Collection Ratio

Healthy Net Production to Collection Ratio

Editor’s note: The DSO Secrets: Dentist Entrepreneurs Growing Dental Organizations Facebook page is a place to find resources, networking opportunities, information about upcoming industry events, and a forum to ask fellow dentist entrepreneurs questions you may have about running your business. The following was a recent discussion among DSO Secrets Facebook page members.

Vincent Crump asked: What do you consider a healthy net production to collection ratio?

A few of the DSO Secrets Facebook page members responses:

Patrick C Arnold: It depends on if the practice is multiple specialty and accepts DMO. But we typically range between 95% to 98%. This is a good high-level metric, but I would first focus on your RCM team and their process. > Crump: I totally agree Patrick. RCM is 9 times out of 10 the biggest area of opportunity I see when I do an assessment of a client. One of the first things I always coach.

Ashley Imperialy: 98% or above.

Matthew Standridge: 98% + is the goal. Alarm bells go off if under 96%. Russ Morrow: Heartland sets our thrive number for 98%.

Michael Bonanno: Over 100%. The office should be pre-collecting. > Danielle Cuthbertson: 100% you’re not taking enough risk – you are letting dentistry walk out the door.

Tanner Applegate: This is a terrible metric. Don’t measure it. It will give you false confidence in your RCM process.