Collection Rate
What it is, how to calculate it, and what a healthy number looks like.
Collection rate is the percentage of your net production that you actually collect. It's arguably the single most important financial metric in your practice.
How to calculate it
Total collections ÷ net production × 100. That's it. If you produced $100k and collected $95k, your collection rate is 95%.
What's a good number?
Most healthy practices sit between 95% and 98%. If you're below 93%, something is off. either your billing process is slow, your insurance follow-up is lagging, or you're writing off too much.
Above 98% is possible but rare. It usually means you're collecting on old AR that inflates the current month.
Why it matters
You can produce all day long, but if you're not collecting, you're working for free. A practice producing $1.5M with a 90% collection rate is leaving $150k on the table every year. That's not a small number.
How to track it
Most practice management systems can generate a production vs. collections report. The problem is pulling it consistently and comparing it over time. Denta calculates this automatically from your PMS data. no exports, no spreadsheets.
Jack Beecher
Founder & CEO at Denta
Track this metric automatically
Denta calculates your KPIs from your PMS data — no spreadsheets, no manual reports.
Book a Call