Template 6.0
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Service Agreement for Health Professional Bursary and Undertaking
THIS AGREEMENT made this ______ day of ___________, 20___, at __________________, in the
Province of Newfoundland and Labrador.
BETWEEN:
__________ REGIONAL HEALTH AUTHORITY, (hereinafter
called The “RHA”)
AND:
___________________, of _________________, in the
Province of _____________________ (hereinafter called the
“Recipient”)
WHEREAS the Recipient is enrolled in a ____________________ program (hereinafter called the
“Program”);
AND WHEREAS the Recipient has agreed to undertake to enter employment as a
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_________________
at the
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__________________ in the community of _______________, if offered, with the RHA upon
completion of the program of study;
NOW THEREFORE THIS AGREEMENT WITNESSETH that for this undertaking for future
employment and in consideration of mutual covenants, terms and conditions herein contained, in this
agreement, the parties to this Agreement covenant and agree as follows:
1. Financial Assistance
1.1. The RHA, in consideration of the Recipient’s undertaking to enter employment as a
__________________ with the RHA, and upon receipt of proof that the Recipient is registered
in the Program, which the Recipient is scheduled to attend between
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____________, 20___,
and _____________, 20___, at
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___________________, agrees to pay to the Recipient the
amount of $_________, as a bursary to assist the Recipient in pursuit of completing the
Program.
1.2. The Recipient understands and agrees that this is an agreement to provide financial assistance
and is not to be constructed, interpreted or relied upon as an offer or promise of employment.
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Occupation
2
Facility
3
Month/day
4
Educational Institution
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1.3. The RHA will make an offer of employment to the Recipient within 30 days of program
completion. If an offer of employment is not made within 30 days this agreement will be null
and void. The RHA reserves the right to release the Recipient from this agreement if deemed
necessary.
2. Recipient’s Obligations
2.1. The Recipient agrees to apply to the RHA for a position within 30 days after program
completion.
2.2. The Recipient agrees to accept, if offered,
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_____________ employment as a
______________________ with the RHA within 30 calendar days of the Recipient’s
completion of the Program and to remain employed with the RHA for a period of not less than
___________ hours of work on the terms and conditions then applicable to such positions (the
“Service Obligation”).
2.3. The Recipient agrees to immediately notify the RHA if he/she is in default of this agreement.
3. Representations and Warranties
3.1. The Recipient warrants and confirms that every fact stated or represented by the Recipient in
connection with his/her application for financial assistance is true and complete in all respects
and agrees that the RHA shall be conclusively deemed to have relied on each such
representation or statement in entering into this Agreement.
3.2. The execution of this Agreement by the Recipient does not negate or alter the terms of any
agreement the Recipient has signed with another Regional Health Authority in the Province of
Newfoundland and Labrador. The Recipient confirms that the commitment he/she is making
to the RHA pursuant to this Agreement does not result in a breach of any commitment made
to another Regional Health Authority in the Province of Newfoundland and Labrador
4. Default
4.1. The Recipient agrees that failure to comply with the Recipient’s Obligations as outlined in this
Agreement constitutes a default of this Agreement and said default includes the following:
a) failure to maintain enrolment as a student in the Program and to maintain good standing
in the Program;
b) failure to graduate from the Program;
c) failure to comply with any term or condition of this Agreement;
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Employment Status (e.g. permanent full-time, temporary part-time, etc.)
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d) failure to accept, if offered, employment with the RHA within 30 calendar days of
completion by the Recipient of the Program;
e) failure to complete the Service Obligation;
f) failure to successfully pass applicable licensing or registration examination(s);
g) having made a materially misleading or inaccurate statement in the Recipient’s application
for a Bursary; or
h) purporting to confirm statements in this Agreement as being true when they are not in fact
true
4.2 The Recipient shall offer no defence, save payment, against any claim made by the RHA for
sums due arising from the default of this Agreement.
