Bulletin 251007 — 2024 Physician Services Agreement Year 1 Increases
Remaining physician compensation increases for the period of April 1, 2024 to March 31, 2025 will be paid in November 2025.
To: All Physicians, Hospitals, and Integrated Community Health Services Centres
Category: Primary Health Care Services, Physician Services, Community Surgical and Diagnostic Centres
Written by: Physician Relations and Contract Oversight Branch, Physician and Provider Services Division
Date issued: October 31, 2025
Bulletin Number: 251007
Overview
The Ministry of Health and the Ontario Medical Association have been working together to implement physician compensation increases in accordance with the 2024 Physician Services Agreement (PSA).
The Agreement provides for a 9.95% across the board increase over and above the 2.8% across-the-board compensation increase already paid on physician payments for the period April 1, 2024 to March 31, 2025.
Fee-for-service payments from the period of January 1, 2025 to March 31, 2025 have already received the additional 9.95% when the claims were originally paid.
A final compensation increase payment for the period of April 1, 2024 to March 31, 2025 (the period) will be processed and paid on the November 2025 Remittance Advice (RA).
Reporting
For physicians and groups that receive a monthly Remittance Advice through the Medical Claims Electronic Data Transfer (MCEDT), the Accounting Adjustment will reflect the 2024-2025 Compensation Increase payment value at the solo physician or group level based on how the compensation increase payment was processed.
The “Compensation Increase Report” will be delivered to the physician via MCEDT. Physicians will be required to provide permission to their appropriate designees for reviewing and/or downloading this report, if they have not already done so.
The solo report will detail the Total Payments, Percent Increase, and Compensation Increase for each Clinic Code and Payment Element (example: professional Fee-For-Service payments) under which the physician provided services and received a payment in the period.
The group report will detail the Total Payments, Percent Increase, and Compensation Increase for each Payment Element (example: Access Bonus Payment) under which the group received a payment in the period.
The group report will also show the Total Payments, Percent Increase, and Compensation Increase for each physician affiliated to the group during the period.
Further information
The following fee-for-service physician payments, specialist contracts, and programs will receive the compensation increase on physician payments made during the period:
OHIP Claims System payments
- All approved stale-dated claims for the period processed after the first and second interim payments.
Primary Care payments
The following Primary Care models and programs will receive the compensation increase on eligible physician payments during the period:
| Contract Type | Contract Element(s) |
|---|---|
| Homeless Shelter Agreements (HSA) |
|
| Indigenous Primary Health Care Organizations (IPHCO) |
|
| Rural and Northern Physician Group Agreement (RNPGA) |
|
Program Contract-Based payments
Physicians, groups, and other facilities that receive payments outside the Medical Claims Payment System (MCPS) under other payment programs will receive their compensation increase on eligible physician payments during the period:
- Academic Health Sciences Centres (AHSC) Alternative Funding Plan (AFP) Contracts
- Alternative Payment Plan (APP) Contracts
- Emergency Department Alternate Funding Arrangement (EDAFA) Contracts
- Public Health Physicians - Sexually Transmitted Infections (STI) Payments
- Tuberculosis for Uninsured Persons (TB-UP) Payments
- Underserviced Area Program – Nursing Station Physician Outreach
- Underserviced Area Program - Visiting Specialist Clinic Program
- Laboratory Uniform Minimum Level of Compensation (UMLC)
- Hospital Paediatric Stabilization Program
- Hospital On-Call Coverage (HOCC)
- Physician On-Call Coverage (POC)
Payment dates for the 2024-2025 compensation increase payments
The ministry will process final compensation increase payments for payment in the month of November 2025.
Physicians and groups who receive an RA will see the payment deposited on or about November 14, 2025.
2024-2025 compensation increase payments to retired or deceased physicians
The ministry will deposit the compensation increase payments to the solo bank account on file where the bank account has remained open.
Where bank account details are not available, a cheque will be issued payable to the solo physician or to the “Estate of” in the event the physician is deceased.
Cheques will be sent to the same address on file with the ministry that was used for the RA.
No changes to the Schedule of Benefits
The 2024-2025 compensation increases are one-time payments and do not increase physician compensation amounts in funding agreements or fee code values in the Schedule of Benefits.
Appeals process
The percentage increase and the compensation increase payments have been calculated based on the methodology agreed to between the ministry and the OMA in accordance with the PSA and the Agreement.
As such, the agreed-to methodology between the ministry and the OMA does not provide for an appeal process for physicians who received a compensation increase payment and are disputing the amount of the payment that they received.
Keywords/Tags
Physician Services Agreement; PSA; physicians; payments; compensation increase
Contact information
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