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Methodology

Allied Health Session Pricing Planner methodology

Set an average session fee that protects practitioner time, non-billable work and entered practice costs under the expected attendance mix. Price an allied-health session mix from scheduled volume, duration, cancellations, recovered cancellation fees, practitioner capacity and delivery costs.

Educational only: Business decision support, not accounting, tax or legal advice.

Privacy: Calculations run locally; Margin101 does not receive your commercial inputs.

Update policy: Reviewed when formulas or official dependencies change.

Scope: Market-neutral small-business planning using your own assumptions.

1. Formulas and units

Scheduled sessions
scheduledSessions = sum(session-type scheduled sessions)

Where

scheduledSessions
Scheduled sessions (units)Source: Calculated output
Expected completed sessions
expectedCompletedSessions = sum(scheduled sessions * (1 - cancellation rate))

Where

scheduledSessions
Scheduled sessions (units)Source: Calculated output
expectedCompletedSessions
Expected completed sessions (units)Source: Calculated output
Expected session revenue
expectedRevenueExTax = completed fees + recovered cancellation fees

Where

expectedRevenueExTax
Expected session revenue (currency units, ex tax)Source: Calculated output
Practitioner cost
practitionerCostExTax = (scheduled clinical hours + non-billable hours) * loaded practitioner cost

Where

practitionerNonBillableHours
Practitioner non-billable hours (hours/review period)Source: Business record
practitionerCostExTax
Practitioner cost (currency units, ex tax)Source: Calculated output
totalCostExTax
Total session cost (currency units, ex tax)Source: Calculated output
Room and administration cost
roomAdminCostExTax = sum(scheduled sessions * room/admin cost)

Where

scheduledSessions
Scheduled sessions (units)Source: Calculated output
roomAdminCostExTax
Room and administration cost (currency units, ex tax)Source: Calculated output
totalCostExTax
Total session cost (currency units, ex tax)Source: Calculated output
Consumables cost
consumablesCostExTax = sum(completed sessions * consumables cost)

Where

consumablesCostExTax
Consumables cost (currency units, ex tax)Source: Calculated output
totalCostExTax
Total session cost (currency units, ex tax)Source: Calculated output
Total session cost
totalCostExTax = practitioner + room/admin + consumables + fixed cost

Where

practitionerCostExTax
Practitioner cost (currency units, ex tax)Source: Calculated output
roomAdminCostExTax
Room and administration cost (currency units, ex tax)Source: Calculated output
consumablesCostExTax
Consumables cost (currency units, ex tax)Source: Calculated output
totalCostExTax
Total session cost (currency units, ex tax)Source: Calculated output
Practitioner capacity used
capacityUtilisationRate = (scheduled clinical hours + non-billable hours) / available hours

Where

capacityUtilisationRate
Practitioner capacity used (decimal rate)Source: Calculated output
Session-mix contribution
contributionExTax = expected revenue - total cost

Where

expectedRevenueExTax
Expected session revenue (currency units, ex tax)Source: Calculated output
totalCostExTax
Total session cost (currency units, ex tax)Source: Calculated output
contributionExTax
Session-mix contribution (currency units, ex tax)Source: Calculated output
Session-mix margin
contributionMargin = contribution / expected revenue

Where

expectedRevenueExTax
Expected session revenue (currency units, ex tax)Source: Calculated output
contributionExTax
Session-mix contribution (currency units, ex tax)Source: Calculated output
contributionMargin
Session-mix margin (decimal rate)Source: Calculated output
Required average session fee
requiredAverageSessionFeeExTax = total cost / (1 - target margin) / expected paid fee units

Where

targetMargin
Target session margin (decimal fraction of session revenue)Source: Business record
totalCostExTax
Total session cost (currency units, ex tax)Source: Calculated output
requiredAverageSessionFeeExTax
Required average session fee (currency units, ex tax)Source: Calculated output

Money inputs and outputs use the currency selected in the scenario without changing the canonical methodology. Rates, margins, utilisation and buffers are entered as percentages and converted to decimal values for calculation.

2. Worked example

Input assumptions

The worked rows below are evaluated at render time by the same shared engine and visible default fixture as the interactive workflow.