5. Reimbursement upon Default
5.1. In the event of a default of this Agreement, the Recipient agrees to immediately reimburse the
RHA as follows, and in accordance with the Collection Policy – RHA Receivables attached in
Schedule B to this Agreement:
Where the Recipient defaults on the Agreement, the RHA will meet with the recipient (either
in-person or via telephone) within five business days of default notice. The Recipient will,
upon demand by the RHA, within thirty (3) calendar days, refund to the RHA the total prorated
amount based on the unfulfilled Service Obligation (the “Defaulted Amount.”), together with
interest as defined in this Agreement. For the purposes of calculating the portion of the term
for which payments were made to or on behalf of the Recipient, the Recipient will be credited
for each day in the term for which services were provided and no repayment to the RHA will
be required for the days credited.
5.2. In all instances where the Recipient will be charged interest under this Agreement, interest on
the defaulted amount to be repaid by the Recipient, will be calculated on the unfulfilled portion
of the Service Obligation.
5.3. Interest on the defaulted amount to be repaid by the Recipient will be calculated retroactively
from the date the money was advanced to or on behalf of the Recipient, and will compound on
the outstanding balance as of the end of each month.
5.4. The interest rate will be the prime rate posted by the Bank of Canada in effect on the first day
of January preceding the date of default plus two (2) percentage points.
5.5. The Recipient agrees that following a default on this Agreement, he/she shall be liable to
reimburse the RHA in respect to any and all costs and expenses, including but not limited to
reasonable legal fees which the RHA incurs in relation to attempts by the RHA, or another
party on the RHA’s behalf, to collect the defaulted amount.
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6. Non-Liability
6.1. Amounts paid to the Recipient pursuant to this Agreement may be subject to income taxation.
The Recipient is responsible for taxes assessed by the Canada Revenue Agency in relation to
payments made to the Recipient pursuant to this Agreement. The Recipient understands that
he/she should consider consulting a tax professional on the specific taxations effects and
ramifications which may be associated with the receipt of payments pursuant to this
Agreement. The Recipient agrees not to commence legal action against the RHA with respect
to any amounts assessed against the Recipient by the Canada Revenue Agency in relation to
the amount of financial assistance provided under this Agreement and agrees to indemnify and
hold harmless the RHA in respect of any matters related directly or indirectly to the taxation
of the amount of financial assistance.
6.2. The Recipient acknowledges having read and received a copy of this Agreement and agrees
that the contents hereof form a binding and enforceable contract.
6.3 The Recipient acknowledges having read the Health Professional Bursary Policy attached in
Schedule A to this Agreement and agrees to be in compliance with such policy.
6.4 The Recipient acknowledges having read the Collection Policy – RHA Receivables attached in
Schedule B to this Agreement and agreement to be in compliance with such policy.
7. Termination
7.1. The RHA may only accept a bursary transfer to/from another Regional Health Authority
(“Other RHA”) where the equivalent amount of financial assistance may have been made
available at the other RHA. In situations where no financial assistance or financial assistance
of lesser value would have been available in the other RHA, the Recipient would then be
responsible to pay the difference to the original RHA. The Recipient must obtain the RHAs
permission to transfer as well as sign a service agreement with the Other RHA.
8. Notice
8.1. Any notice to be given by one Party to the other according to this Agreement may be delivered
personally or by courier, transmitted by fax, mail or e-mail to the following address:
To the Recipient:
[INSERT RECIPIENT’S CONTACT INFORMATION]
To the RHA:
[INSERT RHA’S CONTACT INFORMATION]
Notices shall be deemed to have been received by the addressee as follows:
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a) As of the date on which they are delivered where delivery is by a party or by messenger or
special courier services;
b) As of the date on which they are sent where delivery is by fax or other means of electronic
communication; and
c) Six (6) days after delivery to Canada Post Corporation where the postal services is used.
8.2 The Recipient must inform the RHA of any change in contact information such as permanent
or temporary address or phone number provided at the time of signing this Agreement.
