What gets measured gets managed. Yet most dental practices only track production and collections—missing the metrics that actually drive profitability. Here are the 7 financial KPIs that separate thriving practices from struggling ones, along with benchmarks and improvement strategies.
Why Financial Metrics Matter
Running a dental practice without financial metrics is like performing dentistry without X-rays—you're working blind. The right metrics provide:
- Early warning signs: Catch problems before they become crises
- Decision support: Data-driven choices, not gut feelings
- Goal tracking: Measure progress toward objectives
- Benchmarking: Know where you stand vs. peers
1. Daily/Monthly Production
What It Measures
Total value of services rendered, before adjustments or collections. This is your "top line" metric.
How to Calculate
Production = Sum of all procedure fees at full UCR
Benchmarks
- Solo GP: $600K-$900K annually ($50K-$75K monthly)
- GP with hygienist: $900K-$1.5M annually
- Specialist: Varies widely by specialty
What Affects It
- Number of patient visits
- Fee schedule
- Treatment mix (high-value procedures)
- Case acceptance
2. Collections Rate
What It Measures
Percentage of adjusted production actually collected. This is where money meets the bank account.
How to Calculate
Collections Rate = Collections / Adjusted Production × 100
Adjusted Production = Production - Insurance Write-offs - Courtesy Adjustments
Benchmarks
- Target: 98%+ of adjusted production
- Average: 91-95%
- Red flag: Below 90%
Improvement Strategies
- Same-day patient payment collection
- Credit card on file programs
- Insurance verification before appointments
- Aggressive AR follow-up
3. Overhead Percentage
What It Measures
What percentage of collections goes to operating the practice (not profit/owner compensation).
How to Calculate
Overhead % = (Total Expenses - Doctor Compensation) / Collections × 100
Benchmarks
| Category | Target % | Red Flag % |
|---|---|---|
| Total Overhead | 55-65% | >70% |
| Staff costs | 25-30% | >35% |
| Lab costs | 8-10% | >12% |
| Supplies | 5-7% | >9% |
| Facility | 5-8% | >10% |
| Marketing | 3-7% | >10% |
4. Production Per Clinical Hour
What It Measures
Revenue generated for each hour the dentist is chairside. This is your efficiency metric.
How to Calculate
Production Per Hour = Total Production / Clinical Hours Worked
Benchmarks
- GP: $400-$600/hour
- Specialist: $800-$1,500/hour
- Top performers: 2x the averages
Improvement Strategies
- Improved scheduling (minimize gaps)
- Efficient handoffs with assistants
- Higher-value treatment mix
- Same-day dentistry capabilities
5. New Patient Value
What It Measures
Average production from a new patient in their first 12 months. Critical for marketing ROI.
How to Calculate
New Patient Value = Total Production from NPs / Number of New Patients
Benchmarks
- Average: $800-$1,200 first-year value
- Strong practices: $1,500-$2,500 first-year value
Why It Matters
If your new patient value is $1,000, and you spend $300 to acquire them, that's a 3.3x return. This justifies (or questions) your marketing spend.
6. Case Acceptance Rate
What It Measures
Percentage of recommended treatment that patients accept and complete.
How to Calculate
Case Acceptance = Accepted Treatment Value / Presented Treatment Value × 100
Benchmarks
- Average: 40-50%
- Good: 60-70%
- Excellent: 80%+
Improvement Strategies
- Intraoral cameras for patient education
- Flexible payment options
- Same-day treatment when possible
- Follow-up on unscheduled treatment
7. Hygiene Production Per Visit
What It Measures
Average production per hygiene appointment (not including doctor production).
How to Calculate
Hygiene Production = Total Hygiene Production / Hygiene Visits
Benchmarks
- Prophy only: $150-$200
- With perio maintenance: $200-$300
- Full-service hygiene: $300-$400
Why It Matters
Hygiene should be profitable on its own—not just a lead generator for doctor production. Strong hygiene departments contribute 25-35% of total practice production.
The Bottom Line
Most practices only track production and collections. Adding these 7 metrics provides a complete picture of financial health—and identifies exactly where to focus improvement efforts.
Key Takeaways:
- Collections rate should be 98%+ of adjusted production
- Total overhead should be 55-65% of collections
- Production per clinical hour: $400-$600 for GPs
- New patient value justifies (or questions) marketing spend
- Case acceptance separates average from excellent practices
