Surveys were made of a sample of physicians before and after the introduction of a national health insurance plan in Montreal, Canada. Although the number of physicians in active practice seemed unaffected by the plan, their average working day was reduced 1.5 hours. Declines ranged from 0.3 hours for general internists to 2.7 hours for general surgeons. The average daily volume of services by physicians in the area also declined because of a decline in telephone consultations, and home and hospital visits. Office visits increased sharply. Changes in the type of services were clearly related to the fee schedule adopted by the government, with large declines in services for which payment was probably inadequate in relation to physician’s time required. If the fee schedule reflected actual collections prior to the health insurance plan, then gross physician income increased as the result of redirecting services to better paying activities.