9. No Assignment
9.1. The Recipient shall not assign this Agreement in whole or in part to any third party.
10. General
10.1. This Agreement and all attached schedules constitute the entire agreement between the parties
to this Agreement pertaining to the subject matter hereof and supersede all prior and
contemporaneous agreements, understanding, negotiations and discussions, whether oral or
written, of the parties and there are no warranties, representations or other agreements between
the parties in connection with the subject matter of this Agreement except as specifically set
forth herein. In the event of a conflict, this Agreement shall prevail.
10.2. No covenant or condition of this Agreement may be waived except by the written consent of
the RHA, and forbearance or indulgence by the RHA in any regard whatever shall not
constitute a waiver of the covenant or condition to be performed by the Recipient and until
complete performance by the Recipient of the covenant or condition, the RHA shall be entitled
to invoke any remedy available to the RHA under this Agreement or by law, despite the
forbearance or indulgence.
10.3. This Agreement shall remain in effect until the fulfillment and performance in full of all of the
Recipient’s obligations contained herein.
10.4. This Agreement shall be governed and interpreted in accordance with the laws of the Province
of Newfoundland and Labrador and all actions, suits or proceedings arising out of this
Agreement shall be determine in a court of competent jurisdiction in Newfoundland and
Labrador subject to any right of appeal.
10.5. A facsimile signature of an otherwise electronically reproduced signature of either the
Recipient or the RHA shall be deemed to be an original.
10.6. No changes, alterations, modifications or amendments of this Agreement shall be effective
unless made in writing and signed by the RHA and the Recipient. This Agreement may be
extended for parental leave or other matters as approved by the RHA.
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10.7. In any provision of this Agreement is determined to be invalid or unenforceable, in whole or
in part, such invalidity or unenforceability shall be attached only to such provision, and all
other provisions hereof shall continue in full force and effect.
10.8. The division of this Agreement into articles and sections and the insertion of headings are for
convenience of reference only and shall not affect the construction and interpretation of this
Agreement.
10.9. The Recipient and RHA acknowledge and agree that the rule of construction to the effect that
any ambiguities are resolved against the drafting party shall not be employed in the
interpretation of this agreement.
10.10. This Agreement shall enure to the benefit of, and be binding upon, the RHA’s respective
successors and permitted assigns.
IN WITNESS WHEREOF the parties have caused this Agreement to be executed the day and year first before
written.
SIGNED by the Recipient in the presence of: Signed by the Recipient:
Witness
Recipient
Date
Date
SIGNED on behalf of the RHA by its
representative duly authorized in that
regard in the presence of:
Signed by the RHA:
Witness
Chief Executive Officer or authorized
designate
Date
Date
Schedule A.
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Health Professional Bursary Program Policy
Revision Date: February 4, 2020
Program Description:
A bursary is an incentive intended to provide financial assistance to students enrolled in certain health
related education programs who accept employment in a difficult-to-fill position.
Please contact RHAs to determine the availability of health professional bursaries.
Scope:
Bursaries are available for selected health occupations, targeting difficult-to-fill positions. Not all positions
in a selected health occupation will be eligible for a bursary; availability of bursaries varies annually by
location and current vacancies.
RHAs apply for bursary funding annually; applications approved for funding expire at the end of the fiscal
year in which they are approved. Applications for Health Professional Bursaries must be for difficult-to-fill
positions within RHAs or for targeted areas agreed to by the HR Planning Sub-Committee.
Bursaries are available to students only. Recipients must be actively enrolled in an education program for
one of the selected health occupations in the table below in order to receive a bursary. Preference for health
professional bursaries is given to residents of Newfoundland and Labrador; however, exceptions may be
considered.
