Collections

Definition

The cash actually received for the dentistry produced, after insurance write-offs and adjustments.

Why It Matters

It is the number a dentist-to-dentist price is quoted on, which is why the guide's rule of thumb is a share of annual collections and not of production, and it is the first figure a practice lender asks for. Ask for collections by month and by payer for three years and set them against production. The gap is insurance write-offs, uncollected patient balances, or both, and a spread that widens toward the sale is a finding about the front desk as much as the payer mix.