2013
SALARY
SURVEY
A Division of VGM Group, Inc.
Focused on Our Members’ Success
www.usrehab.com
“
2013
Give me six hours to chop down a tree and I
will spend the first four sharpening the axe.
SALARY SURVEY
”
~ Abraham Lincoln
U.S. Rehab
Salary Survey
Table of Contents
Introduction
Page 2 - 3
Respondents’ Backgrounds
Page 4
Competitive Bid Areas
Page 5
Revenues and Mix
Page 6
What Our Respondents
Said About Their 2012
Revenue Growth
Page 7
Personnel Overview
Page 8 - 9
Benefits
Page 10 - 11
Sales Incentives and
Commissions
Page 12 - 13
Dear Valued U.S. Rehab Members:
I am very pleased to present to you as a member of U.S. Rehab, the
fifth salary survey. Every other year for the past 10 years, U.S. Rehab
has done a salary survey. U.S. Rehab is here to help provide the tools
that will systematically help you develop your path to the future. This
financial data allows you to see into the window of the industry and
gives your business key benchmarks to compare yourself with peers.
At U.S. Rehab, we understand that operating a rehab-based medical
equipment company takes a unique set of tools and people. For that
reason, we created this survey with you, the rehab member, in mind.
Our goal is to present market-based information in a format that
empowers you to make sound business decisions and drive change
when appropriate. Through the years, use the benchmarking report to
track your performance annually. This will give you perspective about
where you stand individually and compared to your peers.
U.S. Rehab and VGM offer many programs to help members achieve
success. As you review and complete the benchmarking for your
company, you may have questions, desire additional resources or need
to talk with someone. We stand ready to assist you.
Again, I would like to thank all of those who participated in this survey.
We understand that your time is very valuable and we do appreciate it.
Please utilize this information and give us a call if you have questions.
Pay by Position
Page 14 - 16
Industry Challenges
Page 17
U.S. Rehab Exclusive
Vendors and Support
Services
Page 18 - 20
Greg A. Packer
Vice President
U.S. Rehab
2
Focused on Our Members’ Success
Focused on Our Members’ Success
“
2013
There are no rules here, we’re trying to
accomplish something.
”
SALARY SURVEY
~ Thomas Edison
As you read this survey, our industry is in the middle of a momentous
period of change. The broader health care sector is undergoing
creative destruction in an effort to stem costs and accommodate an
aging population’s health care needs. Standing still can be deadly in
times like this. We live with and by the rules put upon us by payers.
But when it comes to running our businesses, it’s reinvention we
need. Casting aside some of the old rules and building a sustainable,
profitable business is our pathway to survival and success.
Understanding your numbers is a necessity in running your business.
Understanding where your numbers fit within a context of similar
businesses is helpful in evaluating your operation. We surveyed
dozens of businesses like yours and have presented the aggregated
data in a way that allows you to see how others are doing, the
decisions they have made in areas like personnel compensation and
financial results, the trendlines. Data like this provides important
benchmarking that we hope will help you as you build your financial
plan for the coming years.
Our survey uses data that is necessarily from the past, but the survey
is all about the future. Like everything that we do here at U.S. Rehab,
it’s about your business and helping you succeed, in this case by
giving you important information you need in making compensation
decisions for your business. I hope you find our 2013 Salary Survey to
be a useful tool.
As always, if we can be of any help, please don’t hesitate to let us know.
Mike Mallaro
Chief Financial Officer
VGM Group, Inc.
3
www.usrehab.com
2013
Respondents’ Backgrounds
SALARY SURVEY
9%
Ownership structure
14%
Hospital-based
Owner is absentee
Owner is operator
77%
Employee classification
Full time more than 32 hours weekly
Part time less than 32 hours weekly
98%
Full-time employees
Part-time employees
2%
0
80%
70
60
50
40
30
20
10
0
20
40
Annual revenue
65%
30%
5%
$5 million or less
$5 million to
$15 million
4
Focused on Our Members’ Success
$15 million or more
60
80
100%
Competitive Bid Areas
2013
Round 1
Charlotte, NC
Cincinnati, OH
Cleveland, OH
Dallas, TX
Fort Worth, TX
Kansas City, MO
Kansas City, KS
Miami, FL
Orlando, FL
Pittsburgh, PA
Riverside, CA
SALARY SURVEY
Located in competitive bid area?
