Ontario Moves to Pay Family Doctors for Administrative Work + Compensation Increases

Context & Background

For years, one of the long-standing frustrations in Ontario primary care has been that family doctors are often not paid (or under-paid) for administrative tasks integral to modern practice: charting, reviewing lab results, completing forms, managing patient follow-ups, etc. These tasks, while non-clinical, consume a substantial amount of physician time.

According to the Ontario College of Family Physicians, family physicians on average spend 19.5 hours per week on administrative work. (spon.ca) Because these tasks are generally uncompensated under older payment models, many physicians feel they are subsidizing parts of their own practices — a factor contributing to burnout and attrition from comprehensive practice.

In recent years, the Family Health Organization (FHO) model in Ontario has been one of the dominant payment frameworks for family medicine. Under FHO, doctors are paid via capitation (a base per-patient payment) and can bill OHIP for certain services, but administrative time is not explicitly recognized.

Amid a broader primary care crisis — with many Ontarians lacking a family physician — the Ontario Medical Association (OMA) and the provincial government have negotiated updates to physician compensation to better align payment with the real work family doctors do.

What’s New: The 2025 Agreement & Arbitration Ruling

In mid-September 2025, a Board of Arbitration, led by Mr. William Kaplan, released its decision on parts of the 2024–2028 Physician Services Agreement (PSA) between Ontario and its physicians. (Omaha's Henry Doorly Zoo and Aquarium)

Key elements of the ruling and agreement:

• A 7.3% increase in physician compensation over Years 2 through 4 of the PSA was awarded. (Omaha's Henry Doorly Zoo and Aquarium)

• This builds on the almost 10% increase already awarded for Year 1 of the agreement. (Global News)

• The new agreement will include funding to support pay for administrative work for family physicians under the updated FHO+ (Family Health Organization Plus) model. (gtachronicle.com)

• Additional investments target recruitment, retention, incentives for enrolling new patients, and after-hours care. (gtachronicle.com)

• The Ontario government also announced the arbitration award via its Ontario Newsroom, citing that this deal increases access to primary care and provides stable funding for staffing province-wide. (Ontario Newsroom)

In short: doctors will not only get regular compensation uplifts, but for the first time, administrative work will be financially recognized.

Why It Matters (Implications & Opportunities)

This development is a meaningful shift in how primary care in Ontario is financed and run. Here’s what it can do (and what to watch out for):

✅ Recognition of Hidden Work

By compensating administrative tasks, the system acknowledges the “invisible work” many family physicians perform outside patient hours. This can reduce job dissatisfaction and burnout, or at least address one key pain point.

✅ Enhanced Recruitment & Retention

One of the goals of this agreement is to make family medicine more financially viable, especially for physicians considering entering comprehensive practice. If compensation is more predictable and covers overhead tasks, more doctors may commit to full practice rather than limiting scope or leaving clinical work altogether.

✅ Strengthening Patient Access

If more physicians feel supported and less burdened by unpaid admin, it may encourage them to take on more patients, thereby helping reduce the number of Ontarians without a family doctor.

✅ Changes to FHO / New Model Design

The shift to FHO+ is significant — it means the existing FHO model is being upgraded to reflect modern practice realities. Physicians entering that model will need to understand how administrative billing, patient complexity, and bonus incentives are structured.

How This Reflects Broader Trends

This shift in Ontario mirrors several international and national trends:

• In many jurisdictions, primary care models are moving toward value-based care and team-based funding (i.e. paying for outcomes plus essential supports).

• Recognising administrative/clerical tasks as billable is part of global advocacy in primary care practice (many physicians globally cite paperwork as a burnout driver).

• For international physicians or recruits, being in a system that rewards comprehensive care — inclusively of admin work — enhances the appeal of relocating, because you’re less likely to be penalized for the behind-the-scenes workload.

For Doctors Considering Moving to Ontario (or Canada)

If you’re a UK-trained or international physician weighing a move to Ontario, here’s how this development should inform your decision:

• Better alignment of compensation: You’ll be entering a province where administrative work is financially recognized and that helps your hourly effective income.

• More predictable models: The PSA increases plus new funding make the financial case more stable than in past years.

• Model choice matters: You’ll want to aim for FHO+ or comparable models that include admin billing, rather than older ones that leave it uncompensated.

• Due diligence is key: When consulting job offers, ask clinics for sample breakdowns (clinical vs administrative billing) so you understand the true earning potential.

• Early planning: Understand the rules and schedule of the new model, variance by region, bonus incentives, and when they take effect.

The new compensation framework marks a decisive moment for Ontario’s healthcare system. Recognising administrative work as part of a doctor’s professional contribution is more than a pay adjustment — it’s a cultural shift. It signals respect for the comprehensive role family doctors play in maintaining the health of communities and the sustainability of primary care.

Explore Opportunities in Ontario

If you’re a UK-trained or internationally licensed Family Physician exploring opportunities abroad, there’s never been a better time to consider Ontario.

At Merrick Global Talent, we work directly with leading medical clinics across the province — helping physicians relocate, secure licensing, and settle into roles that reflect their skills and ambitions.

📩 Explore current opportunities: https://www.merrickglobal.com/vacancies contact us directly at Hello@MerrickGlobal.com for a confidential discussion.