TORONTO — A group of Ontario health-care providers says changing the way doctors in hospitals are paid could save the province more than $200 million a year.

The coalition wants physicians to be under contract to hospitals rather than the usual method of being granted hospital privileges.

Ontario is currently paying $842 per capita a year for physician services overall -- the average for the other provinces is $675.

The coalition also recommends more end-of-life care be provided in the community rather than in hospitals, and crisis care for those with mental illness be made available in facilities other than hospital ERs.

The report was released today by the Ontario Hospital Association, the Ontario Association of Community Care Access Centres and Ontario Federation of Community Mental Health and Addiction Programs.

The recommendations come as the Ontario government is trying to eliminate fees for pharmacists in an attempt to cut generic drug costs and lower escalating health-care costs.