9%
9%
Round 2
Bridgeport, CT
Hartford, CT
New Haven, CT
Washington, DC, VA, MD, WV
Boston, MA, NH
Springfield, MA
Worcester, MA
Baltimore, MD
Albany, NY
Buffalo, NY
New York, NY, NJ, PA
Poughkeepsie, NY
Rochester, NY
Syracuse, NY
Allentown, PA, NJ
Philadelphia, PA, NJ, DE, MD
Scranton, PA
Providence, RI, MA
Birmingham, AL
Little Rock, AR
Bradenton, FL
Cape Coral, FL
Deltona, FL
Jacksonville, FL
Lakeland, FL
Ocala, FL
Palm Bay, FL
Tampa, FL
Atlanta, GA
Augusta, GA, SC
Louisville/Jefferson County, KY, IN
Baton Rouge, LA
New Orleans, LA
Jackson, MS
Asheville, NC
Greensboro, NC
Raleigh, NC
Oklahoma City, OK
Tulsa, OK
Charleston, SC
Columbia, SC
Greenville, SC
Chattanooga, TN, GA
Knoxville, TN
Memphis, TN, MS, AR
Nashville, TN
Austin, TX
Beaumont, TX
El Paso, TX
Houston, TX
McAllen, TX
San Antonio, TX
Richmond, VA
Virginia Beach, VA, NC
Chicago, IL, IN, WI
Indianapolis, IN
Wichita, KS
Detroit, MI
Flint, MI
Grand Rapids, MI
Minneapolis, MN, WI
St. Louis, MO, IL
Omaha, NE, IA
Akron, OH
Columbus, OH
Dayton, OH
Toledo, OH
Youngstown, OH, PA
Milwaukee, WI
Huntington, WV, KY, OH
Phoenix, AZ
Tucson, AZ
Bakersfield, CA
Fresno, CA
Los Angeles, CA
Oxnard, CA
Sacramento, CA
San Diego, CA
San Francisco, CA
San Jose, CA
Stockton, CA
Visalia, CA
Colorado Springs, CO
Denver, CO
Honolulu, HI
Boise City, ID
Albuquerque, NM
Las Vegas, NV
Portland, OR, WA
Salt Lake City, UT
Seattle, WA
39%
39%
52%
52%
Round 1
Round 1
Round 2
Round 2
Not in a Competitive Bid area
Not in a Competitive Bid area
6% of the group were in both a
Round 1 and a Round 2 area.
If in Round 1, are you
subcontracting with a winner?
7%
No
Yes
93%
If in Round 1,
were you a winning bidder?
15%
No
Yes
85%
5
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2013
Revenues and Mix
SALARY SURVEY
5%
7%
10%
Mix of Revenue
Standard Rehab
Complex Rehab
DME
Respiratory
Home Mod
Other
14%
42%
22%
Alternative businesses
18%
Pain Management
15%
Doing it now
Considering doing it
Diabetic Shoes
25%
Home Mods
14%
31%
23%
Lifts & Ramps
75%
Wound Care
38%
0
20
16%
16%
40
60
80
100%
Other areas being considered by more
than one respondent include:
• women’s health
• compression
• van conversion
6
Focused on Our Members’ Success
What Our Respondents Said About Their
2012 Revenue Growth
2013
SALARY SURVEY
Which best describes your net revenues in 2012
as compared to 2011?
50%
40
41%
30
25%
20
10
0
22%
12%
Decreased
by more
than 5%
+/- 5%
Increased
by 6%-12%
Increased
by 13%
or more
Which best describes your complex rehab net
revenues in 2012 compared to 2011?
60%
50
51%
40
30
20
10
0
18%
15%
Decreased
by more
than 5%
+/- 5%
Increased
by 6%-12%
16%
Increased
by 12%
or more
7
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2013
Personnel Overview
SALARY SURVEY
Headcount in a rehab dealer
(How it breaks down)
Management and Operations
11%
Sales and Marketing
9%
Billing and Reimbursement
15%
Clinical Rehab, Credentialed
8%
Clinical Rehab, Not Credentialed
7%
Clinical, Other than Rehab
10%
CSR
4%
Rehab Tech
19%
ATP/SMS
7%
Other
10%
0
5
10
15
20%
What percentage of companies employ rehab professionals?
