Recovering the Lost Revenue: Why Your Practice is Collecting at 91%

Show notes

Are you producing $1 million but only collecting $910,000? Where is the other $90,000 going?

In this episode, we take a closer look at one of the biggest financial issues facing dental practices: the gap between production and collections.

A 91% collection rate may sound good, but on $1 million in production, that means $90,000 is not being collected. Year after year, that gap can turn into hundreds of thousands of dollars in lost revenue.

We discuss why practice owners need to understand the difference between what their practice produces and what it actually collects, how these financial leaks happen, and why uncollected revenue is not an investment—it’s money your practice has already earned.

Most importantly, we share practical strategies to help you close the collection gap, recover lost revenue, and improve the financial health of your practice.

Because producing more isn’t always the answer. Sometimes, the biggest opportunity is collecting more of what you’ve already produced.

Takeaways:

• The significant disparity between production and collections indicates a serious financial leak within a dental practice.
• Practices that consistently collect only 91% of their production incur substantial losses over time, amounting to hundreds of thousands of dollars.
• Effective collection strategies focus on recovering money already earned rather than creating new income streams through increased production.
• Monitoring both the collection percentage and adjustments provides invaluable insights into a practice's financial health and operational efficiency.

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