Methodology
Allied Health Session Pricing Planner methodology
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
scheduledSessions = sum(session-type scheduled sessions)Where
- scheduledSessions
- Scheduled sessions (units)Source: Calculated output
expectedCompletedSessions = sum(scheduled sessions * (1 - cancellation rate))Where
- scheduledSessions
- Scheduled sessions (units)Source: Calculated output
- expectedCompletedSessions
- Expected completed sessions (units)Source: Calculated output
expectedRevenueExTax = completed fees + recovered cancellation feesWhere
- expectedRevenueExTax
- Expected session revenue (currency units, ex tax)Source: Calculated output
practitionerCostExTax = (scheduled clinical hours + non-billable hours) * loaded practitioner costWhere
- 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
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
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
totalCostExTax = practitioner + room/admin + consumables + fixed costWhere
- 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
capacityUtilisationRate = (scheduled clinical hours + non-billable hours) / available hoursWhere
- capacityUtilisationRate
- Practitioner capacity used (decimal rate)Source: Calculated output
contributionExTax = expected revenue - total costWhere
- 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
contributionMargin = contribution / expected revenueWhere
- 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
requiredAverageSessionFeeExTax = total cost / (1 - target margin) / expected paid fee unitsWhere
- 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
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
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
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
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
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
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
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
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
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
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
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 โฅ 0 whole scheduled sessions/review periodโ A lower value is rejected before calculation.- Standard sessions scheduled maximum
standardScheduledSessions โค 100,000,000 whole scheduled sessions/review periodโ A higher value is rejected before calculation.- Standard session duration minimum
standardDurationMinutes โฅ 0 minutes/standard sessionโ A lower value is rejected before calculation.- Standard session duration maximum
standardDurationMinutes โค 1,440 minutes/standard sessionโ A higher value is rejected before calculation.- Standard session fee minimum
standardSessionFeeExTax โฅ 0 currency units/standard session, ex taxโ A lower value is rejected before calculation.- Standard session fee maximum
standardSessionFeeExTax โค 10,000,000 currency units/standard session, ex taxโ A higher value is rejected before calculation.- Standard cancellation rate minimum
standardCancellationRate โฅ 0 decimal fraction of scheduled standard sessions cancelledโ A lower value is rejected before calculation.- Standard cancellation rate maximum
standardCancellationRate โค 1 decimal fraction of scheduled standard sessions cancelledโ A higher value is rejected before calculation.- Standard cancellation fee recovery minimum
standardCancellationFeeRecoveryRate โฅ 0 decimal fraction of cancelled standard-session fees recoveredโ A lower value is rejected before calculation.- Standard cancellation fee recovery maximum
standardCancellationFeeRecoveryRate โค 1 decimal fraction of cancelled standard-session fees recoveredโ A higher value is rejected before calculation.- Standard room and admin cost minimum
standardRoomAdminCostPerSessionExTax โฅ 0 currency units/scheduled standard session, ex taxโ A lower value is rejected before calculation.- Standard room and admin cost maximum
standardRoomAdminCostPerSessionExTax โค 10,000,000 currency units/scheduled standard session, ex taxโ A higher value is rejected before calculation.- Standard session consumables minimum
standardConsumablesPerCompletedSessionExTax โฅ 0 currency units/completed standard session, ex taxโ A lower value is rejected before calculation.- Standard session consumables maximum
standardConsumablesPerCompletedSessionExTax โค 10,000,000 currency units/completed standard session, ex taxโ A higher value is rejected before calculation.- Extended sessions scheduled minimum
extendedScheduledSessions โฅ 0 whole scheduled sessions/review periodโ A lower value is rejected before calculation.- Extended sessions scheduled maximum
extendedScheduledSessions โค 100,000,000 whole scheduled sessions/review periodโ A higher value is rejected before calculation.- Extended session duration minimum
extendedDurationMinutes โฅ 0 minutes/extended sessionโ A lower value is rejected before calculation.- Extended session duration maximum
extendedDurationMinutes โค 1,440 minutes/extended sessionโ A higher value is rejected before calculation.- Extended session fee minimum
extendedSessionFeeExTax โฅ 0 currency units/extended session, ex taxโ A lower value is rejected before calculation.- Extended session fee maximum
extendedSessionFeeExTax โค 10,000,000 currency units/extended session, ex taxโ A higher value is rejected before calculation.- Extended cancellation rate minimum
extendedCancellationRate โฅ 0 decimal fraction of scheduled extended sessions cancelledโ A lower value is rejected before calculation.- Extended cancellation rate maximum
extendedCancellationRate โค 1 decimal fraction of scheduled extended sessions cancelledโ A higher value is rejected before calculation.- Extended cancellation fee recovery minimum
extendedCancellationFeeRecoveryRate โฅ 0 decimal fraction of cancelled extended-session fees recoveredโ A lower value is rejected before calculation.- Extended cancellation fee recovery maximum
extendedCancellationFeeRecoveryRate โค 1 decimal fraction of cancelled extended-session fees recoveredโ A higher value is rejected before calculation.- Extended room and admin cost minimum
extendedRoomAdminCostPerSessionExTax โฅ 0 currency units/scheduled extended session, ex taxโ A lower value is rejected before calculation.- Extended room and admin cost maximum
extendedRoomAdminCostPerSessionExTax โค 10,000,000 currency units/scheduled extended session, ex taxโ A higher value is rejected before calculation.- Extended session consumables minimum
extendedConsumablesPerCompletedSessionExTax โฅ 0 currency units/completed extended session, ex taxโ A lower value is rejected before calculation.- Extended session consumables maximum
extendedConsumablesPerCompletedSessionExTax โค 10,000,000 currency units/completed extended session, ex taxโ A higher value is rejected before calculation.- Practitioner available hours minimum
practitionerAvailableHours โฅ 0 hours/review periodโ A lower value is rejected before calculation.- Practitioner available hours maximum
practitionerAvailableHours โค 100,000 hours/review periodโ A higher value is rejected before calculation.- Practitioner non-billable hours minimum
practitionerNonBillableHours โฅ 0 hours/review periodโ A lower value is rejected before calculation.- Practitioner non-billable hours maximum
practitionerNonBillableHours โค 100,000 hours/review periodโ A higher value is rejected before calculation.- Loaded practitioner cost per hour minimum
loadedPractitionerCostPerHourExTax โฅ 0 currency units/practitioner hour, ex taxโ A lower value is rejected before calculation.- Loaded practitioner cost per hour maximum
loadedPractitionerCostPerHourExTax โค 10,000,000 currency units/practitioner hour, ex taxโ A higher value is rejected before calculation.- Practice fixed cost allocation minimum
periodFixedCostExTax โฅ 0 currency units/review period, ex taxโ A lower value is rejected before calculation.- Practice fixed cost allocation maximum
periodFixedCostExTax โค 10,000,000 currency units/review period, ex taxโ A higher value is rejected before calculation.- Target session margin minimum
targetMargin โฅ 0 decimal fraction of session revenueโ A lower value is rejected before calculation.- Target session margin maximum
targetMargin โค 0.99 decimal fraction of session revenueโ 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
- : Initial public release of the Allied Health Session Pricing planner and methodology.
Related reading
Guides to interpret the decision and its assumptions.
- Service Pricing and Quoting: From Capacity to Scope
Turn cost and sellable capacity into a service rate, then test scope, duration, delivery risk and commercial model.
Read guide