Bulletin Number
        May 11, 1999
Direct inquiries to

         Ministry of Health
         Processing Office

(address below)
    Physicians, Hospitals, Clinics, and Laboratories
Subject      Increase to Threshold Reduction Level
Effective April 1, 1999, for fiscal year 1999/2000, the threshold levels at which reductions are calculated increases by $20,000. For General/Family Practitioners, the starting level increases from $300,000 to $320,000, and for Specialists from $380,000 to $400,000.

Threshold reductions are calculated at the following percentages after a physician reaches the revised payment amounts shown below.

Reduction Rate 33.3% 66.7% 75%

Payment Amounts Prior to April 1, 1999

- General Practitioners $300,000   $325,000 $350,000

- Specialists                 $380,000    $405,000 $430,000

New Payment Amounts Effective April 1,1999

- General Practitioners $320,000    $345,000 $370,000

- Specialists                 $400,000     $425,000 $450,000

Calculation of Threshold Reduction

The method of calculation is unaffected, except that each threshold level has increased by $20,000. The percentage calculation is based on the total amount billed. Once the reduction is applied, the payment amount is less than the amount billed. The levels noted above, at which the percentage reduction is applied, are payment levels. To reach these payment amounts, the actual billings will be higher because any billing beyond the Threshold will have resulted in a reduced payment.

The new total billing amounts that correspond to each revised payment level above are shown below:

Reduction Rate 33.3% 66.7% 75%

Billed Amounts Effective April 1, 1999

- General Practitioners $320,000 $357,500        $432,500

- Specialists                  $400,000 $437,500       $512,500

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