What are Alternative Payments?

Alternative Payments (AP) represent the remuneration provided to physicians who deliver services through methods other than fee-for-service. The AP models included within the scope of the Physician Main Agreement include Service Contracts, Sessional Contracts and Salary Agreements. Approximately 30% of physicians in British Columbia receive remuneration through AP models.

Alternative Payment updates

August 2026, service contract and salary agreement payment ranges

As part of the 2025 Physician Main Agreement (PMA), $100.2 million in new funding has been provided to increase the payment ranges for eligible physicians working under Service Contracts and Salary Agreements within the PMA framework. The goal of this funding is to help attract and retain physicians in these roles and to reduce pay differences among physicians working in different practice categories.

The 2025 Allocation Committee, a joint committee of Doctors of BC and the government, will determine how this funding is allocated across the Payment Ranges.

To inform this process, physicians, physician groups, and Sections are invited to submit proposals on how these funds should be allocated. Physicians with similar practice types are encouraged to coordinate and, where appropriate, submit a group application.

Proposals must be submitted by September 20, 2026, either by:

Submissions should provide relevant information and evidence on issues within the Allocation Committee's mandate, including disparities between Payment Ranges and other factors affecting the recruitment and retention of physicians working under Service Contracts and Salary Agreements. 

The Alternative Payment Physicians Issues Committee and the Allocation Committee have identified principles and processes to inform their positions in discussions with government. Further information on the Allocation Committee’s mandate, background information on alternative payments, recruitment and retention considerations, the processes the Doctors of BC members of the Allocation Committee will follow, and the principles that will inform its decisions is available in the Allocation Committee Advice and Guidance Document.

June 2026, workload funding

As part of the 2025 Physician Main Agreement (PMA) negotiations, the government committed to providing new funding to increase Full-Time Equivalents (FTEs) to address workload pressures experienced by physicians working under existing Service Contracts and Salary Agreements within the PMA framework. 

The PMA includes a process for physicians who have experienced significant and sustained increases in workload to seek funding to add new FTEs. As part of this process, the government has prepared an application for physicians to use when submitting proposals for new funding as well as a document providing advice and guidance for physicians submitting proposals.

To apply for 2026/27 workload funding, physicians must submit their proposals to their Health Authority by July 29, 2026.
 

September 2024

In August, the Government announced its Workload Funding Process decisions for 2024/25 for Service Contracted and Salaried Physicians experiencing significant and sustained increases in workload.

In total, 96 applications requesting funding for 269.6 FTEs were submitted by Physicians.

Pursuant to the processes outlined in the 2022 Alternative Payments Subsidiary Agreement, the Government has allocated $42.4 million dollars to support 103.2 new FTEs. 80 of the 96 applicants received additional funding through the Workload Funding process this year.

Future Workload Funding processes will be determined as part of the 2025 PMA Negotiations.

April 2024

The 2022 PMA provided Service Contracted and Salaried Physicians with General Increases, Cost of Living Increases and, if applicable, Allocation Committee Increases.

The 2022 PMA General Increases were applied to the Payment Ranges on an equal dollar per FTE basis, based on 3.0% for 2022/23, 2.0% for 2023/24, and 1.0% for 2024/25. The equal dollar increases for the Service Contract Payment Ranges and Salary Agreement Payment Ranges are as follows:

YearService Contract Payment RangesSalary Agreement Payment Ranges
2022/23$11,022$9,841
2023/24$7,348$6,561
2024/25$3,568$3,186

The Cost of Living Increases are applied on an across the board basis to all of the Payment Ranges. The Cost of Living Increases are 1.25% and 1.0% in 2023/24 and 2024/25, respectively.

The General Increases for 2022/23 and 2023/24 as well as the Cost of Living increase for 2023/24 were applied on an interim basis pending the conclusion of the Allocation Committee on further targeted increases.

The Allocation Committee, a joint committee of Doctors of BC and Government representatives, reached an agreement on the allocation of $31.2 million over the three years of the PMA to address issues of disparity between the different practice categories and the increased cost of business. Read the consensus decision of the Allocation Committee describing the agreement and increases for details.

The adjusted Service Contract and Salary Agreement Payment Ranges, inclusive of General Increases, Cost of Living Increases and Allocation Committee increases, are found below:

April 1, 2022/23 Final Service Contract Payment Ranges

April 1, 2022/23 Final Salary Agreement Payment Ranges

April 1, 2023/24 Final Service Contract Payment Ranges

April 1, 2023/24 Final Salary Agreement Payment Ranges

April 1, 2024/25 Final Service Contract Payment Ranges

April 1, 2024/25 Final Salary Agreement Payment Ranges

Workload funding process decisions

2024/25 Workload funding process decision summary
2023/24 and 2024/25 Workload funding process decisions

The 2022 PMA provided a total of $128.75 Million to fund additional full-time equivalents of Physician Services (the FTEs) to address workload pressures of Physicians on Service Contracts or Salary Agreements. This funding was released over two years. The outcome of the funding process resulted in a decision in November 2023 to allocate the first $86.35 Million for the 2023/24 fiscal year, and in August 2024 the remaining $42.4 Million was allocated for the 2024/25 fiscal year, thereby fully allocating the $128.75 Million provided for in the 2022 PMA.

Future Workload Funding Processes will be determined under the 2025 PMA.

Sessional Rates

The following document summarizes updates to Sessional rates effective April 1, 2023.

2024 Sessional Rates
2023 Sessional Rates
2022 Sessional Rates
2021 Sessional Rates
2020 Sessional Rates

APSA

The 2022 Alternative Payments Subsidiary Agreement (APSA) is negotiated between Doctors of BC and Government. Part of the 2022 Physician Master Agreement (PMA), APSA details the employment conditions, contract standards and remuneration rates for all non-fee-for-service physician compensation.

Service Contract

A service contract is between a physician as an independent contractor and an Agency or the Government. A service contract will detail specific deliverables and working conditions, a level of service (usually expressed in hours per year) and a rate of remuneration based on FTE designation and range placement.

2022 PMA—Service Template Contract (Individual)
2022 PMA—Service Template Contract (Group)

Sessional Contract

A session is defined as 3.5 hours of service. Sessions can consist of clinical or administrative work or a combination of both. Rates of remuneration for sessions are negotiated between Doctors of BC and the Government and are listed in APSA.

2022 PMA—Sessional Contract Template (Individual)
2022 PMA—Sessional Contract Template (Group)

Salary

Salaried physicians are considered employees of the organization with which they enter into a Salary agreement. As such, these physicians receive regularly scheduled remuneration along with any benefits or special employment arrangements provided by the employer.

2022 PMA—Standard Terms and Conditions Under Salary Agreements