Salary vs Revenue Production

[Guest guest]

I am curious if there is an industry standard in PT at this point as to

how a PTs salary compares to Revenue Production for an outpatient

clinic (PT owned). I am attempting to hire my first full time staff PT

for my one year old PT clinic and trying to establish realistic and

objective expectations for salary range and revenues. Any thoughts

along these lines would be greatly appreciated.

I have looked up Salary Statistics on the US Dept of Labor and on the

APTA website. It is amazing how the salaries keep climbing at sharp

levels while reimbursement continues to be difficult.

Thank you

Brad Freemyer, PT

Roswell, GA (Metro Atlanta)

[Guest guest]

Brad-

How much revenue a therapist generates is so variable from setting to setting,

that a simple productivity ratio won't get you the answer you need or want. You

will simply need to do a break even analysis, including all the costs of the

additional therapist. Don't forget to add in benefit costs, additional hours by

ancillary personnel, marketing costs for introducing your new staff, additional

laundry usage, additional supplies, etc. Once you find the break-even point,

then you can decide if the required revenue to meet that point is feasible for

your setting, the therapist, and the typical type of patient. If you want to

find out how many units you will need to generate, divide your fixed costs by

your unit contribution margin. (Figure the unit contribution margin by

subtracting your variable cost per unit from your revenue per unit).

Kovacek's Administration book has a nice explanation and will walk you through

the process.

The decision to add another revenue generator to your business is never easy.

Good luck!

Gail Altekruse,PT

Manager of Rehab

Parkview Orthopaedic Hospital

Ft. Wayne, IN

-------------- Original message --------------

I am curious if there is an industry standard in PT at this point as to

how a PTs salary compares to Revenue Production for an outpatient

clinic (PT owned). I am attempting to hire my first full time staff PT

for my one year old PT clinic and trying to establish realistic and

objective expectations for salary range and revenues. Any thoughts

along these lines would be greatly appreciated.

I have looked up Salary Statistics on the US Dept of Labor and on the

APTA website. It is amazing how the salaries keep climbing at sharp

levels while reimbursement continues to be difficult.

Thank you

Brad Freemyer, PT

Roswell, GA (Metro Atlanta)

[Guest guest]

Brad,

Most businesses need an employee to generate 3 to 5 times their base pay to

be profitable.

My PT Benchmark studies have shown that the median revenue generated

(collections) per FTE PT is in the $200K range.

For more info about PT Benchmark point your browser to:

www.HCSconsulting.com <http://www.hcsconsulting.com/>

Chuck

R. Felder, PT, MBA

HCS Consulting, Inc.

1303 W 6th St, Ste 104

Corona, CA 92882

Mobile:

Fax:

Office Phone:

CFelder@...

<http://www.HCSconsulting.com> www.HCSconsulting.com

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From: PTManager [mailto:PTManager ] On Behalf

Of bradfreemyer

Sent: Thursday, November 06, 2008 7:32 AM

To: PTManager

Subject: Salary vs Revenue Production

I am curious if there is an industry standard in PT at this point as to

how a PTs salary compares to Revenue Production for an outpatient

clinic (PT owned). I am attempting to hire my first full time staff PT

for my one year old PT clinic and trying to establish realistic and

objective expectations for salary range and revenues. Any thoughts

along these lines would be greatly appreciated.

I have looked up Salary Statistics on the US Dept of Labor and on the

APTA website. It is amazing how the salaries keep climbing at sharp

levels while reimbursement continues to be difficult.

Thank you

Brad Freemyer, PT

Roswell, GA (Metro Atlanta)