Ontario’s 25,000 doctors have given Premier Dalton McGuinty’s bid for labour peace a much-needed shot in the arm.

On Sunday, the Ontario Medical Association ratified a new contract with 81 per cent support for a deal inked last month with the Liberal government.

It comes on the eve of the first job action by the Elementary Teachers’ Federation of Ontario on Monday and against the backdrop of difficult talks with other public servants as the cash-strapped province struggles to impose a wide-ranging two-year wage freeze.

“These negotiations were challenging but I’m very pleased we were able to roll up our sleeves and reach an agreement that not only enhances patient care but also protects the improvements that have been made in recent years,” said OMA president Dr. Doug Weir.

“Ontario’s doctors demonstrated tremendous leadership by being active partners in helping the province with its fiscal challenges,” said Weir, noting physicians will help find $400 million in savings for the health-care system.

“If we are going to build on our successes in recent years to improve health care in Ontario, doctors and government need to continue to work in partnership,” he said.

Health Minister Deb Matthews hailed the ratification as “an important milestone in our transformation of Ontario’s health care system, ensuring it is there to meet the needs of our children and grandchildren.”

“Ontario’s doctors have demonstrated real leadership today. They worked with us to find creative solutions under challenging fiscal circumstances,” said Matthews.

“With their support, we are able to strengthen the health care services we provide our seniors, such as home care and house calls. This agreement marks a renewed era of partnership with doctors as we work together to transform and sustain our precious health care system.”

Under the deal, there is 0.5 per cent payment discount for the doctors the OMA and the Ministry of Health will work to replace by “finding additional evidence-based savings.”

The ministry says this includes “reducing unnecessary pre-op cardiac testing for low-risk, non-cardiac patients,” updating annual physical exams for patients, and ensuring colonoscopies and cervical cancer screening meet Cancer Care Ontario guidelines.

These savings should offset a $100-million increase over two years of the overall “physician services” budget, which is now $11.1 billion annually.

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Since the Liberals took power in 2003, doctors’ average pay has risen about 75 per cent — from $220,000 to $385,000

The new contract runs from last Oct. 1 to March 31, 2014