2021 Changes



As an organization, we pride ourselves on putting patients, as well as our employees, first. Our goal is to not only provide the best service to our patients, but also nurture a healthy, supportive environment for our staff. COVID put that to the test this past year.


On January 7, 2021, we announced sweeping changes to offset several massive challenges we faced in 2020. We are collectively living through the most harrowing crisis of our lifetime. For a company like ours whose mission is centered around caring for others, laying off employees and making pay and other cuts are incredibly difficult to confront, and it will be even harder for those who have to leave.


Pay

Wage caps

New ranges have been set and were based on the following factors to ensure that the impact to the majority would be as minimal as possible:

  • Discipline

  • Qualification

  • Geographic – for cost of living, as well as supply & demand

While historically our employees enjoy rates that are 15% over market rate (according to our 2020 analysis), we determined the caps based on OUR company averages - not the market averages.


Cuts

All will be impacted.


For more info

Contact your Regional Director and/or DOR. As the ADP transition continues, you'll see your new rates in Workforce Now by Jan 27.



Staffing

Terminating anyone's employment is the hardest job for any manager. We have delayed this option for as long as we could, always with the goal of trying to retain all employees.


Yet, keeping all employees was not an option this time. As a result, every department across our organization has been impacted by a combination of pay cuts, bonus eliminations, and double-digit layoffs. No one was insulated, and the reductions were felt companywide.



401k Matching Program

Effective February 1, 2021, we will no longer offer a matching program for our 401k benefit. Nonetheless, a 401k program will still be available, and we encourage employees to use this opportunity to save for the future.



Reasons

The 3 below factors forced us to institute changes to ensure we withstand these rate changes and remain a healthy, growing organization.


1. COVID-19

The human toll of this pandemic has been horrid. Our staff has gone above and beyond, helping residents and put themselves at risk.

Aside from the emotional and physical toll, there is the economic one. Our business had already been working with tight margins, and COVID-19 had an enormous toll on our finances, including:

  • Decreased census

  • Decreased Group & Concurrent therapy

  • Decreased ability for shared staffing

  • Unplanned cost of securing PPE

  • Added cost of implementing telehealth, as well as added labor cost to implement

  • No CARES funding

2. Skyrocketing healthcare costs

Added to this, we saw our healthcare costs for our employees increase 200%. We have been faced with incredible financial pressure.


3. Medicare cuts for 2021

On December 1, 2020, CMS announced a new bill that would cut therapy reimbursement for Part B 7-9% to start on January 1, 2021. Given what a horrible year we’ve had, the timing was shocking.


Thanks to the advocacy efforts of many of you and industry associations, the cuts were reduced, but we are still faced with 3.6% rate cuts for Part B, which commenced on January 1, 2021.


It's important for all our employees to know that any changes made to reimbursement that affect the skilled nursing facilities and the industry also affect us. As such, we must redefine our business model in response to those changes to remain viable.


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