Guest guest Posted January 22, 1999 Report Share Posted January 22, 1999 Does anyone have an idea of what percentage of overall revenue per patient visit should go to direct care staff compensation (salary plus taxes plus benefits)? This question was posed to me today by a client trying to cope with the BBA changes? I had never thought of compensation in this exact way. This is a very small provider so overhead is probably a larger percentage of revenue than for a large provider. I have some ideas but would appreciate input from list serve members before responding as this directly relates to one of the client's employee's salary most specifically. Salaries must be reduced to cope with the new payment methodology but we are trying to be as fair as possible. Thanks for any insight. Kay ------------------------------------------------------------------------ Quote Link to comment Share on other sites More sharing options...
Guest guest Posted January 22, 1999 Report Share Posted January 22, 1999 Staff salaries - Compensation as a percentage of revenues is one of several ways of determining salaries. Studying how much the overall compensation package amounts to for comparable work in the same marketplace is another. I once worked for an organization which paid 25% of billings. I have had contracts which paid 50%=>45%=>42%=>40%=>35%=>32% of receipts. Can you recognize a trend there? Consultant firms would like to receive 2.5 to 3.0 times the cost of the person doing the work. That would be nice in PT. The therapist would get...40% to 33.3%. That would include the ~14.5% for Social Security and Medicare. Plus whatever amount should be set aside for sick, vacation, holiday pay, continuing education, and any other benefits. ly, as an opinion, I'm not sure that signing a contract which is based on receipts is a sound strategy, since part of the " reduce national spending " plan is for payors to unilaterally drive salaries down ...by driving reimbursement down. Perhaps a wage floor which is at a parity level with RN wages might be reasonable, with incentives if receipts go above specified levels, or for other positive achievements. Dick Hillyer, MBA, MSM, PT (rwhpt@...) Hillyer Associates, Inc. Quote Link to comment Share on other sites More sharing options...
Guest guest Posted January 24, 1999 Report Share Posted January 24, 1999 In a message dated 1/22/99 11:36:55 PM Eastern Standard Time, rwhpt@... writes: > Consultant firms would like to receive 2.5 to 3.0 times the cost of the > person doing the work. That would be nice in PT. The therapist would get... > 40% to 33.3%. That would include the ~14.5% for Social Security and Medicare. > Plus whatever amount should be set aside for sick, vacation, holiday pay, > continuing education, and any other benefits. Could you explain this further? I'm afraid I don't understand...sorry... (I am a staff PT, trying to keep up on the issues facing our feild) > ly, as an opinion, I'm not sure that signing a contract which is > based on receipts is a sound strategy, since part of the " reduce national > spending " plan is for payors to unilaterally drive salaries down ...by > driving reimbursement down. > Perhaps a wage floor which is at a parity level with RN wages might be > reasonable, with incentives if receipts go above specified levels, or for > other positive achievements. > Dick Hillyer, MBA, MSM, PT (rwhpt@...) > Hillyer Associates, Inc. Yes, I agree that solely based on reimbursement, a wage might become too low, or too variable. Besides looking at the bottom line for the department or facility, staff will want to be assured of a reasonable living..and recruitment will become an issue...or am I off base here? Just my 2 cents... ------------------------------------------------------------------------ Quote Link to comment Share on other sites More sharing options...
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