Quick answer: The key dental practice KPIs are total overhead as a percentage of collections, the collections ratio, receivables over 90 days, production per hour, new patients per month and profit margin. Total overhead commonly runs about 60 to 65% of collections, and each category should be measured against collections, not production.
A busy schedule does not always mean a profitable practice. A handful of key numbers, reviewed every month, show where money is being made and where it is slipping away. Here are the ones that matter most.
Overhead as a percentage of collections
Dental overhead is everything it costs to run the practice before the owner is paid. Measure each category against collections, not production. These are ranges commonly cited by dental consultants, not hard rules. Your specialty, location and size will shift them.
| Category | Common range (% of collections) |
|---|---|
| Total overhead | About 60 to 65% |
| Staff wages and benefits | About 24 to 28% |
| Lab fees | About 8 to 10% |
| Dental supplies | About 5 to 6% |
| Rent and facility | About 5 to 7% |
| Marketing | About 3 to 5% |
Rent and staff costs in Northern Virginia often run at the high end of these ranges, which makes it even more important to watch the other categories closely.
Key performance indicators to review monthly
Collections ratio
Collections divided by production after insurance adjustments. A low ratio means money you earned is not reaching the bank.
Accounts receivable over 90 days
Old balances rarely get easier to collect. Track the share of receivables older than 90 days and work it down every month.
Production per hour
Production divided by provider hours, for dentists and hygienists separately. It shows how well the schedule is used.
New patients per month
The pipeline for future production. A steady decline is an early warning sign.
Profit margin
What is left after all expenses, before owner pay. It is the clearest single measure of practice health.
Where these numbers come from
Production, adjustments and receivables come from your practice management software. Expenses and collections come from your books. You need both to be accurate, which is why clean dental bookkeeping comes first.
Turning numbers into action
- If staff costs are high, review scheduling and production per hour before cutting pay
- If lab fees are high, compare lab pricing and remake rates
- If the collections ratio is falling, check insurance follow up and patient payment policies
- If overhead is rising, review it line by line against the prior year
Dental KPI FAQs
What is a good collections ratio for a dental practice?
Many dental consultants aim for 98% or more of net production, meaning production after insurance adjustments. A ratio well below that usually points to billing or follow up problems.
What is the difference between production and collections?
Production is the value of the dentistry you performed and billed. Collections is the money that actually reaches the bank after insurance adjustments and unpaid balances.
How much of receivables should be over 90 days?
Lower is better. Many practices aim to keep balances over 90 days to a small share of total receivables, often cited as under about 10 to 15%.
How often should I review dental practice KPIs?
Monthly, after your books are closed. Looking at trends over several months tells you more than any single month.
Why is my overhead higher than the benchmarks?
Location, specialty and practice size all shift overhead. In Northern Virginia, rent and staff costs often run high, so compare each category to your own prior year as well as to industry ranges.
See your numbers every month
We prepare monthly reports with each category shown as a percentage of collections, so you can spot problems early. Learn more about our dental practice accounting service.
This article is general information and not tax advice for your situation. Tax rules change, so talk with a qualified professional before making decisions.
