Are therapists paid well?
I realize reimbursement from payers varies depending on a number of factors (setting, state/region, etc.) and that the figures/situation at my hospital are not exactly applicable everywhere. However, Im presenting this as food for thought.
Lets first look at the stereotypical new therapist:
1) Young professional, 25-27 years old.
2) Has previously had no means of true income.
3) Just finished 6-8 years of college (depending undergrad, joint undergrad/PT schooling, MPT/DPT education, etc) and has debt in student loans ranging from $100,000-200,000+ that they have to start paying now.
Anyone who has been in this position (young, in debt, never paid) knows that this is more or less a cocktail of desperation to find employment as soon as possible.
Lets say a new graduate is, based on their experience, offered a wage (salary) equal to $28.85/hr ($60,000/year).
[They may be urged by their school to pursue a residency for one of the clinical practice specialties (e.g. OCS, SCS, GCS, etc). My PT school offered it conjoined with the last clinical -- after the typical final clinical length the student would take the boards, stay on for a year treating under the supervision of the senior PTs while earning ½ entry level pay, and at the end they would take the specialist exam. For this scenario cut the example down to $14.43/hr (~$30,000/year)]
Regardless, for the reasons listed above, the new grad more or less jumps on the offered wage/salary. And if the value of benefits are added in, lets say another $5/hr, the therapist is earning at $33.85/hr (~70,000k). Thats a lot of money for someone who has never had a stable income.
Now lets look at reimbursement for the care they will provide. Again, I said numbers will vary these are just what they are at my setting.
Medicaid aside the average reimbursement rate per unit (13-15 minutes) of intervention (therapeutic exercise, neuromuscular re-education, manual therapy, therapeutic exercise, etc) is $27. Examinations at (30ish minutes) reimburse at $75.
The work year has 260 days, 2,080 hours, and 8,320 possible units at maximum productivity (4units/hr).
Lets say the therapist averages ~2 examinations a day (500/year). That = $75 * 500 = $37,500. With 1,830 hours or 7,320 possible unites remaining for treatment = 7320 * $27 = $197,640.
Therapists yearly worth = $197,640 + $37,500 = $235,140
Now delve a bit into that gray area of units and double/triple booking. Well keep it at double for simplicitys sake. If double booked with Medicare patients always use Group TherEx and stick to 4unit/hr. If they arent Medicare patients then 6-8 units/hr is, and I quote two rehabilitation directors, Expected.
Again using the above 500 examinations/year guideline one is left with 1,830 hours but at 6 units/hr treatments = $296,460, at 8 units/hr treatments = $395,280
So therapists worth = $113.05/hr ($235,140/year) $208.07/hour ($432,780/year)
When we go back to the entry-level therapist making $33.85/hr (~70,000/year) its rather clear that a significant discrepancy exists. And Im sure this discrepancy is prevalent for professionals across the spectrum in health care.
So are therapists paid well? Sure, its not a bad living. Is it commensurate with the level of education and/or reimbursement for the care rendered? Not really. Could they be paid better? Absolutely.
New therapists / future new therapist do not eagerly accept that initial offer, always negotiate for more. Keep in mind that youre experience has no bearing on the reimbursement for the care you provide. Look into traveling, locum therapist make nearly double, and there is a shortage of therapists -- my hospital has been short two PTs for a year. And private practice is an option once youve got the savings to open one.
Finally, consider this board, consider the number of people shying from a career in PT because it doesnt appear worth it in terms of costs to benefits. Fewer people are willing to put forth the effort to become therapist while the baby boomers, the largest population in the US, are just now entering an age when theyll need a physical therapist the most. Supply and demand determines worth, thats a maxim of economics.