Margin ArchitectureSynthetic example · not client data
What an allocation can tell you.
Eight invented clinics and $31.2M of revenue. The clinic view spreads $4.6M of corporate cost by revenue. Compare it with allocation based on resource use. Both preserve the same consolidated EBITDA.
EBITDA by clinic.
In this example, billing and support usage differs from revenue share. The revised view allocates shared costs using stated resource-use assumptions and returns $720k of physician compensation to the relevant clinics.
Consolidated EBITDA remains $3,584k. The allocation by clinic changes; total profit does not. A closure decision needs avoidable costs, costs that would remain, obligations and alternative uses of capacity.
Compare clinic economics.
The corrected view helps examine where resources are consumed. EBITDA after allocations is not the cash flow that would be preserved or lost by closing a clinic.
Clinic A consumes roughly 40% of the billing team’s effort while paying 22% of the pool. Its payer mix is 34% commercial, with heavy government and complex claims. Clinic G — simple payer mix, self-sufficient front desk — consumes about 3% and was charged as though it consumed its revenue share.
What happened to the corporate pool.
Two clinics’ medical directors were paid through the corporate entity — understating those clinics’ direct costs and inflating the allocation base for everyone else at the same time.
$720k returned, $3,880k reallocated. Physician compensation went back to Clinics B and E where the work is done. What remained was distributed by support consumption — claims complexity, call volume, billing effort — rather than by revenue share.
Size and allocated profitability.
Revenue on the horizontal axis and allocated EBITDA margin on the vertical. This comparison helps frame questions; it does not establish an acquisition recommendation.
Maintain the logic with the report.
Relevant definitions and checks become part of the agreed model and monthly cycle. This example shows the financial depth available within the reporting service.
No conclusion is made about closing or keeping a clinic. Any rent normalization requires evidence that the lease payment can change. Better allocation does not create cash or establish a saving.
Tell us what you need to report each month.
We start with your current reports, available sources, and the calendar your team needs. Setup and the monthly service are scoped in writing.