The ministry will apply relativity-adjusted increases to physician payments effective April 1, 2025.
The Ministry of Health (ministry) and the Ontario Medical Association (OMA) have been working together to implement physician compensation increases in accordance with the Arbitration Award for year 1 of the 2024-2028 Physician Services Agreement (PSA).
Effective April 1, 2025, physician fee-for-service payments and automated payments in the Medical Claims Payment System (e.g. capitation, premiums, and salaries) will receive a relativity-adjusted increase for services provided between April 1, 2025 to March 31, 2026. Please note, the relativity-adjusted increases replace the PSA Year 1 and Year 3 compounded (13.0286%) temporary payment increase that ended on March 31, 2025. The value of Fee Schedule Codes (FSCs) reverted to the rates listed in the Schedule of Benefits (Schedule) for claims with service dates on or after April 1, 2025. Please refer to the Schedule available on the Ministry of Health’s website at OHIP Schedule of Benefits and fees under Schedule of Benefits for Physician Services for current FSC values. Please see Bulletin 250401 for more information.
Relativity-adjusted payments will be made on the monthly Remittance Advice (RA), beginning on the June RA. Please note, the relativity-adjusted payments on the June RA will include payments for eligible services claimed in April and May 2025.
Effective April 1, 2025, the base funding for Specialist Physician Alternative Payment Plan payments will be increased by a relativity-adjusted percent or other percent agreed to by the parties. The outstanding 9.95% related to 2024/25 will be issued in two sums – one for base funding and one for shadow billing. Further details will be provided in a future INFOBulletin.
Relativity-adjusted Increases
The total compensation increase is 9.96%, which represents the cumulative increase from Year 3 of the 2021 PSA and Year 1 of the 2024 PSA (the compounded value of 2.8% and 6.965% (Year 1 minus targeted)). The distribution of the total compensation increase across physician specialties is subject to the relativity adjustments agreed to between the ministry and the OMA.
Relativity-adjusted physician payment increases will be applied to all physician payments set out in Table 2.
Fee-For-Service (FFS) payments (paid and shadow billed) will receive relativity-adjusted increases based on the individual physician’s derived specialty.
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