Books closed by the 10th. Every month. Here's exactly what that looks like.
| Aug 26 | Jul 26 | Aug 25 | TTM Avg | Benchmark | Insights | |
|---|---|---|---|---|---|---|
| Net Production | $310,000 | $295,000 | $270,000 | $291,500 | ||
| Collection Ratio | 91% | 93% | 96% | 94% | 98-100% | Three months of slide, 95 to 93 to 91, and AR over 90 days went from 9% a year ago to 18% today. Those two numbers are the same story. Claims are aging out, which is not the same thing as a front desk that stopped asking, and the fix is different. At 91% you are carrying about $24,800 a month of work you have already done, close to $300,000 a year. I would pull every claim over 60 days and work the denials first. |
| AR >90 Days % | 18% | 15% | 9% | 13% | <10% of total AR | Nearly a fifth of what you are owed is more than 90 days old, against a 10% ceiling, and it was 9% a year ago. This is where the collection ratio went. |
| Lab Cost % | 6% | 5% | 6% | 6% | 5-7% | |
| Supply Cost % | 7% | 7% | 7% | 7% | 5-7% | |
| Clinical Cost % | 13% | 12% | 13% | 13% | 10-14% | |
| Staffing % | 25% | 27% | 28% | 26% | 25-30% | |
| Hygiene Labor % | 10% | 10% | 10% | 10% | 8-10% | |
| Hygiene Production % | 29% | 28% | 31% | 29% | 30-40% | Second month in a row under the benchmark, and I want to be clear about what this is and what it isn't. Your hygienists produce $3.26 for every dollar of pay, inside the healthy range, so this is not a compensation problem and I wouldn't touch pay. What it is is open chair time. You are about $3,100 of production short of 30%, which is less than a single hygiene day. I'd start with recall. |
| Hygiene Productivity Ratio | 3.26 | 3.15 | 3.48 | 3.26 | 3.0-3.5x | Hygienists produced $3.26 for every $1 of hygiene pay. Healthy range is 3.0 to 3.5. |
| Associate Cost % | 10% | 11% | 12% | 11% | ||
| Occupancy % | 5% | 5% | 6% | 5% | ||
| Marketing Spend % | 3% | 5% | 4% | 4% | ||
| Total Overhead % | 64% | 67% | 70% | 67% | 55-65% | |
| Owner Comp % | 3% | 3% | 3% | 3% | ||
| Owner Discretionary % | 2% | 1% | 1% | 1% | ||
| EBITDA | $111,600 | $97,350 | $81,000 | $95,368 | ||
| EBITDA % | 36% | 33% | 30% | 33% |
| Description | |
|---|---|
| Net Production | Gross production minus PPO contractual write-offs - the denominator for every KPI below except AR >90 Days % |
| Collection Ratio | How much of what you produce you actually collect - your billing efficiency score |
| AR >90 Days % | The share of everything you are owed that has been outstanding more than 90 days. The one metric here measured against your AR balance rather than production. Read it next to Collection Ratio: a falling ratio with rising 90-day AR is a claims problem, not a collections-effort problem. |
| Lab Cost % | Outside lab fees (crowns, Invisalign, dentures) as a share of production |
| Supply Cost % | Clinical consumables (gloves, composites, anesthetic) as a share of production |
| Clinical Cost % | Total chair-side cost of materials - lab plus supplies combined |
| Staffing % | All non-owner, non-associate staff wages and benefits relative to production |
| Hygiene Labor % | Hygienist wages and benefits only, fully loaded - a sub-slice of total staffing |
| Hygiene Production % | Hygiene's share of total practice production - flags under-scheduled hygiene |
| Hygiene Productivity Ratio | Hygiene production divided by hygiene gross pay - how many dollars the department produces for every dollar it is paid. Gross pay, not loaded cost, which is why this does not equal Hygiene Production % divided by Hygiene Labor %. Read it next to Hygiene Production %: a low share with a healthy multiple is a scheduling problem, not a pay problem. The healthy range is 3.0 to 3.5. |
| Associate Cost % | Associate doctor compensation - varies by production-split arrangement |
| Occupancy % | Base rent, CAM charges, and property insurance as a share of production. Tracked, not benchmarked: nobody credible publishes an occupancy benchmark against production, and this ratio moves mostly because production moves. |
| Marketing Spend % | Total marketing and patient acquisition spend relative to production. Tracked, not benchmarked, because the right number depends entirely on how you acquire patients. |
| Total Overhead % | All operating costs (including COGS) except owner comp and discretionary |
| Owner Comp % | Owner salary and guaranteed payments - added back to EBITDA, not benchmarked |
| Owner Discretionary % | Personal expenses run through the practice - added back to normalize EBITDA |
| EBITDA | What the practice earned after every operating cost, with your own salary and discretionary spending added back. This is what the business generated for you this month, before tax. |
| EBITDA % | The same figure as a share of net production. Tracked, not benchmarked: the published ranges assume a market-rate clinical wage for the owner is deducted first, and this figure does not do that. Ask us what the adjusted number looks like. |
| Owner Wealth Created | Total economic value flowing to the owner each month: comp + benefits + distributions + principal paid down. Captures P&L and balance sheet activity that standard EBITDA misses. |
This is what monthly reporting looks like when your books close by the 10th.
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