What's The Difference? FTE Cost vs. Lighthouse Cost

When schools consider their options for providing therapy services, one of the most crucial factors is cost. Many administrators look at the base salary of an on-site full-time equivalent (FTE) therapist and assume it's the most cost-effective option. However, the true cost of an on-site FTE extends far beyond their annual salary. In this post, we'll break down the real costs associated with on-site therapists and compare them to teletherapy services.

Understanding the Full Cost of an On-Site FTE

Let's examine the various components that contribute to the total cost of employing an on-site therapist. We'll use national averages for a speech-language pathologist (SLP) or occupational therapist (OT) with 16 years of experience and a caseload of 40 students, each receiving 30 minutes of therapy per week.

Base Salary and Bonuses

• Average annual salary: $65,000
• Signing or retention bonus: $2,000

Benefits Package

• Typically 30-35% of salary: $20,100 (using the lower 30% estimate)

Additional Costs

• Mileage reimbursement (for travel between schools): $604.80
• Continuing education/professional development: $500
• Technical support: $1,567
• Recruiting, HR, onboarding, background checks, and license verification: $3,080

Total Annual Cost

When we add up all these expenses, the total cost for one on-site FTE therapist comes to $91,442.47 per year.

Comparing On-Site FTE to Teletherapy Services

Now, let's compare this to the cost of teletherapy services. Using Lighthouse Therapy as an example, with an estimated rate of $100 per hour for speech therapy services, the total annual cost comes to $89,019.72.

At first glance, the hourly rate for teletherapy might seem higher than an on-site therapist's salary. However, when you factor in all the additional costs associated with employing an on-site FTE, the total expenses are remarkably similar.

Key Considerations Beyond Cost

While cost is a significant factor, it's important to consider other aspects when choosing between on-site and teletherapy services:

1. Flexibility: Teletherapy services can often be scaled up or down more easily based on your school's needs.
2. Availability: In areas with therapist shortages, teletherapy can provide access to qualified professionals who might not be available locally.
3. Consistency: Teletherapy providers often have a network of therapists, which can help ensure continuity of services even if a specific therapist is unavailable.
4. Technology: While included in the teletherapy cost, schools may need to factor in additional technology expenses for on-site therapists if not already budgeted.

Making the Right Choice for Your School

When deciding between on-site FTEs and teletherapy services, it's crucial to look beyond the base salary or hourly rate. Consider the full financial picture, including hidden costs like benefits, training, and administrative expenses.

Keep in mind that these figures are based on national averages, and your specific costs may vary depending on your location, the therapist's experience level, and other factors. It's always advisable to do your own research and calculations based on your school's unique situation.

Ultimately, the best choice will depend on your school's specific needs, budget, and circumstances. By understanding the true costs associated with both options, you can make an informed decision that best serves your students and your bottom line.

For more information on teletherapy services and how they can benefit your school, feel free to explore our resource library at www.lighthouse-therapy.com or reach out to us with any questions at (888) 642-0994 x400.