Our Take On Bulletin 241204: Temporary increases for physician services payments in Ontario through OHIP

The ministry will temporarily increase physician payments by an additional 9.95% for the period January 1, 2025 to March 31, 2025.

Fee Code Table 1: Increases by Fee Schedule Code - Physician Services

Fee Code Table 2: Increases by Fee Schedule Code - Technical and Professional

Great news Ontario Doctors: The now famous Arbitration Award (hosted on the OMA website but referenced and nicely outlined here by JustAnOldCountryDoctor) will now yield a limited time premium on services. The Ontario Ministry of Health (MOH) and the Ontario Medical Association (OMA) are progressing their rolling out the Year 1 compensation increases from the 2024-2028 Physician Services Agreement (PSA).

A temporary 9.95% across-the-board (ATB) increase will be applied to physician service payments for work completed from January 1, 2025, to March 31, 2025. This interim measure will reflect in the Fee Schedule Master (FSM) but won’t yet update the official Schedule of Benefits.

The 9.95% increase for Year 1 is further enhanced by the 2.8% ATB hike from the prior PSA's third year. Together, they deliver a compounded raise of 13.03% to Fee-for-Service (FFS) payments during this three-month period.

The temporary bump in compensation both helps us all understand our need to keep putting physicians first in our compensation models, and underscores the ongoing need for clarity and administrative efficiency in Ontario’s healthcare system. Physicians are showing the healthcare service community that they are a true keystone and it’s clear compensation to them has not been flowing efficiently… however, now more than ever this should inspire and remind all doctors and clinic owners that they must prioritize compensation and workflow to ensure maximum effectiveness.

What we're telling our Ontario Physician clients about this program:

Don’t Treat It Like a Bonus

This is not extra money; it’s a cushion. Leverage it to improve practice efficiency or cover rising costs.

Plan for Reversion and maximize the value of this temporary compensation model.

Think of this as a three-month window to implement sustainable changes. If you’re already breaking even, reinvest in tools or services that enhance profitability and reduce administrative burdens.

Strengthen Your Practice Infrastructure with a portion of these proceeds.

Use this period to address inefficiencies, improve gross profit, and build resilience against future uncertainties. There’s no time like now to take time to work ON your practice, not just IN your practice, with little financial costs.