Standard sessions scheduled
30 whole scheduled sessions/review period
Standard session duration
60 minutes/standard session
Standard session fee
150 currency units/standard session, ex tax
Standard cancellation rate
0.1 decimal fraction of scheduled standard sessions cancelled
Standard cancellation fee recovery
0.5 decimal fraction of cancelled standard-session fees recovered
Standard room and admin cost
10 currency units/scheduled standard session, ex tax
Standard session consumables
5 currency units/completed standard session, ex tax
Extended sessions scheduled
8 whole scheduled sessions/review period
Extended session duration
90 minutes/extended session
Extended session fee
220 currency units/extended session, ex tax
Extended cancellation rate
0.08 decimal fraction of scheduled extended sessions cancelled
Extended cancellation fee recovery
0.5 decimal fraction of cancelled extended-session fees recovered
Extended room and admin cost
14 currency units/scheduled extended session, ex tax
Extended session consumables
7 currency units/completed extended session, ex tax
Practitioner available hours
50 hours/review period
Practitioner non-billable hours
5 hours/review period
Loaded practitioner cost per hour
80 currency units/practitioner hour, ex tax
Practice fixed cost allocation
500 currency units/review period, ex tax
Target session margin
0.25 decimal fraction of session revenue

Calculation and outputs

  1. Scheduled sessions

    scheduledSessions = sum(session-type scheduled sessions)
    Standard sessions scheduled
    30 whole scheduled sessions/review period
    Standard session duration
    60 minutes/standard session
    Standard session fee
    150 currency units/standard session, ex tax
    Standard room and admin cost
    10 currency units/scheduled standard session, ex tax
    Standard session consumables
    5 currency units/completed standard session, ex tax
    Extended sessions scheduled
    8 whole scheduled sessions/review period
    Extended session duration
    90 minutes/extended session
    Extended session fee
    220 currency units/extended session, ex tax
    Extended room and admin cost
    14 currency units/scheduled extended session, ex tax
    Extended session consumables
    7 currency units/completed extended session, ex tax
    Target session margin
    0.25 decimal fraction of session revenue
    Expected completed sessions
    34.36 units
    Expected session revenue
    5,964.6 money
    Total session cost
    4,858.52 money
    Session-mix contribution
    1,106.08 money
    Session-mix margin
    0.185441 percent
    Required average session fee
    179.049936 money

    Engine result: 38 units

  2. Expected completed sessions

    expectedCompletedSessions = sum(scheduled sessions * (1 - cancellation rate))
    Standard sessions scheduled
    30 whole scheduled sessions/review period
    Standard cancellation rate
    0.1 decimal fraction of scheduled standard sessions cancelled
    Standard cancellation fee recovery
    0.5 decimal fraction of cancelled standard-session fees recovered
    Extended sessions scheduled
    8 whole scheduled sessions/review period
    Extended cancellation rate
    0.08 decimal fraction of scheduled extended sessions cancelled
    Extended cancellation fee recovery
    0.5 decimal fraction of cancelled extended-session fees recovered
    Scheduled sessions
    38 units
    Practitioner capacity used
    0.94 percent

    Engine result: 34.36 units

  3. Expected session revenue

    expectedRevenueExTax = completed fees + recovered cancellation fees
    Standard cancellation rate
    0.1 decimal fraction of scheduled standard sessions cancelled
    Standard cancellation fee recovery
    0.5 decimal fraction of cancelled standard-session fees recovered
    Standard session consumables
    5 currency units/completed standard session, ex tax
    Extended cancellation rate
    0.08 decimal fraction of scheduled extended sessions cancelled
    Extended cancellation fee recovery
    0.5 decimal fraction of cancelled extended-session fees recovered
    Extended session consumables
    7 currency units/completed extended session, ex tax
    Expected completed sessions
    34.36 units

    Engine result: 5,964.6 money

  4. Practitioner cost

    practitionerCostExTax = (scheduled clinical hours + non-billable hours) * loaded practitioner cost
    Standard sessions scheduled
    30 whole scheduled sessions/review period
    Standard room and admin cost
    10 currency units/scheduled standard session, ex tax
    Extended sessions scheduled
    8 whole scheduled sessions/review period
    Extended room and admin cost
    14 currency units/scheduled extended session, ex tax
    Practitioner available hours
    50 hours/review period
    Practitioner non-billable hours
    5 hours/review period
    Loaded practitioner cost per hour
    80 currency units/practitioner hour, ex tax
    Practice fixed cost allocation
    500 currency units/review period, ex tax
    Scheduled sessions
    38 units
    Room and administration cost
    412 money
    Consumables cost
    186.52 money
    Total session cost
    4,858.52 money
    Practitioner capacity used
    0.94 percent

