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What is this?
90-Day Collection Percent is like tracking how well you retrieve items lent to friends. It calculates how much money your dental practice has collected compared to what was owed over 90 days. This percentage shows how efficiently your practice is at getting paid for services.
Formula: 90-Day Collection Percent = 90-Day Revenue Collected / 90-Day Gross or Net Production
What to Watch Out For
Large Difference Between Gross % and Net %: If the Gross Percentage is low and the Net Percentage is high, this indicates that you have a substantial number of write-offs and/or adjustments.
Production Settings: The Net % is calculated with the Net Production setting that you have selected within Dental Intelligence.
Understanding Gross & Net %
Low Gross & Net %: Trouble collecting AR from patients/insurance.
Low Gross %, High Net %: Many write-offs/adjustments; not necessarily bad but worth investigating.
Similar Gross & Net %: Few write-offs/adjustments; typically positive.
Targeting High Net %: Over 100% indicates pre-collecting, a sign of effective financial management.
Why is this metric important?
The 90-Day Collection Percent is important because it can provide crucial insights such as:
Knowing How Fast You Get Paid: The 90-Day Collection Percent tells you how quickly your dental practice gets paid by patients. It’s like keeping track of when friends pay you back.
A Check on Your Business Health: If you’re getting paid for most of your work within 45 days, that’s good! It means your practice is doing well with money.
Helps You Plan: Want to know how much work you need to do to make a specific amount, like $100,000? This number helps you figure that out.
A Money Thermometer: Think of it as a thermometer but for money. It helps you see how much money is coming into your practice and whether things are going well or not.