During the past few years the landscape of Canadian physician reimburs
ement policy has undergone dramatic change. Rapidly eroding fiscal env
ironments for provincial (and federal) governments have forced provinc
es to ''get serious'' about controlling a significant, previously unco
ntrolled, budget line: physician expenditures. All provinces now impos
e medical expenditure caps, with eight of these being hard caps under
which any overruns are the responsibility of the profession. In additi
on, policies in five provinces now include individual income caps. One
of the effects of this new environment has been a rush to adopt suppl
y-control policies. This paper explores a number of other side effects
, such as heightened interest in alternative methods of payment, as we
ll as the emergence of, and difficulties for, joint province/medical a
ssociation management committees.