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COTA Thoughts

Dwindling Salaries

Published November 20, 2007 12:23 PM by Tim Banish

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

posted by Tim Banish

3 comments

Tim,  I am a COTA with 30 years experience.  I have gone for periods of three to four years gone without a salary increase over the past 10 years... people don't know what to do with me because of my years of experienc.  I am currently at the end of my pay scale at my current job, so they gave me a bonus instead, of which almost half went for taxes!  Some bonus.  I have been noting that there has become a shortage of therapists in this area.  I am wondering if this will push the salaries upward as it has in the past.  What are your views on this?

Regins, Acute care - COTA December 11, 2007 12:28 PM
TN

Those salaries are very low I think for COTA's. Hopefully it's just the OH area because I have worked in IL,MO, and KY for no less than $25 per hour (oftentimes much more than that). Travel therapy is the best way to go. One could make up to $34 an hour travelling.

Shelly, SNF - COTA November 27, 2007 7:51 PM
Cape Girardeau MO

As a prior regional manager with a national contract agency, I have altered my name.

It is standard practice for companies to offer all levels of management (facility based up through VP) financial incentives to exceed revenue expectations.  Many formulas are based on % over target for % of one's annual salary.  It is a method they usually refer to as a way to 'reward' efficiency.

Unfortunately, it appears that these incentives become the motivating and guiding factor in management practice for many companies.  My philosophy of management was not congruent with this philosophy, so I left.  My guiding force was quality patient care, not to get a big bonus nor help my boss get a big bonus.

Although Medicare is lowering reimbursement, For Med. B, a unit of ADL will be $26.91/unit,  ther ex 25.07, neuro 26.23, ther activity 26.55.

So, if one was to take the span of salary you have identified, and just use the high end, of $18/hr plus 30% overhead to cover insurance, upper level management costs etc,  the hourly cost of that most expensive COTA is $23.40/hr.   Based upon the 2008 Medicare fee screen, even if a COTA only provided 15 min of patient care per hour for any of the above treatments, the employer would show a profit.  For those in contract therapy, many contracts recieve a cut or percentage of the fee screen, so to be more than fair - lets say it would take 2 units of treatment/hr to show a profit to agency and host facility (and this is at the high end salary range you have identified....)

When I hear about expectations of concurrent treatment required through the day, 600 minutes... the amount of profit on a weekly and monthly or annual basis for a number of contracts is huge!  The question then becomes, who are these managers?  what are their ethics? and how is it that people in the field will support this type of management by following requests to practice in a way they are deeming to be unethical and not appropriate for their patients?

There is only one agency I am aware of which had employees say 'no more' and they lost staff.  To this day, they continue to have a bad reputation and are unable to recruit therapists with good reputations in the community.

Likewise, I do believe it is wrong to hold an employer and blackmail for salary and rates that are far beyond the norm.

Truth of the matter is, ask the right questions when you interview, and stick to what you feel is right.  I took pride in making sure those facilities and therapists who were in my area had exceptional clinical programs and remained in the black.  I would never expect them to work at a level that I wouldnt do myself.

Dee, Geriatrics - OT November 25, 2007 12:40 PM
Anytown IA

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