July 16, 2025
Dear colleagues,
Over the past several weeks, there have been concerns and conversations in the public, and the workplace, about the new Physician Services Agreement (PSA), which was signed last year.
I want to be clear: these are important conversations, and Health PEI will always support meaningful and constructive dialogue. Together with the Medical Society of PEI (MSPEI) and the Government, we are united in our belief that this tri-party agreement is a transformative milestone for our entire health care system.
Yesterday, Health PEI, the Department of Health and Wellness, and MSPEI agreed to enter mediation in good faith to resolve outstanding items related to the PSA. This is a positive and important step forward, allowing us to focus on the right conversations, in the right setting, with the shared goal of improving access to care for all Islanders.
As these conversations progress, we will continue to work together to improve access to primary care for Islanders.
I want to thank each of you for your patience, professionalism, and dedication as we move forward. Together, your hard work and daily contributions are enabling us to build a high performing healthcare system.
Sincerely,
Mel
Melanie Fraser
Chief Executive Officer
Health PEI
Frequently Asked Questions (FAQ)
1. What is the Physician Services Agreement (PSA)?
The PSA is a landmark agreement between Health PEI, the Department of Health and Wellness, and the Medical Society of PEI (MSPEI). It outlines how physicians are compensated, how they work within the healthcare system, and how we collectively improve access to care for Islanders. This agreement is the first of its kind in Canada and supports the implementation of Patient Medical Homes and a more collaborative, data-informed model of care.
2. Why are we entering mediation?
We are proud of the Physician Services Agreement (PSA) and see the move to mediation as a positive and important next step. Mediation is one of the collaborative tools built into the PSA and reflects our shared commitment to its successful implementation. It is designed to support effective rollout and ensure all parties remain aligned. This decision follows a period of meaningful and constructive dialogue between Health PEI, the Medical Society of PEI (MSPEI), and the Department of Health and Wellness. Mediation allows us to focus our energy on the right conversations, in the right setting, to improve access to primary care for all Islanders.
3. What does this mean for me?
For most staff, the mediation process will result in minimal changes. Day-to-day operations remain unchanged—it’s business as usual across all sites and services. Your work continues to be essential, and our focus remains on delivering high-quality care to Islanders. While mediation is underway, the implementation of proposed key performance indicators (KPIs) is paused until they are finalized. In the meantime, an interim patient affiliation plan has been introduced to ensure continuity of care, including for those currently on the patient registry. These steps reflect a shared understanding that meaningful transformation takes time, collaboration, and thoughtful planning.
4. What are the next steps?
All parties remain committed to working together to support the successful implementation of the PSA. Health PEI, MSPEI, and the Department of Health and Wellness will continue through good-faith mediation to finalize the KPIs and their benchmarks. Once agreed upon, the first year of implementation will focus on collecting baseline data – not performance evaluation– to support informed, evidence-based decision-making. If mediation does not resolve all outstanding issues, the PSA includes provisions for arbitration to ensure continued progress. Our shared goal remains unchanged: to improve access to care, support physicians, and build a stronger, more sustainable healthcare system for all Islanders.