    Engine result: 3,760 money

  5. Room and administration cost

    roomAdminCostExTax = sum(scheduled sessions * room/admin cost)
    Standard sessions scheduled
    30 whole scheduled sessions/review period
    Standard room and admin cost
    10 currency units/scheduled standard session, ex tax
    Extended sessions scheduled
    8 whole scheduled sessions/review period
    Extended room and admin cost
    14 currency units/scheduled extended session, ex tax
    Loaded practitioner cost per hour
    80 currency units/practitioner hour, ex tax
    Practice fixed cost allocation
    500 currency units/review period, ex tax
    Scheduled sessions
    38 units
    Expected completed sessions
    34.36 units
    Practitioner cost
    3,760 money
    Consumables cost
    186.52 money
    Total session cost
    4,858.52 money

    Engine result: 412 money

  6. Consumables cost

    consumablesCostExTax = sum(completed sessions * consumables cost)
    Standard sessions scheduled
    30 whole scheduled sessions/review period
    Standard room and admin cost
    10 currency units/scheduled standard session, ex tax
    Standard session consumables
    5 currency units/completed standard session, ex tax
    Extended sessions scheduled
    8 whole scheduled sessions/review period
    Extended room and admin cost
    14 currency units/scheduled extended session, ex tax
    Extended session consumables
    7 currency units/completed extended session, ex tax
    Loaded practitioner cost per hour
    80 currency units/practitioner hour, ex tax
    Practice fixed cost allocation
    500 currency units/review period, ex tax
    Scheduled sessions
    38 units
    Expected completed sessions
    34.36 units
    Practitioner cost
    3,760 money
    Room and administration cost
    412 money
    Total session cost
    4,858.52 money

    Engine result: 186.52 money

  7. Total session cost

    totalCostExTax = practitioner + room/admin + consumables + fixed cost
    Standard room and admin cost
    10 currency units/scheduled standard session, ex tax
    Standard session consumables
    5 currency units/completed standard session, ex tax
    Extended room and admin cost
    14 currency units/scheduled extended session, ex tax
    Extended session consumables
    7 currency units/completed extended session, ex tax
    Practitioner available hours
    50 hours/review period
    Practitioner non-billable hours
    5 hours/review period
    Loaded practitioner cost per hour
    80 currency units/practitioner hour, ex tax
    Practice fixed cost allocation
    500 currency units/review period, ex tax
    Practitioner cost
    3,760 money
    Room and administration cost
    412 money
    Consumables cost
    186.52 money
    Practitioner capacity used
    0.94 percent

    Engine result: 4,858.52 money

  8. Practitioner capacity used

    capacityUtilisationRate = (scheduled clinical hours + non-billable hours) / available hours
    Standard sessions scheduled
    30 whole scheduled sessions/review period
    Extended sessions scheduled
    8 whole scheduled sessions/review period
    Practitioner available hours
    50 hours/review period
    Practitioner non-billable hours
    5 hours/review period
    Scheduled sessions
    38 units

    Engine result: 0.94 percent

  9. Session-mix contribution

    contributionExTax = expected revenue - total cost
    Standard room and admin cost
    10 currency units/scheduled standard session, ex tax
    Extended room and admin cost
    14 currency units/scheduled extended session, ex tax
    Loaded practitioner cost per hour
    80 currency units/practitioner hour, ex tax
    Practice fixed cost allocation
    500 currency units/review period, ex tax
    Expected completed sessions
    34.36 units
    Expected session revenue
    5,964.6 money
    Practitioner cost
    3,760 money
    Room and administration cost
    412 money
    Consumables cost
    186.52 money
    Total session cost
    4,858.52 money

    Engine result: 1,106.08 money

  10. Session-mix margin

    contributionMargin = contribution / expected revenue
    Expected completed sessions
    34.36 units
    Expected session revenue
    5,964.6 money
    Session-mix contribution
    1,106.08 money

    Engine result: 0.185441 percent

  11. Required average session fee

    requiredAverageSessionFeeExTax = total cost / (1 - target margin) / expected paid fee units
    Standard session fee
    150 currency units/standard session, ex tax
    Standard cancellation fee recovery
    0.5 decimal fraction of cancelled standard-session fees recovered
    Standard room and admin cost
    10 currency units/scheduled standard session, ex tax
    Extended session fee
    220 currency units/extended session, ex tax
    Extended cancellation fee recovery
    0.5 decimal fraction of cancelled extended-session fees recovered
    Extended room and admin cost
    14 currency units/scheduled extended session, ex tax
    Loaded practitioner cost per hour
    80 currency units/practitioner hour, ex tax
    Practice fixed cost allocation
    500 currency units/review period, ex tax
    Target session margin
    0.25 decimal fraction of session revenue
    Expected completed sessions
    34.36 units
    Expected session revenue
    5,964.6 money
    Practitioner cost
    3,760 money
    Room and administration cost
    412 money
    Consumables cost
    186.52 money
    Total session cost
    4,858.52 money
    Session-mix margin
    0.185441 percent

    Engine result: 179.049936 money

Example

The worked rows below are evaluated at render time by the same shared engine and visible default fixture as the interactive workflow.

