Significant Fee Increase for Ontario Physicians Effective January 1, 2025

Starting January 1, 2025, Fee-for-Service (FFS) physicians in Ontario will see a 13% increase in their payment rates, marking a notable change in the annual adjustment timeline. Normally implemented on April 1 each year, the Ministry of Health has introduced this interim increase earlier than usual as part of the new 2024-2028 Physician Services Agreement (PSA).

Temporary 9.95% Compensation Increase

For the first three months of 2025 (January 1 to March 31), the ministry will apply a temporary 9.95% across-the-board (ATB) increase to all Fee Schedule Codes (FSCs). This adjustment aligns with the Year 1 Arbitration Award outlined in the PSA and ensures timely compensation for physicians before the next scheduled adjustment in April.

This temporary increase builds upon the 2.8% ATB increase carried over from the previous 2021-2024 PSA, resulting in a compounded 13.03% overall increase for services rendered during the first quarter of 2025.

Key Highlights:

• Effective Period: January 1, 2025 – March 31, 2025
• Temporary Increase: 9.95%
• Compounded Adjustment: 13.03% (combining 9.95% and 2.8%)
• Application: Across-the-board increase to Fee Schedule Codes (no updates to the Schedule of Benefits)

This change is detailed in the Ministry of Health’s Bulletin Number 241204, issued on December 24, 2024. The bulletin emphasizes the ministry’s collaborative efforts with the Ontario Medical Association (OMA) to enhance physician compensation as part of the newly implemented PSA.

Implications for Physicians

This adjustment reflects the ministry’s commitment to aligning physician payments with negotiated agreements, ensuring fair compensation for services rendered. Physicians are encouraged to review their billing systems to confirm alignment with the updated Fee Schedule Master (FSM) during this period.

RexBill: Ready for the Change

At RexEMR Inc., we’re committed to keeping your practice running smoothly. Our billing system, RexBill, has already made the necessary updates to accommodate the 13% fee increase, ensuring a seamless transition for your billing operations.

We take pride in maintaining a 99% accuracy rate in OHIP billing, helping physicians maximize their revenue while minimizing administrative effort.

Currently, RexBill is offered as part of the RexEMR Inc enterprise solution. However, we’re excited to announce that RexBill will soon be available as a standalone product, enabling clinics and physicians seeking a best-in-class billing system to access it independently.

For more information, call us at 519-981-0156 or email us at [email protected]. Visit rexemr.com to stay updated on all our solutions.

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