The government and Alberta’s doctors have been at the bargaining table for two years - and although the Health Minister has suggested there was no chance of a pay increase before the budget was released, the province is asking doctors to take a major pay cut.

CTV News has learned Health Minister Fred Horne has written to doctors, and asked them to take what adds up to a 22.5 percent pay cut.

The cut would add up to $275 million dollars.

The development comes the same week facilitators suggested the dispute move to arbitration.

It’s a move the Alberta Medical Association was on board with.

“Subsequent to that, I received a letter from Minister Horne saying negotiations are over, the budget is out, and we need $275 million cut  from the AMA physician budget, and you have one week to give us how you’re going to do that,” AMA President Dr. Michael Guiffre said in a phone interview with CTV Calgary.

Liberal Health critic Dr. David Swann described the government’s handling of the contract negotiations as a “gong show”, but said the government wasn’t entirely to blame for the impasse.

Dr. Swann said both sides are entrenched in their positions – and an independent third party would have to take the massive issue on.

Dr. Giuffre described the possible repercussions of this development as ‘devastating’.

“It’s devastating in terms of the impact to doctors and perhaps even more devastating for how the result will happen for patient care access,” Dr. Giuffre said.

The AMA has one week to respond to the government.

With files from CTV Calgary