TORONTO — The Ontario government and the Ontario Medical Association (OMA) have finalized the remaining three years of the 2024–28 Physician Services Agreement (PSA) through arbitration, unlocking funding and reforms aimed at expanding access to primary care and stabilizing hospital services across the province.
The arbitration award, announced September 18, 2025, introduces new measures designed to ensure families can access care “when and where they need it,” while also addressing physician recruitment and retention challenges. Officials say the agreement will provide predictable funding to support staffing across hospitals and clinics, ensuring timely access to care in both urban centres and rural communities.
Focus on Primary Care
Ontario currently leads the country with the highest percentage of residents attached to a primary care provider, the largest health-care workforce, and the highest compensation rates for primary care physicians in Canada. Building on that foundation, the new award includes targeted investments to modernize the Family Health Organization (FHO) model — a central pillar of the province’s primary care delivery.
These investments are expected to attract and retain more physicians while connecting more patients to family doctors. The measures include incentives for physicians to take on new patients, greater support for after-hours services, and funding to shift some procedures out of hospital emergency departments and into clinics.
“The agreement increases access to primary care and provides stable funding for staffing across the province, ensuring families can access the care they need, when and where they need it,” the Ministry of Health said in its announcement.
Support for Hospital Services
Beyond primary care, the arbitration award introduces new funding measures for hospital-based services. This includes resources to support in-hospital anesthesia, hospital on-call coverage, and other initiatives designed to preserve timely access to specialist and surgical care.
The government and the OMA highlighted these investments as part of a broader strategy to safeguard Ontario’s health-care system at a time of increasing demand. Officials said the measures reflect a commitment to ensuring continuity of care while easing pressure on emergency departments and inpatient services.
Building on Past Investments
The arbitration outcome follows earlier phases of the PSA, which already delivered significant increases in physician compensation and service funding.
In September 2024, the Arbitration Board issued the Year 1 award, which boosted physician compensation by $1.7 billion. In April 2025, a mediated arbitration award expanded funding to increase access to physician services, with a focus on rural and northern Ontario as well as stabilizing emergency department staffing.
The latest award builds on those foundations, supporting the government’s wider health-care agenda. That agenda includes expanding medical education — the largest such expansion in more than a decade — and offering new programs that cover tuition and supplies for family doctors. It also supports the establishment of community surgical and diagnostic centres to reduce wait times.
“To deliver on its plan to protect the provincial health-care system, the government will continue to work with the OMA to implement the next phase of this agreement which builds on Ontario’s historic investments,” the Ministry said.
The Role of the OMA
The Ontario Medical Association represents physicians across the province, advocating for their working conditions as well as for patient care standards. Its involvement in the PSA ensures that physician perspectives are included in negotiations over funding and service delivery.
With health-care systems across Canada facing strain from rising patient demand, workforce shortages, and cost pressures, the agreement between the province and the OMA is expected to provide stability in Ontario while signaling a commitment to sustained investment.
A Broader Strategy for Health Care
The government has framed the agreement as part of a multi-pronged approach to strengthen Ontario’s health-care system. By modernizing primary care models, supporting hospital services, and expanding education and training pipelines, officials hope to position the province to meet long-term needs.
For Ontario families, the most immediate impact is expected to come in improved access to family doctors, expanded clinic services, and greater consistency in hospital staffing. For physicians, the deal provides financial stability and new incentives aimed at reducing workload pressures while encouraging doctors to take on new patients.
While challenges remain in addressing wait times, rural coverage, and system capacity, the arbitration award represents a significant step in advancing Ontario’s plan to maintain what the province describes as one of the strongest health-care systems in Canada.
