---
title: "What Is Collections-based pay? Dental Practice Glossary"
description: "A pay method that sets an associate dentist's earnings as a share of the money the practice actually collects from that dentist's patients, not of the fees..."
url: https://joncopeland.multisites.ai/glossary/collections-based-pay
publisher: Copeland Consulting Services
email: drcopeland@joncopelanddds.com
contact: https://joncopeland.multisites.ai/contact
---

Ownership and transitions

# Collections-based pay

A pay method that sets an associate dentist's earnings as a share of the money the practice actually collects from that dentist's patients, not of the fees billed.

Collections-based pay ties compensation to cash that reaches the practice. The ADA defines collections as the net amount the office actually collects for a procedure. Fees that the office writes off, or never receives, do not count toward the pay base.

This differs from [production-based pay](https://joncopeland.multisites.ai/glossary/production-based-pay), which uses the fees charged for the work. The ADA notes that a pay formula may use total production, adjusted production or collections.

The terms of the formula sit in the written contract, so readers often review the [employment agreement](https://joncopeland.multisites.ai/glossary/employment-agreement) with an attorney. Collections also depend on the practice's billing work, which the dentist may not control. This entry explains the term. It is not advice about any specific offer.

[Next stepPractice consulting with Dr. Copeland](https://joncopeland.multisites.ai/contact?topic=consulting)

## Related terms

-   [Production-based pay](https://joncopeland.multisites.ai/glossary/production-based-pay)
-   [Associate compensation](https://joncopeland.multisites.ai/glossary/associate-compensation)
-   [Collections](https://joncopeland.multisites.ai/glossary/collections)
-   [Employment agreement](https://joncopeland.multisites.ai/glossary/employment-agreement)

## Sources

1.  [ADA, Dentist compensation: what every dental associate should know](https://www.ada.org/resources/careers/dentist-compensation)
2.  [ADA, Dentist compensation: what every dental associate should know](https://www.ada.org/resources/careers/dentist-compensation)

## Talk with Dr. Copeland

[Contact Dr. Copeland](https://joncopeland.multisites.ai/contact)[Email](mailto:drcopeland@joncopelanddds.com)