How a 3-location mental health practice recovered $13-15K/month
Anonymization note: Mental health group — patient-adjacent data and ongoing payer disputes require anonymity.
The billing team said everything was fine
Three locations, eight clinicians, one consolidated P&L. Net profit had collapsed from $13,659 to $4,675 per month — a 1.8% margin on $3.2M in revenue — and the owner could not point to a single location, clinician, or payer as the cause.
Their billing company reported acceptable denial rates. Their accountant provided only consolidated financials. All three locations lumped into one P&L. Nobody could tell which location was profitable, which was bleeding, or where the money was going.
The owner asked their billing team. The answer: "The numbers are normal for mental health."
$17K/month in leaked revenue
Unworked denials stacking up for months
Thousands per month in write-offs that should have been appeals
Underpayments accepted without appeal
Thousands per month paid below contracted rates with no follow-up
Claims sitting unsubmitted past timely filing limits
Thousands per month in permanently lost revenue
No location-level financial visibility
One location was running at a loss — invisible in consolidated reports
Location-level visibility and denial accountability
We separated the consolidated financials into location-level P&Ls. For the first time, the owner could see that one location was running at a significant monthly loss while another carried the entire practice.
Then we connected TherapyNotes billing data to the accounting platform. Denial rates, underpayments, and unworked claims became visible alongside the financial statements — not buried in a billing portal nobody checked.
Built location-level P&Ls from the consolidated financials
Integrated TherapyNotes billing data with accounting platform
Set up denial tracking with aging reports and accountability
Identified the worst-performing payer contracts by location
Established weekly revenue cycle review cadence
Recovered $13-15K/month within 90 days
Monthly recovered revenue
$0 (losses undetected)
$13-15K/month
Net profit margin
1.8%
6.4%
Denial follow-through rate
17%
86%
Financial visibility
1 consolidated P&L
3 location-level P&Ls
“We had no idea we were losing that much. Our billing company said the numbers were normal.”
Key Takeaway
If your accountant only sees consolidated financials, you cannot tell which location is profitable. And if nobody is reconciling billing data with bank deposits, you are trusting your billing company's self-reported numbers.
Methodology
Methodology: Recovered revenue is defined as the difference between billed and collected charges attributable to fixes Sorso identified and clients implemented, measured over 90-day windows post-engagement. Figures are specific to the engagement and are not predictions.
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