Comment by jancsika
7 hours ago
> There's an extreme selection bias there.
Maybe. Unfortunately, what digitaltrees wrote here is ambiguous. It could also be read as this:
Our caregivers serve low income families. Those caregivers, who are our employees, earn $12-18/hr which is above minimum wage. Our employees absolutely struggle. Our employees are the ones using food banks and housing assistance because many are one car repair away from homelessness.
digitaltrees: which interpretation is correct?
I think the latter interpretation is correct. As in digitaltrees runs a business that does not pay its employees a living wage, who then have to rely on food banks and housing assistance.
We don’t set the Medicaid reimbursement rate so we have no control over wages either. We work to be very disciplined about unit economics and fixed costs so as much money goes to caregivers as possible but if Medicaid pays $22hr you can’t pay $20 because you won’t cover the payroll taxes, workers compensation insurance, or required clinical and other admin expenses.