Financial Planning & Analysis
Managerial Accounting
A physical therapy practice came to me feeling squeezed and convinced the answer was volume — more patients, more sessions, work harder. What the math said was that the practice needed about 255 sessions a month to cover everything including the owners' pay, that a realistically full schedule topped out around 271, and that two-thirds of the revenue ran through a therapy pool that capped at 46 usable sessions a week no matter what anybody did. There was no room. Working harder wasn't a plan, it was the ceiling with a different name.
That changed the question from how do we do more to where does more even come from, and every answer worth having — in-home visits, two payer contracts collecting $7 to $9 per unit below the others, about $6,000 in aged claims nobody had chased — came off the same page of arithmetic.
You have a decision in front of you and the books won’t answer it
The questions this work answers
What do I have to make in a month to cover everything, including paying myself properly.
Can I afford to hire, and if not now, at what number.
Am I charging enough, and which of my prices are quietly paying for the others.
Where is my ceiling, and what is it made of — hours, equipment, space, me.
Should I take this loan, and what has to be true for the payment to be survivable.
I got one of these from an owner whose AI had told him his payroll was too high. It wasn't. His payroll is a revenue driver in a business that sells cutting-edge work at the same price as routine work, and the answer was service tiers, not a smaller team. His books were fine. Nothing in them would have told you that.
What it Costs
$2,000 a month for three to four months