare by:

• Understanding and reviewing your existing overhead costs, including:
  • Personal costs, such as practice overhead insurance, Canadian Medical Protective Association (CMPA), and any association dues.
  • Shared ongoing office expenses, such as rent, staff salaries, office expenses, and insurance. 
  • Capital expenses, such as the purchase of an EMR system, major equipment, supplies, and office renovations.
• Supporting transparent conversations about costs:
  • Agree on the frequency and detail of financial reporting and a schedule for meeting on a regular basis.
  • Consider a process for dealing with questions or raising concerns.
  • Ensure billing transparency by submitting a Release of Information agreement when using an Assignment of Payment form.
• Consulting a professional before signing a legal agreement:
  • Physicians are advised to always retain their own legal advice when entering into contracts or agreements.
  • Preferred rates are available with vetted legal professionals such as Campbell Froh May & Rice LLP and Watson Goepel LLP, and accounting support from MNP LLP, through Club MD.

A Guide to Cost Sharing Agreements is now available, and more resources to help doctors understand the implications of cost sharing under the new payment model will be available soon.

Doctors are advised that these are only points of consideration. Each agreement will require further discussion among the parties involved and will be different for different practices. Doctors of BC is providing this information to members as a starting point, and physicians are advised to always seek their own legal counsel before finalizing contracts.