--- title: "Production vs collections in a dental practice | Copeland Consulting Services" description: "Dental production is billed value, collections is money received. See gross, adjusted and net production, the collection percentage and an ADA example." url: https://joncopeland.multisites.ai/blog/dental-production-vs-collections publisher: Copeland Consulting Services email: drcopeland@joncopelanddds.com contact: https://joncopeland.multisites.ai/contact --- # Production vs collections in a dental practice Production is the value of treatment a practice bills. Collections is the money it actually receives. In an ADA crown example, total production was $1,500 and collections were $950, which is 95% of billable production but 63% of total production. Always ask which base a percentage uses. Practice managementPublished October 26, 20264 min read Production and collections are two of the most used numbers in a dental office. They are not the same number, and mixing them leads to wrong comparisons. This post explains both terms with a worked example from the American Dental Association (ADA). Sources were opened on October 26, 2026. It is general information, not accounting advice. Ask your CPA how your books define these terms. ## What is dental production? [Production](https://joncopeland.multisites.ai/glossary/production) is the value of dental work the practice bills. The ADA’s compensation page for associates defines total production as the total amount the office will bill for a procedure under its established fee schedule. It defines adjusted, or billable, production as the amount the office is contractually allowed to collect, usually set by third-party payors. Practices often track these as [gross production](https://joncopeland.multisites.ai/glossary/gross-production) and net production. Names vary by software and office, so ask for the formula behind any report. ## What are collections? [Collections](https://joncopeland.multisites.ai/glossary/collections) is the net amount the office actually collects. The ADA page defines it that way. It counts money from insurance and from patients after write-offs and adjustments. A write-off is a fee the practice agrees not to collect, often because of an insurance contract. The ADA formula for the collection percentage is collections divided by production, times 100. The same page warns that you must know whether the practice uses total production or adjusted production as the base. ## How do the numbers differ in a real example? The ADA page walks through one crown. The fee schedule lists $1,500, and a PPO allows $1,000. The plan pays $500, and the patient pays $450. The practice writes off $50. Measure Amount Total production $1,500 Billable (adjusted) production $1,000 Paid by insurance $500 Paid by patient $450 Written off $50 Total collections $950 Collection percentage on billable production 95% Collection percentage on total production 63% Same crown, same payments, two percentages. The base changes the answer. This is why a goal such as “collect 98%” is unclear until someone says which production figure is meant. The ADA page uses the example to show how pay for an associate can differ: 35% of collections, 35% of adjusted production and 30% of total production give different dollar amounts for one crown. The post on [associate compensation models](https://joncopeland.multisites.ai/blog/dental-associate-compensation-models) covers that side. ## How does insurance change the gap? The ADA page says that when a practice accepts many discounted plans, such as PPOs or DMOs, total production will probably differ from billable production. The variance may be small, but if it is large, the page advises associates to ask how it affects pay. The questions it suggests include which patients each dentist sees, what the reimbursement rates are, whether the practice has trouble collecting from any plan, and whether lower-paying plans could be dropped. Owners can use the same questions on their own books. Two practices with the same total production can collect different amounts if their payer mix differs. ## What does the ADA say about collecting net production? An ADA finance page says many successful practices collect 100 percent of net production. It says many teams settle for 97 or 98 percent. Its example: $100,000 of gross production a month results in $92,000 net after insurance write-offs, professional courtesies and other adjustments, and the practice should collect at least $92,000. The page draws on work by consultant Ken Runkle. It is guidance, not a published standard, and the $100,000 figure is an illustration. The result depends on a consistent definition of net. ## How can an owner set up a simple check? An owner can test the definitions with one month of data. These steps are a worksheet idea, not an accounting standard. 1. Pull total production from the practice management report. 2. Pull adjusted production after write-offs and contract adjustments. 3. Pull collections for the same period. 4. Divide collections by each production figure. 5. Write down the formula and the base next to the result. Repeat the check each month with the same definitions. A trend with a stable definition tells more than a one-time number. Ask your CPA how to treat timing, such as payments that arrive after the month ends. ## Why do production figures need a definition? A 2025 Dental Economics survey by Levin Group reported average production per doctor of $1,004,178, and it said that figure includes hygiene production. If one office reports doctor-only production and another includes hygiene, the two numbers are not comparable. The survey covered mostly independent general dentists, so it does not describe all practices. Keep these checks in mind. 1. Name the base: total, adjusted or net production. 2. Say whether hygiene production is included. 3. Use the same time period for both numbers. 