For licensed practical nurses, students must be enrolled in the 16-month Practical Nursing Program offered
by the Centre for Nursing Studies or the College of the North Atlantic. For personal care attendants, students
must be enrolled in the 30-week Personal Care Attendant/Home Support Worker Program that follows the
provincial curriculum standards or equivalent for training of Home Support Workers in Community
Settings and Personal Care Attendants in Nursing Home Settings.
RHA employees who are actively enrolled in an education program for one of the selected health
occupations in the table below may also be eligible. Other health occupations may be considered by the HR
Planning Sub-Committee upon request by the RHA.
Eligible Health Occupations:
Audiologist
Pharmacy Technician
Behaviour Management Specialist
Physiotherapist
Cardiology Technologist
Prosthetist-Orthotist Clinician
Cardiopulmonary Technologist
Prosthetist-Orthotist Technician
Cardiovascular Perfusion Technologist
Psychologist (Clinical)
Child Management Specialist
Radiation Therapist
Combined LX Technologist
Recreation Development Specialist
Dietitian (Clinical)
Registered Nurse First Assist
Dosimetrist
Respiratory Therapist
Electroneurophysiology Technologist
Social Worker
Genetic Counselor
Speech-Language Pathologist
Licensed Practical Nurse
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Amounts and Conditions:
1. A $10,000 bursary is available for students with a required service obligation equaling two years
(3,900 or 3,640 hours of work as applicable). A $5,000 bursary with a required service obligation
equaling one year (1,950 or 1,820 hours of work, as applicable) is also available. There are some
circumstances where longer service obligations may be required.
Some exceptions apply:
• Physiotherapy and Occupational Therapy Bursaries in St. John’s - For students actively
enrolled in physiotherapy or occupational therapy programs, a $6,000 bursary is available with
a required service obligation to be completed in St. John’s equaling two years (3,900 hours of
work). A $3,000 bursary with a required service obligation to be completed in St. John’s
equaling one year (1,950 hours of work) is also available. Physiotherapy and occupational
therapy bursaries with service obligations outside of St. John’s follow the amounts and
conditions listed above.
• Licensed Practical Nurse and Personal Care Attendant Bursaries - For students actively
enrolled in the 16-month Practical Nursing Program offered by the Centre for Nursing Studies
or the College of the North Atlantic, or students enrolled in the 30-week Personal Care
Attendant/Home Support Worker Program that follows the provincial curriculum standards or
equivalent for training, a $5,000 bursary is available with a required service obligation equaling
two years (3,900 hours of work).
o Recipients must meet all conditions required by the RHA before being offered a
bursary which includes meeting conditions of employment with the RHA offering the
bursary.
2. RHAs cannot increase the amount of bursaries.
3. Students are eligible for bursaries in the final year of their education program; exceptions to provide
a bursary to a student in an earlier year of their education program may be considered by the Health
Workforce Planning Division on a case-by-case basis and only in extenuating circumstances.
4. Bursaries must be paid to the recipient prior to program completion.
5. Program completion is defined as the last day of exams as per the program calendar. It is not the date
of graduation.
6. A signed service agreement is required for each recipient receiving a bursary. Service agreements
signed with a RHA are legally binding contracts.
7. Positions can be permanent fulltime, temporary full-time, permanent part-time or temporary part-time,
depending on the approval, with a guarantee of at least nine months employment. If a position is part-
time, then the bursary amount will be prorated based on the hours of work per year. In either case, the
full service obligation must be satisfied.
8. Positions for licensed practical nurses and personal care attendants may be temporary call-in positions.
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9. When offering part-time or temporary call-in employment, RHAs are responsible for tracking all shifts
offered and worked to ensure that ample opportunities are made available to the recipient to work the
required hours.
10. Bursaries may be subject to income taxation. The bursary will be recorded on the appropriate T4A/T4
that is issued to each recipient for funds disbursed in each calendar year.
11. Recipients of more than one incentive under the Bursaries and Incentives Program of the Government
of Newfoundland and Labrador with a service obligation to the same RHA to be employed in the same
position will complete their service obligations concurrently.
