Starting January 1, 2025, Fee-for-Service (FFS) physicians in Ontario will experience a temporary 13% fee increase. This marks a change to the usual timeline, as increases are typically implemented on April 1 each year. The Ministry of Health has introduced this change earlier than expected as part of the 2024-2028 Physician Services Agreement (PSA).
9.95% Compensation Increase for Q1 2025
From January 1 to March 31, 2025, a temporary 9.95% across-the-board (ATB) increase will apply to all Fee Schedule Codes (FSCs). This adjustment aligns with the Year 1 Arbitration Award of the PSA. The increase is designed to ensure fair compensation for physicians until the usual April adjustment.
This temporary 9.95% increase will combine with the 2.8% ATB increase from the 2021-2024 PSA, creating a compounded 13.03% overall increase for services rendered during the first quarter of 2025.
Key Takeaways:
- Effective Period: January 1, 2025 – March 31, 2025
- Temporary Increase: 9.95%
- Total Increase: 13.03% (combining 9.95% and 2.8%)
- No Changes: The Schedule of Benefits will not be updated.
The details of this change are available in Bulletin Number 241204, issued by the Ministry of Health on December 24, 2024. The ministry and the Ontario Medical Association (OMA) have worked together to implement this adjustment as part of their ongoing efforts to enhance physician compensation.
Impact on Physicians
This temporary increase aims to reflect the collaborative efforts between the Ministry of Health and the OMA to ensure physicians receive timely, fair compensation. Physicians should review their billing systems to ensure they align with the updated Fee Schedule Master (FSM) during this period.
RexBill: Ready for the Temporary Fee Increase
At RexEMR Inc., we’ve already made the necessary updates to RexBill to accommodate the 13% fee increase. This means no disruptions for your practice. Our system will automatically handle the adjustment, making the billing process smoother for you.
We are proud to maintain a 99% accuracy rate in OHIP billing, minimizing errors and maximizing your revenue.
Currently, RexBill is included in the RexEMR enterprise solution. However, we are excited to announce that RexBill will soon be available as a standalone product. This will give those looking for a dedicated billing solution easy access to our best-in-class system.
For more information or questions, feel free to reach out to us at 519-981-0156 or info@rexemr.com. Visit rexemr.com to stay updated on all our solutions.
