Mr Lilo says many specialized local doctors have left in search for attractive workplaces overseas.
The Prime Minister says the signing ceremony is the first step taken by the government to retain local doctors.
Meanwhile, Chief Executive Officer of the National Referral Hospital Dr George Manimu thank Prime Minister Lilo and his Government for contracting doctors.
He adds, with the signing, doctors will now look forward to an attractive package for their service.
Dr Manimu adds, this step will address the shortage of Doctors in Hospitals around the country.
He says the contract only covers Heads of Departments and Specialized Doctors, not general duty doctors.