Scheduled sessions
38
Expected completed sessions
34.36
Expected session revenue
5,964.6 currency units
Practitioner cost
3,760 currency units
Room and administration cost
412 currency units
Consumables cost
186.52 currency units
Total session cost
4,858.52 currency units
Practitioner capacity used
94%
Session-mix contribution
1,106.08 currency units
Session-mix margin
18.5%
Required average session fee
179.05 currency units

The exact engine-derived outputs are shown in the labelled rows below.

Interpretation

Session economics must recover both contact and non-contact capacity plus cancellation exposure.

3. Validation and boundary checks

  • All inputs must be finite and inside the visible validation boundaries.
  • Rates are retained as decimal values and shown as percentages only at the presentation boundary.
  • The worked fixture must expose every declared result: scheduledSessions, expectedCompletedSessions, expectedRevenueExTax, practitionerCostExTax, roomAdminCostExTax, consumablesCostExTax, totalCostExTax, capacityUtilisationRate, contributionExTax, contributionMargin, requiredAverageSessionFeeExTax.
  • Scenario comparison changes one declared driver while holding the remaining industry records constant.
Standard sessions scheduled minimum
standardScheduledSessions โ‰ฅ 0 whole scheduled sessions/review period โ€” A lower value is rejected before calculation.
Standard sessions scheduled maximum
standardScheduledSessions โ‰ค 100,000,000 whole scheduled sessions/review period โ€” A higher value is rejected before calculation.
Standard session duration minimum
standardDurationMinutes โ‰ฅ 0 minutes/standard session โ€” A lower value is rejected before calculation.
Standard session duration maximum
standardDurationMinutes โ‰ค 1,440 minutes/standard session โ€” A higher value is rejected before calculation.
Standard session fee minimum
standardSessionFeeExTax โ‰ฅ 0 currency units/standard session, ex tax โ€” A lower value is rejected before calculation.
Standard session fee maximum
standardSessionFeeExTax โ‰ค 10,000,000 currency units/standard session, ex tax โ€” A higher value is rejected before calculation.
Standard cancellation rate minimum
standardCancellationRate โ‰ฅ 0 decimal fraction of scheduled standard sessions cancelled โ€” A lower value is rejected before calculation.
Standard cancellation rate maximum
standardCancellationRate โ‰ค 1 decimal fraction of scheduled standard sessions cancelled โ€” A higher value is rejected before calculation.
Standard cancellation fee recovery minimum
standardCancellationFeeRecoveryRate โ‰ฅ 0 decimal fraction of cancelled standard-session fees recovered โ€” A lower value is rejected before calculation.
Standard cancellation fee recovery maximum
standardCancellationFeeRecoveryRate โ‰ค 1 decimal fraction of cancelled standard-session fees recovered โ€” A higher value is rejected before calculation.
Standard room and admin cost minimum
standardRoomAdminCostPerSessionExTax โ‰ฅ 0 currency units/scheduled standard session, ex tax โ€” A lower value is rejected before calculation.
Standard room and admin cost maximum
standardRoomAdminCostPerSessionExTax โ‰ค 10,000,000 currency units/scheduled standard session, ex tax โ€” A higher value is rejected before calculation.
Standard session consumables minimum
standardConsumablesPerCompletedSessionExTax โ‰ฅ 0 currency units/completed standard session, ex tax โ€” A lower value is rejected before calculation.
Standard session consumables maximum
standardConsumablesPerCompletedSessionExTax โ‰ค 10,000,000 currency units/completed standard session, ex tax โ€” A higher value is rejected before calculation.
Extended sessions scheduled minimum
extendedScheduledSessions โ‰ฅ 0 whole scheduled sessions/review period โ€” A lower value is rejected before calculation.
Extended sessions scheduled maximum
extendedScheduledSessions โ‰ค 100,000,000 whole scheduled sessions/review period โ€” A higher value is rejected before calculation.
Extended session duration minimum
extendedDurationMinutes โ‰ฅ 0 minutes/extended session โ€” A lower value is rejected before calculation.
Extended session duration maximum
extendedDurationMinutes โ‰ค 1,440 minutes/extended session โ€” A higher value is rejected before calculation.
Extended session fee minimum
extendedSessionFeeExTax โ‰ฅ 0 currency units/extended session, ex tax โ€” A lower value is rejected before calculation.
Extended session fee maximum
extendedSessionFeeExTax โ‰ค 10,000,000 currency units/extended session, ex tax โ€” A higher value is rejected before calculation.
Extended cancellation rate minimum
extendedCancellationRate โ‰ฅ 0 decimal fraction of scheduled extended sessions cancelled โ€” A lower value is rejected before calculation.
Extended cancellation rate maximum
extendedCancellationRate โ‰ค 1 decimal fraction of scheduled extended sessions cancelled โ€” A higher value is rejected before calculation.
Extended cancellation fee recovery minimum
extendedCancellationFeeRecoveryRate โ‰ฅ 0 decimal fraction of cancelled extended-session fees recovered โ€” A lower value is rejected before calculation.
Extended cancellation fee recovery maximum
extendedCancellationFeeRecoveryRate โ‰ค 1 decimal fraction of cancelled extended-session fees recovered โ€” A higher value is rejected before calculation.
Extended room and admin cost minimum
extendedRoomAdminCostPerSessionExTax โ‰ฅ 0 currency units/scheduled extended session, ex tax โ€” A lower value is rejected before calculation.
Extended room and admin cost maximum
extendedRoomAdminCostPerSessionExTax โ‰ค 10,000,000 currency units/scheduled extended session, ex tax โ€” A higher value is rejected before calculation.
Extended session consumables minimum
extendedConsumablesPerCompletedSessionExTax โ‰ฅ 0 currency units/completed extended session, ex tax โ€” A lower value is rejected before calculation.
Extended session consumables maximum
extendedConsumablesPerCompletedSessionExTax โ‰ค 10,000,000 currency units/completed extended session, ex tax โ€” A higher value is rejected before calculation.
Practitioner available hours minimum
practitionerAvailableHours โ‰ฅ 0 hours/review period โ€” A lower value is rejected before calculation.
Practitioner available hours maximum
practitionerAvailableHours โ‰ค 100,000 hours/review period โ€” A higher value is rejected before calculation.
Practitioner non-billable hours minimum
practitionerNonBillableHours โ‰ฅ 0 hours/review period โ€” A lower value is rejected before calculation.
Practitioner non-billable hours maximum
practitionerNonBillableHours โ‰ค 100,000 hours/review period โ€” A higher value is rejected before calculation.
Loaded practitioner cost per hour minimum
loadedPractitionerCostPerHourExTax โ‰ฅ 0 currency units/practitioner hour, ex tax โ€” A lower value is rejected before calculation.
Loaded practitioner cost per hour maximum
loadedPractitionerCostPerHourExTax โ‰ค 10,000,000 currency units/practitioner hour, ex tax โ€” A higher value is rejected before calculation.
Practice fixed cost allocation minimum
periodFixedCostExTax โ‰ฅ 0 currency units/review period, ex tax โ€” A lower value is rejected before calculation.
Practice fixed cost allocation maximum
periodFixedCostExTax โ‰ค 10,000,000 currency units/review period, ex tax โ€” A higher value is rejected before calculation.
Target session margin minimum
targetMargin โ‰ฅ 0 decimal fraction of session revenue โ€” A lower value is rejected before calculation.
Target session margin maximum
targetMargin โ‰ค 0.99 decimal fraction of session revenue โ€” A higher value is rejected before calculation.