97%
Rehab Tech: Employed
87%
Rehab Tech: Non-credentialed
98%
ATP Certified
SMS Certified
27%
0
20
40
60
80
100%
Percent of providers in survey that employ these professionals.
8
Focused on Our Members’ Success
2013
Personnel Cost Overview
SALARY SURVEY
Salaries, wages and bonuses as a percent of payroll
U.S. Rehab Survey Median
29%
U.S. Rehab- 25th Percentile
35%
25%
U.S. Rehab- 75th Percentile
0
5
10
15
20
25
30
35%
Total personnel cost as a percent of revenue
U.S. Rehab Survey Median
34%
National DME - L
29.5%
National DME - A
31%
National DME - H
36%
0
5
10
15
20
25
30
35
40%
9
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2013
Benefits
SALARY SURVEY
Employer vs. Employee
Financing Median Response
Benefit Offered to Employees
94%
Health Insurance - Family
65%
40%
95%
??
40%
60%
Long-term Disability
25%
Short-term Disability
25%
74%
Vacation, Sick or PTO Time
60%
13%
75%
100%
Half of companies match,
normal is 3% of compensation.
401(k)
Other Retirement Plan
30%
0%
65%
Half of companies pay some or
all of the cost of dental. ??
Life Insurance
43%
40%
35%
Dental Insurance
55%
??
60%
Health Insurance - Employee
86%
20%
40%
60%
80%
100%
0%
20%
40%
60%
34%
80%
100%
Average Split Between
Employer and Employee
Benefit Cost as a Percent of Payroll
% Employer Paid or Shared Cost
% Paid by Employee
Median
18%
0
5
10
15
More on Health Insurance...
• High deductible plans are becoming the
norm. ($1,500-$3,000)
• Increasing the annual deductible is very
common.
• Annual out-of-pocket maximum norm is
approximately $4,000.
10
• Most drug cards are three tier and a
$10/$25/$50 co-pay is normal.
Focused on Our Members’ Success
20%
• 22 percent of employers offer a health
savings account option.
• Of those offering health savings
accounts, 25% of people take
advantage of them.
•Average total annual cost of traditional
health insurance coverage for
individuals is $5,050.
•Average total annual cost of traditional
health insurance coverage for families
is $15,100.
2013
Benefits
SALARY SURVEY
How are your companyowned vehicles used?
Do you pay holiday or year
end bonuses?
39%
62%
Yes
25%
Sales People
ATP
Yes
No
No
61%
55%
75%
Pay by Position
Sales
Salesperson
Marketing Specialist
$34,000
Lower End
Retail Store Staff
$45,000
$56,000
Higher End
$40,000
Lower End
$41,500
$45,000
Higher End
Sales Manager
Median
$53,000
Lower End
$60,500
$68,000
Higher End
$30,000
Lower End
$32,000
$35,000
Higher End
$20,000
30,000
40,000
50,000
60,000
$70,000
11
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2013
Sales Incentives and Commissions
SALARY SURVEY
How often are
commissions/incentives paid?
Is commission percentage based
primarily on sales dollars?
11% 11%
44%44%
56%
11%
YesYes
No
No
56%
Annually
Annually
Quarterly
Quarterly
Monthly
Monthly
Biweekly
Biweekly
11%
11%
11%
67%
67%
Do incentive plans reward staff
for pushing a particular brand?
Is there a gross margin requirement
to earn commissions?
23% 23%
15% 15%
YesYes
No
No
Yes
Yes
No
No
85%
85%
77%
Do you pay commission to any of
the following?
Credentialed ATP
and SMS Staff
77%
How much do your sales people
earn in variable compensation?
45%
Average
24%
40%
Sales and Marketing
Managerial Staff
Top
13%
0
10
20
30
40
50%
40%
0
10
20
Top performers earn 40% of compensation by incentives.
Average performers earn 25% of compensation by incentives.
12
Focused on Our Members’ Success
30
40%
2013
Sales Incentives and Commissions
SALARY SURVEY
Which of the following are factors in the
computation of sales commissions?
Sales Dollars
Normal
Commission Rate
45%
Gross Margin Dollars
3-5%
39%
Unit-based Measurement
5-25%
10%
Net Profitibility on Sales Made
N/A
30-50%
6%
0
10
20
Are computations based on
individual or group performance?
30
40
50%
Do you have a formal incentive
plan for the entire staff?
