A CEO-stage clinic nets over four times more profit than a solo clinic, despite keeping less than half the margin

HMDG's Private Practice Barometer 2026 worked out that a solo physio clinic keeping 37% of a modest £92,000 turnover ends up with £34,000, while a CEO-stage clinic keeping just 18% of £833,000 walks off with £150,000. This includes practices like yours, if yours happens to be a physio clinic, or anything else run on percentages instead of pounds.

Page updated: 13 Aug 2026

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Clinics chasing a healthy-looking profit margin percentage are, on this evidence, chasing the wrong number entirely, and the consequence is staying small on purpose.

Original Research	HMDG names the gap between margin percentage and margin in pounds the "Profitability Paradox", using a solo clinic and a CEO-stage clinic as its worked example.
Source	https://hmdg.co.uk/private-practice-barometer/physio-clinic-profit-margins-uk-2026/
Overview	The Barometer benchmarks profit margins across UK physio clinics at different growth stages, published by consultancy HMDG as part of its annual private practice research.
Year	2026
Publisher	Brand, HMDG
Relevance to Wellbeing	Speaks directly to any clinic owner who's been told a shrinking margin means failure, when it might just mean scale.
Our Verdict	Too early to tell The numbers are internally consistent and the concept is genuinely useful, though nobody's shown their working.
Our Summary	Turns a fuzzy anxiety, "my margin's dropping", into a calmer one, "my profit isn't". No sample size or methodology given, so treat the exact figures as illustrative rather than gospel. The "Profitability Paradox" label is memorable enough to borrow for your own content, with credit. Built entirely around UK physio clinics, so the pound figures won't transfer neatly to other practice types.
Our Geo View	UK-specific figures, given in pounds sterling; treat the pound amounts as illustrative if you practise outside the UK.

Abstract of wellbeing niches and revenue flow

Recognise how this might impact your practice

Why this might matter to you

Coaching: this matters because coaches scaling into group programmes often watch their margin percentage drop and panic, when the pounds in the bank tell a calmer story.
Therapy: this matters because private therapists weighing up hiring associates need to know a lower personal margin can still mean more take-home pay overall.
Training: this matters because trainers building out a studio or team model will hit the same paradox the moment overheads multiply faster than fees.
Alternative Healing: this matters because healers renting bigger spaces or taking on practitioners will see their percentage shrink long before their bank balance does.
Clinical: this matters because clinics are the exact subject of this data, so the numbers apply with unusual precision rather than the usual polite squinting.
Retreat/Centre: this matters because centres running on shared overheads and multiple staff are the most likely of all to mistake a falling margin for a failing business.

Where this came from

HMDG's 2026 barometer argues that clinics fixated on margin percentage are measuring the wrong thing, and puts pounds and pence behind the argument.

HMDG, Private Practice Barometer 2026, published 2026.

Credibility flags: methodology not disclosed. Sample size not disclosed. Publisher is a private consultancy selling advisory services to clinics, so this is informed opinion backed by proprietary data rather than independent academic research.

Practice fit: 100 · Recency: 100 · Method confidence: 50

It scores full marks for practice fit, being about clinics specifically, and full marks for being fresh, but gets marked down on how solid the method is, since neither the sample nor the workings are shown.

It's worth considering changes to your marketing practices

What this means for your marketing

Put the phrase "profit in pounds, not percent" somewhere on your growth-stage messaging.
Say the margin will drop before a prospective client brings it up themselves.
Brief your team on the difference between margin percentage and margin pounds, so nobody panics at the next set of accounts.
Use "Profitability Paradox" in a caption or two, and credit HMDG when you do.
Show solo-practice clients the £34,000 versus £150,000 comparison before you pitch them on scaling up.

Who this is most useful for

Practice type	Relevance	Recommended action
Coaching	Medium	Borrow the framing for any coach moving from 1:1 to group work.
Therapy	Medium	Use it when discussing associate hires with therapy clients.
Training	Medium	Apply the logic when studios add trainers or classes.
Alternative Healing	Low	Mention it only if the practice is scaling staff or space.
Clinical	High	Lead with these exact figures, they're built for you.
Retreat/Centre	High	Use it as a talking point for centres nervous about shrinking margins.

Best before

Best before: revisit this once HMDG publishes next year's barometer, or sooner if you manage to prise the underlying sample size out of them.

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