“CHCA is faced with outside constraints on how much it can pay its workers,” Casino writes. “Unlike most industries, prices for home care service are effectively set by the government. Through Medicaid, Medicare and other programs, the government pays for 73% of billings in the $61 billion home care services industry.”
As worker-owners, those who take part in the company’s ownership program are entitled to payouts of the profits in the form of dividends. CHCA makes it fairly easy for workers to buy in to the company, starting with just $50. The company provides the employee with an interest-free loan of $950 to purchase CHCA stock, which is paid back at a rate of $3.50 per month. The share of the profits averages around $200 to $300 per year, Fast Company reported.
While the benefits of profit-sharing are not all that much, CHCA has actively been involved in getting higher wages for low-income workers. Its non-profit arm, the Paraprofessional Healthcare Institute, successfully lobbied, with other groups, to raise New York’s minimum wage. A new law in the state also guarantees home health workers $10 per hour.
The higher rate of pay has helped bring many of these workers above the poverty line, according to the article. It has also helped reduce turnover, which has an industry rate of about 40%. At CHCA, turnover is significantly lower, at 15%.