Court approves $1.3M plan to keep physicians at Manitoba Clinic

A Manitoba justice has given the green light to a $1.3 million plan to keep physicians from leaving the Manitoba Clinic as it restructures.

The large inner-city clinic is under creditor protection and is in the process of restructuring the business.

However, the court heard some of the remaining 36 physicians – referred to as the bread and butter of the business – are thinking of leaving, which could jeopardize the restructuring process.

This has prompted a retention plan in an effort to keep the remaining physicians at the clinic.

During a hearing on April 21, Justice David Kroft granted an order in which the remaining physicians will receive retention payments if they continue working.

“I do think that the retention plan is… critical to any ongoing attempt to realize or to restructure this business,” he said.

The court heard approximately $1.3 million will be used for these retention payments, doled out over the next seven months. While it won't guarantee all the physicians will stay, the court heard the goal is to make these payments an incentive to remain.

Any physicians who leave the clinic will not receive any further retention payments.

“This is necessary, and I do believe and am satisfied it would jeopardize the entire sales process which as I said depends on the doctors staying," Kroft said. "I don’t think using the word critical, which was used, is overstating the matter in this case.”

Kroft said this is a living process, however, and said the court will have to watch the situation as it continues.