4. Note whether adjustments are posted when treatment is done or later. The [collection ratio](https://joncopeland.multisites.ai/glossary/collection-ratio) is the glossary term for this comparison. The guide on [dental practice KPIs and benchmarks](https://joncopeland.multisites.ai/guides/dental-practice-kpis-and-benchmarks) lists related measures, and the post on [overhead percentage](https://joncopeland.multisites.ai/blog/dental-practice-overhead-percentage) shows how the base choice changes another number. ## Next step To compare production, collections and other numbers in one place, read the guide on [dental practice KPIs and benchmarks](https://joncopeland.multisites.ai/guides/dental-practice-kpis-and-benchmarks). The guide to [dental practice management](https://joncopeland.multisites.ai/guides/dental-practice-management) covers the systems behind them. Contact Dr. Copeland about [consulting questions](https://joncopeland.multisites.ai/contact?topic=consulting). Dr. Jon Copeland, DDS, is a general dentist in Wildwood, Missouri. ## Frequently asked questions ### What is the difference between production and collections? Production is the amount a practice bills for treatment under its fee schedule. Collections is the net amount it actually receives. Insurance write-offs and other adjustments sit between the two. The ADA compensation page defines both terms. ### What is the collection percentage formula? The ADA gives it as collections divided by production, times 100. The ADA notes that you must know whether production means total production or adjusted production, because the result changes. In its crown example, the figure is 95% on one base and 63% on the other. ### Should a practice collect 100% of net production? An ADA finance page says many financially successful practices collect 100 percent of net production and says many teams settle for 97 or 98 percent. That is guidance drawn from consultant material, not a published standard. Define net the same way every time before you measure. ## Terms on this page - [American Dental Association](https://joncopeland.multisites.ai/glossary/american-dental-association) - [Dental practice management](https://joncopeland.multisites.ai/glossary/dental-practice-management) - [Associate compensation](https://joncopeland.multisites.ai/glossary/associate-compensation) - [Dental practice KPIs](https://joncopeland.multisites.ai/glossary/dental-practice-kpis) - [Overhead percentage](https://joncopeland.multisites.ai/glossary/overhead-percentage) - [Collection ratio](https://joncopeland.multisites.ai/glossary/collection-ratio) - [Gross production](https://joncopeland.multisites.ai/glossary/gross-production) - [Net production](https://joncopeland.multisites.ai/glossary/net-production) - [Fee schedule](https://joncopeland.multisites.ai/glossary/fee-schedule) - [Collections](https://joncopeland.multisites.ai/glossary/collections) ## Sources 1. [American Dental Association: Dentist compensation, what every dental associate should know](https://www.ada.org/resources/careers/dentist-compensation) 2. [American Dental Association: Six Ways to Strengthen Your Practice's Bottom Line](https://www.ada.org/resources/practice/practice-management/finances/six-habits-of-financially-secure-practices) 3. [Dental Economics (Levin Group): Higher production helps offset chronic overhead increases, May 2025](https://www.dentaleconomics.com/practice/overhead-and-profitability/article/55280684/higher-production-helps-offset-chronic-overhead-increases) Written by Copeland Consulting Services and checked against the sources above on October 26, 2026. Rules, data and guidance change, so check the linked page before you act on it. ## Keep reading - [Dental practice KPIs and benchmarks: formulas, sources and limitsA dental practice KPI is a number the team tracks on a schedule, such as collections, overhead percentage, no-show rate or case acceptance. Few KPIs have an official benchmark. The ADA publishes survey averages for income and billings. Most other benchmarks online come from vendors, and formulas differ, so compare your own trend first.](https://joncopeland.multisites.ai/guides/dental-practice-kpis-and-benchmarks) - [Dental associate compensation models explainedThe ADA lists four common models for dentist pay: straight salary, salary-plus, straight commission, and net profit. Commission models depend on whether pay is figured on total production, adjusted production, or collections. The same crown can produce very different pay under each base. Ask for a written formula and run sample numbers.](https://joncopeland.multisites.ai/blog/dental-associate-compensation-models) - [What is a normal overhead percentage for a dental practice?No official standard exists for dental overhead. A 2025 Overjet vendor blog says 60-65% of collections is typical and attributes that to the ADA, which this post could not confirm. A 2025 Dental Economics survey found overhead rose 5.1% in 2024. Always check whether owner pay is included.](https://joncopeland.multisites.ai/blog/dental-practice-overhead-percentage) - [Dental practice management: people, money, schedule, patients and complianceDental practice management is the business side of running a dental office: finances, scheduling, patient communication, insurance decisions, team systems and legal compliance. Track a few core numbers, build written systems, review them on a set schedule, and use federal and ADA sources for compliance basics.](https://joncopeland.multisites.ai/guides/dental-practice-management) - [Dental associate contracts: terms, pay models and red flags to ask aboutA dental associate contract sets pay, status, duties, term, termination, insurance and limits on work after you leave. The ADA publishes a guide to key provisions and a compensation explainer. Pay models differ in what they count, so read the formula. Have an attorney in your state review any contract before you sign.](https://joncopeland.multisites.ai/guides/dental-associate-contracts) - [How to grow a dental practice: a systems guide with sourcesPractice growth comes from a small set of measurable systems: new patient flow, patient retention, schedule use, payer mix and overhead. Published data shows national demand is limited, so most practices grow by keeping patients, filling the schedule and reading their own numbers monthly. This guide lists each lever, how to measure it and what sources say.](https://joncopeland.multisites.ai/guides/grow-a-dental-practice) ## Talk with Dr. Copeland [Contact Dr. Copeland](https://joncopeland.multisites.ai/contact)[Email](mailto:drcopeland@joncopelanddds.com)