12. RHAs must inform the Department of Health and Community Services in writing once a default
occurs.
13. Interest on the amount to be repaid by the recipient is calculated retroactively from the date the money
was advanced to or on behalf of the Recipient, and will compound on the outstanding balance as of
the end of the month. The interest rate is the Bank of Canada prime rate plus two percentage points.
14. RHAs may only accept a bursary transfer to another RHA where the equivalent bursary may have
been made available at the other RHA. Where a lesser or no bursary would be available in the other
RHA, the recipient would then be responsible to pay the difference to the original RHA. The recipient
must obtain the original RHAs permission to transfer as well as sign a new service agreement with the
other RHA. Permission to transfer may be denied by the original RHA, in which case, the recipient
may choose to remain in the original position as noted in the service agreement or default on the
bursary.
Enhanced Bursary Option:
If RHAs have been unsuccessful in offering an approved bursary and can provide evidence that all avenues
to attract a recipient currently enrolled in a health occupation program have been exhausted, RHAs may
apply for an enhanced bursary for the position. Special consideration may be given where an RHA can
provide workforce planning data (ex: anticipated turnover, retirements, service expansion, etc.) that shows
an increased demand for the health occupation due to retirements or expanded health services.
RHAs may request an enhanced bursary in one of the following categories:
• Category 1: Approved bursary amounts may be doubled. Service obligation will also be doubled.
In this instance, a limited supply of the health professional students exists and/or the bursary
amount has been deemed unattractive.
• Category 2: Bursary equivalent to the cost of completing the particular education program
including tuition, books and fees only to a maximum of $20,000. RHAs can apply for this bursary
to support an individual to complete a local education program or program via distance education.
Proof of total program costs must be provided.
• Category 3: Category 3 is reserved for when an RHA is supporting a current employee to complete
a health professional program that is not offered in the province or via distance education and all
avenues of recruitment have been exhausted. (Ex: EEG program). RHAs will provide a bursary
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covering the full costs of tuition. Service requirements will be 1,820/1,950 hours of work per $5,000
provided.
Regional Health Authority Responsibilities:
The RHAs responsibilities include the following:
1. Submitting applications for bursary funding to the Health Workforce Planning Division at the
beginning of each fiscal year for consideration by the Human Resources Planning Sub-Committee,
which includes providing a completed Application for Health Professional Bursary Funding (Form
6.0) and other supporting documentation, as necessary.
2. Recruiting an incumbent for the bursary.
3. Appropriately screening of students before offering a bursary to ensure suitability for employment
including, but not limited to, criminal record checks, academic standing in the program, references
from program instructors and previous employers, and interview with student.
4. Establishing a written service agreement with the recipient.
5. Submitting documentation to the Health Workforce Planning Division when the bursary has been
awarded to the successful incumbent, which includes a completed bursary application form,
verification of enrollment and signed service agreement.
6. Preparing bursary cheques for recipients with appropriate deductions.
7. Requesting reimbursement of funds from the Health Workforce Planning Division with supporting
documentation on a quarterly basis.
8. Offering employment to the recipient within 30 days of program completion in accordance with the
service agreement.
9. Ensuring that recipients who are offered or request permanent full-time or temporary full-time
positions complete the 3,900 hour service obligation within two years. RHAs must ensure that
recipients who are offered or request temporary call-in or part-time positions complete a 3,900 hour
service obligation within four years. For recipients who choose to accept partial bursary amount (one
or two installments), time frames for completing the service obligation will be prorated.
10. If an employment offer is not made within this timeframe the signed agreement will be null and void,
and repayment will not be expected. The RHA also reserves the right to release a recipient from an
agreement if deemed necessary.
11. Tracking the fulfillment of service agreements for bursary recipients.
12. When offering part-time or temporary call-in employment, RHAs are responsible for tracking all shifts
offered and worked to ensure that ample opportunities are made available to the recipient to work the
required hours.
