Dwindling Salaries
So far my thoughts have rambled on with topics such as productivity, ethics, and job security. With this post, let's head into some thoughts regarding the current salary ranges of COTAs.
Referring back to the forum I mentioned previously, I see where at least one COTA had reported they were offered $12 per hour for a position in a SNF. Granted, this was an offer to a new grad, but I know of a few fast food restaurants where a person could make this kind of money.
Since 1998, when Congress amended the Medicare regulations which took 16 billion dollars out of the fund, salaries have decreased dramatically. One company, in response to this action, cut their employees salary by 50%. Most other companies cut salaries too, or else closed their doors. This led to quite a few OTs leaving the profession. This also caused an overabundance of OTs changing/seeking jobs. As many companies cut staff and therapy in SNFs declined for the time being, there were only a few jobs to be found.
It took a couple of years for many companies to find a successful formula for providing contract therapy and still make a profit. This is what led to the current productivity guidelines. Yet each company developed their own guideline, using the Medicare regulations for guidance. The only problem with this scenario is that everyone reads between the lines differently. If you've ever spent some time reading these guidelines, you may know that the language used is very confusing.
The fallout for all of this is that all therapists' salaries have been reduced to enable big profits for the SNF, the corporation, and the stockholders. Again, I know that a company has to stay profitable to remain open, but I see other things going on too. One senior manager of a company I worked for offhandedly told us she had received a huge year end bonus. This figure was way more than my entire yearly salary. WHY? Another supervisor reported having their son's playhouse lowered into their new yard via a crane. What did this cost? Probably more than I make in a year. Yet at the same time, staff was told that our productivity was down and all raises were now "on hold".
Now I'm not trying to give all the big therapy contract companies a bad reputation here. I'm only stating some facts that may influence our salary rates. Without these companies most of us would be out of work, but....
Back to the discussion of salaries. COTAs can currently expect a pay range of $12-18 per hour. Depending on the setting and years of experience, some COTAs will make more. However, job security and working a full 40 hour week may not be guaranteed. You may want to factor in other costs that take a bite out of your salary too. Medical benefits, travel, continuing education, even office supplies can reduce your actual take home pay if they are not covered appropriately by your employer.
Given the current price of schooling, will this salary be enough to justify the cost? If salaries continue to decrease and inflation continues to rise, my guess is that more and more people will decide on a different career. This unfortunately comes at a time when the baby boomer generation is beginning to fill the nursing homes.
Till next time, hope all your thoughts are good,
Tim