4. Assumptions and source classification

  • Costs, capacity, contract terms, tax rates and targets are supplied by the user.
  • No provider default, jurisdictional rule or industry benchmark is embedded.
  • The shared engine retains full precision and display formatting never feeds calculation.

This planner has no current policy-data dependency. Its commercial assumptions are user supplied. Registered family-level regression suites exercise the shared business-logic engine and worked-result reconciliation.

5. Limitations

  • Results are only as reliable as the timing, scope and basis of the entered records.
  • The workflow does not predict demand or establish accounting, tax, contractual or legal treatment.
  • Session fees, cancellation recovery, practitioner loaded cost and capacity are editable commercial assumptions; no public or private reimbursement schedule, clinical funding rule, award rate or professional requirement is modelled.
  • The result supports practice economics only and does not assess clinical appropriateness, patient entitlement or healthcare compliance.

This is educational decision support, not tax, accounting, legal or financial advice. Check the treatment of your actual transactions under the rules that apply to your business and seek qualified advice where appropriate.

6. Update and evidence policy

Registered family-level suites test formula invariants and example reconciliation; the release ledger records that coverage without claiming a separate oracle for every line of public copy. There is no official threshold or benchmark to refresh for this planner. Commercial inputs remain user-supplied because they vary by business and contract.

Change history

  1. : Initial public release of the Allied Health Session Pricing planner and methodology.

Guides to interpret the decision and its assumptions.

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