13. Notifying the Health Workforce Planning Division once a recipient has defaulted.
14. Enforcing collection of defaulted amounts for recipients as per the Bursaries and Incentives Program
Collection Policy – RHA Receivables.
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15. Notifying the Health Workforce Planning Division of collected amounts of defaulted bursaries on a
quarterly basis.
16. Preparing the appropriate T4/T4A for bursary recipients annually.
17. Providing evidence when applying for the enhanced bursary program as deemed appropriate.
Recipient Responsibilities:
The recipient’s responsibilities include the following:
1. Reviewing and complying with the terms and conditions of the incentive and service agreement.
2. Providing RHAs with proof of active registration in their education program.
3. Notifying the RHA in writing if he/she is unable to fulfill the service agreement at least three (3)
months prior to the termination date of the service agreement and arrange for repayment of the
defaulted bursary amount in accordance with the service agreement and the Bursaries and Incentives
Program Collection Policy – RHA Receivables.
4. Notifying the RHA of any change in contact information such as name, permanent or temporary
address, and phone number provided at the time of signing the service agreement.
5. Applying for and accepting a position within 30 calendar days of program completion.
6. The student is responsible for informing the RHA and Department of Health and Community Services
of any change in program completion date and contact information such as name, permanent address,
phone number, etc.
Procedure:
1. The RHA submits an Application for Health Professional Bursary Funding and other supporting
documentation, as necessary, to the Human Resource Planning Sub-Committee for approval at the
beginning of each fiscal year. Approved bursaries expire at the end of each fiscal year.
2. The Human Resource Planning Subcommittee notifies all RHAs of approved bursaries for each fiscal
year.
3. Recipients contact an RHA to determine if a bursary is available for a position, or the RHA recruits
an incumbent for the bursary.
• If RHAs have been unsuccessful in offering an approved bursary and can provide evidence that
all avenues to attract a recipient currently enrolled in a health professional program have been
exhausted, RHAs may apply for an enhanced bursary for the position. Special consideration
may be given where an RHA can provide workforce planning data (ex: anticipated turnover,
retirements, service expansion, etc.) that shows an increased demand for the health professional
due to retirements or expanded health services.
• Requests for enhanced bursary funding will be submitted to the Director of Health Workforce
Planning and approved by the Department of Health and Community Services. Requests are
subject to available funding.
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4. The RHA facilitates the signing of a service agreement with the incumbent and submits the signed
agreement, completed bursary application form and verification of enrollment to the Health Workforce
Planning Division for approval.
5. Upon receiving approval, the RHA issues the bursary cheque before the deadline of January 31
st
of
each fiscal year, or 3 months prior to program completion, whichever occurs first. Bursaries awarded
within less than 3 months before program completion must be taxed.
6. All bursary payments must be made to the recipient prior to program completion.
7. The RHA offers employment to the recipient within 30 days of program completion in accordance
with the service agreement.
8. RHAs will invoice the Department of Health and Community Services for reimbursement on a
quarterly basis.
Schedule B.
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Collection Policy – Regional Health Authority (RHA) Receivables
Revision Date: September 2015
Purpose:
This policy outlines the collection of outstanding amounts on defaulted incentives with return-in-service
components for RHA-owned receivables.
Scope:
This policy is limited to the collection of outstanding amounts on defaulted incentives that have a return-
in-service component for RHA-owned receivables as follows:
A. Health professional incentives, nursing incentives, and physician signing bonuses, where the
RHA co-signs a service agreement with the recipient; and where funding for these incentives is
held at Western Health as the paymaster only. RHAs are directly responsible for issuing and
distributing cheques to the recipients; and Western Health reimburses the RHAs.
B. Medical resident bursaries, where the RHA co-signs a service agreement with the recipient; and
where funding for these incentives is held at Eastern Health as the paymaster only. Eastern Health
is directly responsible for issuing cheques for the recipients of incentive funding, and forwarding
those cheques to the Department of Health and Community Services (HCS). HCS is directly
responsible for forwarding those cheques to all RHAs for distribution to the recipients.
