Last year, one of the industry's leading for-profit companies, Home Instead Senior Care, spent at least $362,0000 fighting the Labor Department's proposal, even as it yielded an 18.8 ratio of investment to revenue, USA Today reported. The industry has increased in profitability -- and employment -- since 2006, even as so many other industries shed employees and businesses declared bankruptcy.
According to MSNBC, privately-owned home health care companies saw a revenue increase of 12.8 percent over the last two years and net profit margins of about 8 percent, while their public counterparts saw revenues rise by 2.5 percent over the same time period, and saw net profit margins of 4 percent.
There are currently around 1.7 million home care workers, according to the National Employment Law Project, a low-wage workers advocacy group. In 2009, those who worked 40 hours per week in the industry earned a little over $20,000 a year -- below the federal poverty line for a family of four.Read it at The Huffington Post
Minimum Wage Battle Moves In On Home Health Care
by Lila Shapiro
Government assistance for the working poor subsidize firms that pay a wage that is below the poverty line.