23% 23%
57%
43%
YesYes
No
No
Individual
Group
77%
Do you have a formal incentive
plan for management/executives?
77%
Average performance 4%
High performance 8%
If so, what is it based on?
30%
28%
25
22%22%
20
Yes
Yes
No
No
78%
15
16%
10
78%
Average performers earn 7% of compensation as incentives.
High performers earn 14% of compensation as incentives.
22%
11%
5
0
6%
Sales
Sales
Dollars Growth
Plan
Units
Sold
11%
6%
Net
Profit
Net Profit Qualitative Qualitative
vs
Factors
Factors
Goal
Quantified
Non
Quantified
13
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2013
Pay by Position
SALARY SURVEY
Clinical and Technical
Rehab Specialist,
Not Credentialed
Rehab Specialist,
Credentialed- ATP
Rehab Specialist,
Credentialed- SMS
Delivery Driver
Warehouse
Coordinator
Equipment
Repair Tech
Equipment
Cleaning Tech
$31,000
Lower End
$34,500
$38,000
Higher End
$50,000
Lower End
$63,050
$76,000
Higher End
$55,000
Lower End
$85,000
Higher End
$26,000
Lower End
$32,000
Lower End
$34,000
$35,000
Higher End
$31,000
Lower End
$33,500
$36,000
Higher End
$20,000
$22,000
$25,000
Higher End
$20,000
30,000
$70,000
$29,500
$33,000
Higher End
Lower End
Median
40,000
50,000
60,000
$70,000
Two-thirds of respondents use incentive pay to
compensate their ATPs. The median ATP earns 30
percent of his pay from incentives/commissions.
14
Focused on Our Members’ Success
$80,000
2013
Pay by Position
SALARY SURVEY
Management and Office
Median
Lower End
Clerical Support
Branch Manager
$24,000
$41,000
Lower End
President/CEO
$48,000
$55,000
Higher End
Operations
Manager
$29,500
$35,000
Higher End
$53,000
Lower End
$63,500
$74,000
Higher End
$89,000
Lower End
$125,000
Higher End
$20,000
40,000
60,000
80,000
100,000
$100,000
$120,000 $140,000
The survey indicated more than 60 percent of CEO/
presidents were compensated using incentives. For those
that were, the norm was that 25 percent of their pay was
incentive-based.
15
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2013
Pay by Position
SALARY SURVEY
Billing and Reimbursement
Median
Billing Staff
$27,000
Lower End
CMN/Rx Representative
$29,000
Lower End
Billing and Reimbursement
Manager
$31,500
$34,000
Higher End
Collection Staff
$29,500
$32,000
Higher End
$23,000
Lower End
$25,500
$27,000
Higher End
$41,000
Lower End
$46,000
Higher End
$15,000 20,000
25,000
30,000
35,000
40,000
45,000 $50,000
Our survey found it was uncommon to use incentive pay
for billing, collection staff or managers.
16
Focused on Our Members’ Success
$43,500
2013
Industry Challenges
SALARY SURVEY
Most Layoff/Downsized Positions:
Biggest Compensation Concerns:
•Repair Mechanic
•DME Sales Rep
•Respiratory Therapist
•Driver/Tech
•Delivery Driver
•Marketing Director
•Tech Office Staff/CSR
• Health insurance cost increases
• Losing employees to higher-paying jobs
• Salary equity
• Inability to provide raises and bonuses
• Keeping the good people
During the past 12 months, have you made any
changes in response to industry challenges?
30%
25
27%
20
Freeze Wages
Reduce Individual Wages
15
10
5
Layoff/Downsize Workforce
15%
12%
Reduce Employee Benefits
12%
8%
Reduce Bonuses and Commissions
0
Notes:
17
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2013
U.S. Rehab Exclusive Vendors
SALARY SURVEY
AbleNet®, Inc
800-322-0956
www.ablenetinc.com
Specializes in educational
and assistive technology
solutions to help children and
adults with disabilities lead
productive and fulfilled lives.
Bodypoint®
800-547-5716
www.bodypoint.com
Specializes in wheelchair
seating and positioning aids.
Comfort Company
800-564-9248
www.comfortcompany.com
Specializes in seating and
positioning products
for geriatric and
rehabilitation clients.
Conduit Technology (LMN BuilderTM)
[email protected]
www.conduittechnology.com
Conduit Office is a web
based software tool that
reduces the time and cost of
collecting documentation.
