The structural changes known as the "New Era for Patient-Centred Health Care" (the "New Era") are intended to: (1) provide high quality patient-centred care; (2) improve health and wellness for British Columbia; and (3) create a sustainable, affordable public health care system.

The health authorities were instructed to produce health services delivery plans adhering to provincial standards in the redesign plans. Furthermore, each health authority had to sign a performance agreement. Finally, the health authorities were given a three year budget cycle (2002-2005) which is frozen for the duration.

The Health Employers Association of B.C. (HEABC) which is the bargaining agent for the Hospitals responds by applying to the LRB in August of the same year seeking to have Residents declared students and PAR decertified. The HEABC contends that Residents are not integral to the Hospitals operations. Rather, Residents function much like student nurses whose absence would not be noticed. In the alternate, should the LRB find that Residents are employees, the HEABC submits that UBC is the appropriate employer of Residents. UBC opposes the HEABC's submission that it is the appropriate employer of Residents but takes no position on the student argument. PAR begins an extensive lobby campaign and hires a researcher to "prove" that Residents provide service to the Hospitals.

In the Spring of 1997 PAR successfully lobbies the then Ministry of Health to become involved in an attempt to find a solution.

On July 21, 1997, a case management meeting is held at the LRB during which the HEABC concedes that Residents are employees but continues to maintain that UBC is the appropriate employer. UBC is represented by counsel and disagrees that it is the employer of Residents. A full hearing is scheduled for January 1998. It is subsequently adjourned. In 2001 the HEABC advises the LRB that it is dropping its application.

In June, the BCMA Board of Directors approves a FFS system of differential fees for new entrants to practice; the "Point System". Under the Point System new entrants to practice are issued a geographically restricted billing number at 50%, 75% or 100% of billings dependent on whether or not the area of the province he/she wishes to practice is over-serviced or under-serviced. All areas of the Province are deemed overserviced for general practice meaning any new entrant to practice receives 50% of FFS. After having collected 100 points a physician receives an unrestricted billing number to practice anywhere in the province at 100%. In general, it takes 5 years to obtain 100 points. The only hurdle to implementation is the 1992 PAR amendment to The Medical and Health Care Services Act prohibiting differential fees based on years in practice.

In July, PAR's amendment to The Medical and Health Care Services Act is repealed thus enabling the Point System.

Dr. Don Young, PAR's then president, submits two articles to the BCMJ deriding the Point System. One of his articles is accepted for publication and the other distributed as a supplement with the same BCMJ issue in which his article runs.

In December, 1996, the Hearing against the Point System and Interim Measures concludes and on July 30, 1997 Madame Justice Levine rules that the Interim Measures and Point System violate the Charter of Rights and Freedoms. She also rules that the Medical Services Commission does not have the authority to implement the Point System and Interim Measures. In other words, she rules in PAR's favor on both the administrative law arguments and the Charter arguments. The Point System and Interim Measures are struck down. PAR applies to the court for Costs.

On August 28, 1997 The Attorney General of B.C. files a Notice to Appeal Madame Justice Levine's decision, and the BCMA seeks and is granted intervener status in support. Mr. Justice Hall dismisses the appeal in 1999.

The LRB conducts a hearing with St. Paul's Hospital selected as the "test" site and in 1976 rules that Residents are employees of the Hospitals. The decision, known as the Weiler Decision, paves the way for PARI-B.C. to collectively represent Residents and Internes in the British Columbia. Residents' organizing efforts and Residents collectively and individually now have the protection of the Labour Relations Code. PARI's primary goal is to achieve equitable wages for its members.

R2 - $7,980 annum
R3 - $8,580 annum
R4 - $9,900 annum
R5 - $10,680 annum

Due to budget cuts the hospitals administrators unilaterally reduced Resident salaries and pay Residents according to duties.

Residents recognize that other associations made gains from organizing into a cohesive bargaining unit and so PARI-B.C. begins actively organizing. At the helm are Dr. Ken Dubeta as President, Dr. W. Cyr, Vice-President, and Dr. Tom McMurtry Secretary-Treasurer. They too are threatened with sanctions and termination.

The Society of Medical Residents and Internes of Vancouver formed the Professional Association of Residents and Internes (PARI-B.C.) as its bargaining arm. Its goals were to: (a) protect the interests of internes and residents in all matters, (b) improve teaching programs, (c) achieve adequate remuneration and working conditions.