1078: Metric Mondays: Gross Production vs. Net Production: What's the Real Difference? - Miranda Beeson

How much of your practice’s production can you actually count on as collectible revenue? The gap between gross production and net production can obscure profitability, distort financial decisions, and lead dentists to work harder without improving cash flow. In this episode, Kirk Behrendt and Metric Monday co-host and ACT Dental coach Miranda Beeson explain how gross production reflects clinical activity while net production reflects the financial reality of the practice. You will learn how to calculate your adjustment percentage, identify where production is being reduced, and use accurate data to make better decisions about providers, operatories, insurance participation, and growth—listen to Episode 1078 of The Best Practices Show!Main Takeaways:Gross production reflects the services and clinical activity completed by the team.Net production represents the amount the practice can potentially collect after adjustments.Practices must bill their full fees to accurately measure gross production and adjustment activity.Decisions about adding providers, operatories, patients, or locations should not be based on gross production alone.Adjustment categories should be specific enough to distinguish PPO adjustments, membership plan adjustments, professional courtesies, and other discounts.The adjustment percentage is calculated by dividing total adjustments by gross production.Reviewing gross production, adjustments, and net production together provides a clearer picture of profitability and collectible revenue.Episode Chapters:00:00 Intro02:13 Gross production and net production explained04:07 Why the gap between the two metrics matters.05:45 How gross production can lead to poor growth decisions.08:14 Reframing write-offs as discounts.11:36 How practices use both metrics correctly.14:08 Working smarter vs working harder15:51 How to calculate and evaluate the adjustment percentage.18:57 Improving adjustment tracking and reporting.19:53 Wrap upGuest Bio:Miranda Beeson has over 25 years of clinical dental hygiene, front office, practice administration, and speaking experience. She is enthusiastic about communication and loves helping others find the power that words can bring to their patient interactions and practice dynamics. As a Lead Practice Coach, she is driven to create opportunities to find value in experiences and cultivate new approaches.Miranda graduated from Old Dominion University, and enjoys spending time with her husband, Chuck, and her children, Trent, Mallory, and Cassidy. Family time is the best time, and is often spent on a golf course, a volleyball court, or spending the day boating at the beach.More Helpful Links for a Better Practice & a Better Life:Contact Gina to learn more about ACT: [email protected] Best Practices Show: https://www.actdental.com/podcast/Smile Source Community Hub: https://www.actdental.com/community-hubUpcoming Events & Workshops: https://www.actdental.com/events/Smile Source: https://www.smilesource.com/Subscribe on Apple Podcasts: https://podcasts.apple.comSubscribe on Spotify: https://open.spotify.com