Because of their high salaries, contract physical therapists may find themselves unemployed under a managed care system that emphasizes reduced costs. As the shortage of PTs decreases, they will have to lower the cost of their services in order to stay competitive in the market. With contract services, the therapist works directly for a facility through a contract agency. The agency bills the facility and pays the therapist. Facilities use contractors for part-time coverage or when they cannot find a permanent therapist.
Therapists see many advantages to working as a contractor.
They are not as affected by hospital politics and can try out various locations and settings. Even including benefit packages, many therapists can make more money on a contract basis than on a full-time basis. Some contract agencies offer benefit packages to their therapists. The disadvantage to working as a contractor is the lack of stability and security. With large managed care organizations reducing the reimbursement rate and number of visits that patients can be seen for home health care, contract agencies are caught in the middle.