Harmar
800-833-0478
www.harmar.com
Specializes in
patient lifts, vehicle
lifts, stair lifts,
vertical platform
lifts, incline platform
lifts, cargo lifts, bath
lifts and ramps.
Innovative Concepts
800-676-5030
www.icrehab.com
Specializes in adaptive
seating products and services.
Motion Concepts
888-433-6818
www.motionconcepts.com
Specializes in wheelchair tilt
and recline systems.
Innovation In Motion
800-327-0681
www.mobility-usa.com
Specializes in power
wheelchairs and
Ormesa pediatric products.
Permobil
800-736-0925
www.permobil.com
Specializes in high-end
power mobility.
Invacare
800-333-6900
www.invacare.com
Specializes in home and
long-term care products.
Ki Mobility
715-254-0991
www.kimobility.com
Ki Mobility is dedicated to
developing innovative seating
and mobility products that
provide optimal performance
for the rider.
Liko
888-545-6671
www.liko.com
Specializes in advanced,
professional grade patient
lifting and transfer systems.
MK Battery
800-372-9253
www.mkbattery.com
Specializes in batteries for
HME mobility; one of the
largest sealed lead acid
battery providers in North
America.
18
Focused on Our Members’ Success
PDG: Product Design Group
888-858-4422
www.pdgmobility.com
Specializes in providing
better mobility products for
people with extra special
needs.
PRM: Precision Rehab
Manufacturing Inc.
814-725-8731
www.prmrehab.com
Specializes in custom seat
and back cushions.
Prism Medical
866-891-6502
www.prismmedicalltd.com
Prism Medical Ltd. has
been at the forefront of
patient ceiling lift and floor
lift installations, including
various moving and handling
products.
RAZ Designs Inc.
877-720-5678
www.razdesigninc.com
Specializes in rehab
commode shower chairs.
2013
U.S. Rehab has partnerships with top rehab vendors for quality
products, services and preferred pricing.
Richardson Products
888-928-7297
www.richardsonproducts.com
Specializes in seating and positioning.
Rifton Equipment®
800-571-8198
www.rifton.com
Find top quality, durable adaptive equipment and
buy direct from Rifton Equipment. Products for life
from people who care.
The ROHO Group
800-851-3449
www.therohogroup.com
Specializes in DRY FLOATATION®, from wheelchair
cushions to a full line of shape-fitting products.
SALARY SURVEY
The Aftermarket Group
888-824-8200
www.aftermarketgroup.com
We provide discount, high quality replacement parts
for home medical equipment-adjustable hospital
bed, wheelchair parts and liquid oxygen parts.
Therafin
800-843-7234
www.therafin.com
Manufacturer of innovative, quality cost-effective
custom WC20 seating for transit, positioning
products and other wheelchair-related products.
U.S. Rehab Support Services
• Managed care contracts
®
HOMELINK
www.vgmhomelink.com • 800-482-1993
• Equipment leasing and innovative financing
VGM Financial Services
www.vgmfs.com • 800-532-7392
• Website development
VGM Forbin
www.forbin.com • 877-814-7485
• Training and Development
VGM Education
www.vgmu.com • 866-227-8171
• Telecommunications and software consulting
VGM Technologies
www.vgmt.com • 800-824-8468
• Your HME Alliance
VGM & Associates
www.vgm.com • 800-642-6065
• Product liability and other insurance coverage
VGM Insurance
www.vgminsurance.com • 800-362-3363
• Advocating for the industry
Government Relations
www.vgm.com • 800-642-6065
• Providing solutions for independent living
AHIA
www.accesshomeamerica.com • 877-404-2442
• Affordable Marketing Solutions
Off The Shelf Marketing
www.vgmt-ots.com • 800-642-6065
19
www.usrehab.com
Mike Mallaro
Chief Financial Officer
Greg Packer
Vice President
John Gallagher
Legislative Issues
Erika Havlik
Marketing Coordinator
Elizabeth Cole
Director of Clinical
Rehab Services
Jim Philips
COO
Peggy Walker
Billing & Reimbursement
Adviser
Ron Bendell
President
Jenn Alpers
Customer Services
Jay Kopriva
Customer Services
Ronda Buhrmester
Reimbursement Specialist
A Division of VGM Group, Inc.
Focused on Our Members’ Success
www.usrehab.com
800.987.7342
Mark Higley
Industry Resources