Practice management
Net production
Net production, also called adjusted or billable production, is the amount a practice is allowed to collect after payer contracts, discounts and adjustments reduce its gross billed fees.
Net production starts with gross production and removes amounts the practice has agreed not to collect. The ADA describes adjusted, or billable, production as the amount the office is contractually allowed to collect for a procedure, typically set by third-party payors. Its practice finance page uses almost the same idea: what you produce after third-party discounts. Net production is the better base for judging collections because it leaves out fees the practice cannot collect under its contracts. Some reports use other names for the same number, so owners should confirm what a report counts before comparing it with another practice or with a benchmark.