Approximately 75 per cent of New Brunswick physicians are compensated on a fee-for-service basis. The NBMS negotiates on behalf of all fee-for-service physicians under the authority of the Medical Services Payment Act and the NBMS’ incorporating legislation.

Historically, the NBMS and New Brunswick government have negotiated a fee-for-service master service agreement every three or four years. Each year during the term of the contract, the NBMS and government negotiate the allocation of the annual negotiated increase through a process known as Fee Distribution. This enables physicians the flexibility to address compensation inequities, recruitment and retention issues, health-care policy, and practice changes during the course of the contract.

The Fee-for-service Economics Committee, comprised of representatives from both family medicine and specialty groups, makes recommendations related to fee distribution each year to the NBMS Board of Directors, which has ultimate authority to approve Fee Distribution. The Department of Health must also agree to the fee distribution.