C. Undergraduate medical student bursaries, travelling fellowships and other physician
incentives, where the Minister of Health and Community Services or designate co-signs a service
agreement with the recipient; and, where funding for these incentives is held at Eastern Health as
the paymaster only. Eastern Health is directly responsible for issuing cheques for the recipients of
incentive funding, and forwarding those cheques to HCS for distribution to the recipients. Eastern
Health is not a signatory on the service agreement and there is no employment relationship between
Eastern Health and the recipient.
Policy:
RHAs are responsible for tracking worked service owing on incentives in Categories A and B noted above,
whereas, HCS is responsible for tracking worked service owing on incentives in Categories C. There are
three general circumstances in which a recipient does not fulfill his/her service obligation and, as a result,
they will be required to repay the defaulted amount of the incentive:
• The recipient advises the RHA/HCS that he/she will not commence employment in the position or
establish practice in the defined community/facility as agreed to in the service agreement by the
required start date;
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• The recipient does not commence employment in the position or establish practice in the defined
community/facility as agreed to in the service agreement and does not advise the RHA/HCS; or
• The recipient commences employment but advises the RHA/HCS of his/her intent to leave the
position or practice before the service obligation is fulfilled (i.e. acceptance of a position elsewhere
or failure to maintain licensure in Newfoundland and Labrador).
In accordance with the recipient’s service agreement:
• Interest on the amount to be repaid by the recipient is calculated retroactively from the date the
money was advanced to or on behalf of the Recipient, and will compound on the outstanding
balance as of the end of the month. The interest rate is the Bank of Canada prime rate plus two
percentage points.
• The recipient may be required to pay reasonable costs, including but not limited to costs associated
with advertising, relocation expenses, recruiting firm fees, site visits by candidates, and other such
costs incurred by the RHA/HCS as a result of the recipient’s default necessitating recruitment of a
replacement professional. These costs would be calculated for the period of time until a
replacement professional is found, but in any event not exceeding the duration of the service
agreement.
Receivables:
As these incentives are RHA-owned receivables, collection of defaulted amounts is the responsibility of
RHAs. Recipients submit payment on defaulted incentives directly to 1) the RHA as named in their return-
in-service agreement for incentives in Categories A and B, or 2) Eastern Health for incentives in Category
C, to be recorded as RHA revenue. Cheques from recipients are payable to Eastern Regional Health
Authority, Central Regional Health Authority, Western Regional Health Authority or Labrador-Grenfell
Regional Health Authority.
A. For health professional incentives, nursing incentives, and physician signing bonuses:
o Defaulted amounts collected by the RHAs are forwarded to Western Health as the paymaster
on a quarterly basis until all the defaulted amounts from the recipient is collected. RHAs will
advise HCS on a quarterly basis of the defaulted amounts collected from the recipients, and the
amount forwarded to Western Health.
o Receivables from collection of defaulted outstanding amounts on these defaulted incentives are
reinvested in the appropriate fund at Western Health to create future incentives based on
direction from HCS, and are recorded on applicable financial records.
B. For medical resident bursaries:
o Defaulted amounts collected by the RHAs are forwarded to Eastern Health as the paymaster
on a quarterly basis until all the defaulted amounts from the recipient is collected. RHAs will
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advise HCS on a quarterly basis of the defaulted amounts collected from the recipients, and the
amount forwarded to Eastern Health.
o Receivables from collection of defaulted outstanding amounts on these defaulted incentives are
reinvested in the appropriate fund at Eastern Health to create future incentives based on
direction from HCS, and are recorded on applicable financial records.
