Sure, it does. But most don't care. Potential financial gain is the main driver of our immigration system.
Competition between locals and foreigners hasn't driven down salaries in the USA, so why would it happen here? The fact is, even when you bring in foreign MDs into a private system, the demand will still be greater than the supply. Physicians get paid their hefty salaries because their skills and talents demand it. I don't know where you got this fantasy of yours from, but the fact is that the provincial governments are the only thing keeping Canadian physician salaries as low as they are.
It still won't be enough to get salaries down to your target.
In this case, they have no other alternative. Do you think they'll still be accepting $12/hr once they are legally able to practice medicine in Canada?