mutual defence organization - TUUM EST

Minutes of the 2000 annual meeting
BUSINESS ARISING FROM THE MINUTES
Choice of Counsel
9. During debate on this issue at the 1999 annual meeting several
members recounted personal experiences which had led to their
dissatisfaction with the legal services provided by the Association. In
response the CMPA Council asked that the secretary-treasurer and
General Counsel review the circumstances which had given rise to the
dissatisfaction. Their report was considered by Council in October. On
behalf of Council the president conveyed the message that Council is
satisfied that the CMPA has an appropriate appeals process in place and
that in the case of conflict it does address concerns raised by members as
they become known.
Life membership exceptions
10. With respect to the motion passed at the 1999 annual meeting,
Council agreed to consider exceptions on an individual basis. One such
request was considered and an exception was denied. To date there have
been no additional requests for consideration.
REPORT OF COUNCIL
11. The president pointed out that now more than ever the CMPA is
dependent on provincial governments to provide reimbursement of
CMPA membership fees, a fact which makes cost containment of
paramount concern both for members and for the governments which
support them. He introduced Dr André Duranceau who would chair a
panel discussion on the various components of costs and the strategies
the Association is developing to contain them. Dr Duranceau introduced
the panel: Dr Lawrie Groves, a family physician and member of Council
from Manitoba, Dr Vyta Senikas, an obstetrician and member of Council
from Montreal, Dr Michael Lawrence, a family practitioner from
Vancouver and chair of the Association's working group on tort reform,
and Dr John Gray, CMPA's secretary-treasurer.
PANEL DISCUSSION ON COST CONTAINMENT
Administrative costs
12. Dr Duranceau noted that during its 100-year existence six major
events have had a profound effect on the Association's structure and
administrative costs: the decision to change from a pay-as-you-go basis
to a fully-funded position (1984), government involvement in
reimbursement schemes (1986), the Prichard report (1990), the
Dubin report (1997), the governance review that followed, and most
recently the decision to move to regional rating. The Association's
response to each of these events led to changes in structure and
corresponding increases in administrative costs, principally due
to the expanded activities of three CMPA departments: research and
education, case management and communications. The Association's
current administrative costs represent 9.8% of total expenses,
9.2% of membership fees and 4.9% of total revenues, figures which
compare favourably with those of insurance companies and other
not-for-profit organizations.
Legal cost containment
13. In his presentation Dr Groves outlined the long-term view the
Association has adopted in the development of a comprehensive strategy
to contain legal costs, and set out for the members the four key elements
of that strategy as follows:
• an aggressive defence philosophy that discourages frivolous
lawsuits;
• rigorous scrutiny of legal billings and hourly billing rates to
ensure that they are appropriate and competitive;
• implementation of effective legal case management systems
and techniques;
• a clearly articulated legal fees and disbursements policy to guide
provincial counsel firms across the country.
Dr Groves provided some specific examples of the success the strategy
has achieved thus far. The number of new legal actions commenced
against members has remained relatively constant for the past five years,
26