C. For Undergraduate medical student bursaries, travelling fellowships and other physician
incentives:
o Defaulted amounts are collected by Eastern Health until all the defaulted amounts from the
recipient is collected. Eastern Health will advise HCS on a quarterly basis of the defaulted
amounts collected from the recipients.
o Receivables from collection of defaulted outstanding amounts on these defaulted incentives are
reinvested in the appropriate fund at Eastern Health to create future incentives based on
direction from HCS, and are recorded on applicable financial records.
Collection Procedure:
RHAs will follow the procedure below and document all progressive activities and collection steps
taken for receivables including, but not limited to, record of Statements of Account issues, collection
call activities, reminder letters (Dunning letters) sent, and inclusion on the arrears listing. The
following procedure is noted for collection of defaulted amounts by RHAs:
1. Once a RHA is advised that a recipient will not be fulfilling his/her service agreement, the
RHA will meet with the recipient (either in-person or via telephone) within five business days
of default notice. In the case of incentives in category C, HCS will advise Eastern Health that
a recipient will not be fulfilling his/her service agreement, and Eastern Health will meet with
the recipient (either in-person or via telephone) within five business days of default notice. The
objective of this meeting is to request immediate repayment of the incentive or to arrange the
terms of repayment (payment plan initiated within 30 calendar days), and to gather contact
information, including telephone numbers and forwarding addresses. Specific incentive
policies and service agreements may include additional requirements for repayment.
2. The RHA will send a registered letter to the recipient within:
• Ten business days of payroll completion for the defaulted position for RHA employees;
• Ten business days of having received default notice for fee-for-service physicians; or
• Ten business days after default occurs if the recipient advises of not commencing
employment or establishing practice, or if the recipient fails to commence employment
or establish practice without advising the RHA.
This letter must provide for the recipient the details of the in-person or telephone conversation
including the pre-arranged terms of repayment.
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3. The RHA will contact the recipient via telephone or email immediately if the pre-arranged
terms of repayment have been breached and, if necessary, make alternate repayment
arrangements. If these initiatives do not achieve repayment, the RHA will send a letter to the
recipient outlining the decision to request collection agency intervention.
4. For amounts equal to $5,000 or less, the RHA will assign the account to at least one collection
agency. If the agency is unable to collect the debt when all reasonable efforts have been
exhausted, then the account will be sent to another collection agency if the RHA has multiple
collection agencies on contract. For amounts over $5,000 and less than $25,000, the RHA will
commence legal action in Small Claims Court. For amounts equal to $25,000 of more, the RHA
will commence legal action in Supreme Court. The RHA is responsible for initiating any
actions against the recipient as a result of the judgment, which may include instructing the
Sheriff’s office to take appropriate action and identifying assets (i.e., bank accounts, salary,
etc.) for distraint under the Judgment Enforcement Act.
5. If all reasonable efforts have been exhausted to collect the debt, then RHAs may request
support from the committee responsible for each incentive to initiate the Debt Write-Off
Procedure noted below. These committees may include the HR Planning Sub-Committee for
nursing and other health professional incentives, the Provincial Signing Bonus Committee, or
the Provincial Physician Bursary Committee. Requests for write-offs are considered annually
at the first committee meeting scheduled in the fiscal year.
6. If the appropriate committee support write-off at that time, then the Debt Write-Off Procedure
will be initiated.
Debt Write-Off Procedure:
For all RHA-owned receivables, the Debt Write-Off Procedure below shall apply.
1. If the appropriate Committee supports the debt write-off request, the Committee will submit a
letter requesting approval for debt write-off and provide a full summary of the collection efforts
to the Departmental Controller and either the Director of Health Workforce Planning (for all
non-physician incentives) or the Director of Physician Services of HCS (for physician
incentives).
2. The Departmental Controller and the Director of Health Workforce Planning or Director of
Physician Services will review the letter and will:
a. Recommend that the Deputy Minister approve debt write-off for that incentive, or
b. Recommend alternative strategies for debt collection to the Committee.
NOTE: Debt write-off is an accounting process that does not affect the obligation of the debtor to
repay. Legally, amounts can be recovered after they are written off.