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: November 2, 2026
Bulletin Number: 261103

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 PSA provides for a 2.8% across the board increase from Year 3 of the 2021 PSA and Year 1 of the 2024 PSA on physician payments for the period April 1, 2025 to March 31, 2026, including any relativity payments made during the period.

A compensation increase payment for the period of April 1, 2025 to March 31, 2026 (the period) will be processed and paid on the November 2026 Remittance Advice (RA).

Reporting

For physicians and groups that receive a monthly Remittance Advice through the Medical Claims Electronic Data Transfer (MCEDT), the Year 2 (2025-2026) Compensation Increase accounting adjustment will reflect the 2025-2026 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

• Professional fee-for-service physician payments
• Office based technical fee-for-service physician payments (excluding hospital technical fees)
• Facility fees paid to Integrated Community Health Services Centres
• Specialist physician contract payments which are tied to the OHIP claims system through shadow billing
• Community Palliative Care On-Call Coverage (CPOC)
• Ministry of Attorney General Payments (Sexual Assault and Blood Drawing)
• Ministry of Children, Community and Social Services Payments (K Codes)

Primary Care Payments

The following Primary Care models and programs will receive the compensation increase on eligible physician payments during the period:

• Aboriginal Family Health Team (AFHT)
• Blended Salary Model (BSM)
• Blended Salary Model (BSM) - Income Stabilization
• Comprehensive Care Model (CCM)
• Family Health Group (FHG)
• Family Health Network (FHN)
• Family Health Network (FHN) - Income Stabilization
• Family Health Organization (FHO)
• Family Health Organization (FHO) - Income Stabilization
• Family Health Team Specialist Sessional Groups (FHTSSG)
• General Practitioner Focus Practice - Care of the Elderly Model 1 (GPFP-COE1)
• General Practitioner Focus Practice - Care of the Elderly Model 2 (GPFP-COE2)
• General Practitioner Focus Practice - HIV (GPFP-HIV)
• General Practitioner Focus Practice - Palliative Care (GPFP-PC)
• Group Health Centre (GHC)
• Homeless Shelter Agreements (HSA)
• Indigenous Primary Health Care Organizations (IPHCO)
• Nurse Practitioner Physician Collaboration Programs (Primary Care and NPLC)
• St. Joseph’s Health Centre (SJHC)
• Toronto Palliative Care Associates (TPCA)
• Underserviced Area Program – Nursing Station Physician Outreach
• Underserviced Area Program - Visiting Specialist Clinic Program

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 based on the regularly scheduled monthly payment date, or as soon as practicable.

• Academic Health Sciences Centres (AHSC) 
• Alternative Funding Plan (AFP) Contracts
• Alternative Payment Plan (APP) Contracts
• Community Health Centres (CHC)
• Assertive Community Treatment Teams (ACTT)
• Complex Continuing Care On-Call Coverage (CCC)
• Divested Provincial Psychiatric Hospitals (DPPH) Top-Up Funding
• Emergency Department Alternate Funding Arrangement (EDAFA) Contracts
• Hospital On-Call Coverage (HOCC)
• Hospital Paediatric Stabilization Program
• Laboratory Uniform Minimum Level of Compensation (UMLC)
• Medical Officers of Health Funding
• Mental Health Sessional Funding
• Nurse Practitioner Physician Collaboration Programs
• Ontario Fertility Program (OFP)
• Ontario Physician Locum Programs
• Ontario Review Board and Consent and Capacity Boards
• Periodic Ocular Visual Assessment (POVA)
• Physician Health Benefit Program (PHBP)
• Physician On-Call Coverage (POC)
• Psychiatric Stipend Funding
• Public Health Physicians - Sexually Transmitted Infections (STI) Payments
• Public Health Unit Top-Ups
• Rural and Northern Physicians Group Agreement (RNPGA)
• Rural Medicine Investment Program (RMIP)
• Rural Generalist Model (RGM)
• Sioux Lookout Regional Physicians Services Inc. (SLRPSI)
• Telestroke
• Tuberculosis for Uninsured Persons (TB-UP) Payments
• Underserviced Area Program - Northern Physician Retention Initiative
• Underserviced Area Program - Northern RRRI
• Weeneebayko Area Health Authority (WAHA)

Payment dates for the 2025-2026 compensation increase payments

The ministry will process compensation increase payments for payment in the month of November 2026.

Physicians and groups who receive an RA will see the payment deposited on or about November 14, 2026.

2025-2026 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 2025-2026 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

Do you have questions about this INFOBulletin? Email the Service Support Contact Centre or call 1-800-262-6524.

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