A full-year operating view of a five-location primary care group in South Texas — where revenue is made, where it leaks, where it accumulates, and what it is worth to the owner.
Revenue is steady and growing at 2.4% YoY — healthy for an established group. The two Corpus clinics carry half the practice volume. Revenue is the input; everything downstream is the work.
Revenue growth is real but modest — 2.4% YoY is the floor, not the ceiling. The two Corpus locations carry half the network; the outlying clinics carry the rest. Growing revenue matters less here than stopping the leaks in the next three engines.
A 15% operating margin is 13 points below the MGMA primary care median. Expenses are running heavy. Meaningful trim opportunity exists alongside the revenue capture story.
Three lines worth auditing first: salaries scaling faster than visit volume, software sprawl in IT (↑ 100% in two years), and a growing other-operating line that hides miscellaneous spend. Cost discipline alone won’t solve this — it has to run alongside revenue capture.
The gap between billed and collected is where the largest recoverable dollars live. EMG's collection cycle is functional — but the ceiling hasn't been touched.
Closing the collection gap from 92.4% to 95% is worth roughly $183K annually. The 8.7% denial rate is the operating handle — 99214 documentation issues and preventive-visit eligibility checks drive most of the volume. Workable in months, not years.
Unused capacity is the most expensive thing in a clinic. EMG runs at 78% schedule utilization — roughly one in five available appointment slots produced no revenue this year.
Closing utilization from 78% to 85% across the network represents ~$485K of latent revenue — not from working harder, from capturing demand already present. Friday afternoons at the outlying clinics are the single largest pattern. The fix is operational, not clinical.
EMG’s WellMed contract pays meaningful annual bonuses against MLR score and patient star rating. The current tier is producing $600K. The top tier produces $1.5M.
The $900K bonus gap is the highest-leverage single opportunity in this report. MLR moves with documentation accuracy and care coordination. Stars move with the same operational consistency that improves utilization, no-show, and patient experience already discussed here. The four prior engines and this one are not separate stories. They are the same story, from a different angle.
Every prior section is operating math. This section is owner math — the same dollars, measured by what they return to the person who built the practice and bears the risk.
A practice returning $1.04M of NOI today with the operating gaps unresolved is not the same practice that returns it with them closed. The question is not what it’s worth on the open market today — it is how much fruit it produces, indefinitely, and whether the orchard’s health is improving year over year.
Closing the five gaps in this report is worth approximately $2.4M of incremental annual NOI — expense discipline, collection recovery, capacity capture, and the WellMed bonus tier combined. At a 4.4× multiple, that’s $10.5M of additional practice value — more than tripling today’s figure without acquiring a single new patient.
Corpus locations lead on every metric. The spread is the network’s clearest standardization opportunity. Click any location for the full operating detail.
Six engines, one practice. The work isn’t building something new — it’s pulling what’s already running into a tighter operating standard. We’d like to do that with you.
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Value-Based Care performance (MLR score, WellMed bonus, MA lives) and Owner Engine economics (effective hourly rate, valuation, wealth velocity) are measured at the practice level and not broken out per location.