Why did the CMA decide to sell MD Financial Management?
The decision to sell MD Financial Management (MD) supports the CMA’s new 2020 strategic vision — and ensures the association will be supporting members and better health for decades to come.
Additionally, the time was right for MD to partner with a large bank to secure its continued success. MD has been an industry leader on many fronts and wants to continue to evolve to meet the financial needs and life goals of physicians. This next phase of MD’s journey will enable it to deliver even more value to all of Canada’s physicians and their families.
Why weren’t members consulted?
We recognize that our members wanted to be engaged in this conversation. It was not possible to consult with our membership on the sale of MD as this would have destabilized MD, its clients and its employees.
Why is the CMA the only beneficiary of the proceeds?
MD is not a cooperative or a publicly-traded company. The CMA is the owner. The CMA Board of Directors will be establishing a separate board to invest and steward the proceeds of this sale.
CMA members will have many opportunities to provide input on our advocacy and policy work, and to create programs to support physicians and better health.
What does this mean for MD clients? Will I continue to be served by my MD advisor?
The transition will be seamless. Scotiabank is maintaining MD’s brand, its unique physician-specific service model, its financial products and the expertise of the MD team.
MD advisors will remain salaried employees and will continue to provide the same independent advice.
Why was Scotiabank selected?
A rigorous process was undertaken to identify the best and most suitable acquirer for MD. Several leading Canadian financial institutions submitted fair offers.
With its track record for philanthropy and community support, and its commitment to building on MD’s successes, Scotiabank was the best fit with MD clients and the CMA’s 2020 vision.
Additionally, Scotiabank will work in collaboration with the CMA to invest $115 million over ten years in support of our advocacy goals.
Who made this decision, and how was it made?
The CMA Board of Directors made the decision to sell MD, using a principle-based approach.
Scotiabank was selected for its superior financial services performance, client-centric philosophy, respect for its staff, commitment to Canadian communities and support for the CMA’s vision of a vibrant profession and a healthy population.
Do I need to be a CMA member to access MD services?
The CMA is opening the doors to MD. All physicians and their families can now benefit from MD’s expertise and support, not only those with CMA memberships.
How will CMA members and their patients benefit?
The CMA will focus on its core advocacy role, uniting physicians and their patients to build a robust, rewarding profession and better health care for Canadians. We will remain an independent and influential voice.
The CMA will also engage more physicians by making membership more accessible. Starting in 2019, we’ll be waiving fees for students, residents and retired physicians, and reducing fees to $195 for practising physicians.
How much was MD sold for?
The accepted offer was $2.585 billion. But price was only one of the considerations in this sale. The CMA Board of Directors was looking for a partner who would uphold MD’s unique service-model and financial performance, respect MD clients and staff, and align with the CMA’s 2020 vision to build a vibrant profession and a healthy population.