Hi
I am reviewing a contract from one of the offices I looked into. Their compensation seems a little different to me. I want a second opinion on this one. The big picture is % of adjusted production and then it defines adjusted production as the following:
“Adjusted Production” means, with respect to an applicable period, the difference of (a) patient fees directly generated during such period by the provision of dental services personally performed by Dentist on behalf of Practice, including those fees directly related to laboratory services provided that such laboratory services are ordered through an Approved Laboratory, but excluding any fees for x-ray, films and photographs minus (b) any contractual allowances, bad debt expenses or write-offs, financing fees, and adjustments in connection with dental services personally performed by Dentist on behalf of Practice, in each case as reasonably determined by Practice. For purposes of this contract, adjusted production excluding the x-rays shall be set 85 percent of Gross production.
So in short, adjusted production = 85% of gross production.
I always thought of gross production as straight production based on office fee schedule regardless of which insurance patient has. I talked to the office, they told me the gross production is based on the patient's insurance fee schedule.
According to the office, if the Delta Dental's fee schedule on crown is $800 when the office fee is $1000, the gross production on this patient is $800. The adjusted production would be $800 * 0.85 = $680 and I am taking 30% of that.
This pretty much sounds like 15% off of the adjusted production to me, hence 25.5% (0.85*0.30=0.255) of adjusted production in reality. Am I not understanding this correctly? I would appreciate your advice!
I am reviewing a contract from one of the offices I looked into. Their compensation seems a little different to me. I want a second opinion on this one. The big picture is % of adjusted production and then it defines adjusted production as the following:
“Adjusted Production” means, with respect to an applicable period, the difference of (a) patient fees directly generated during such period by the provision of dental services personally performed by Dentist on behalf of Practice, including those fees directly related to laboratory services provided that such laboratory services are ordered through an Approved Laboratory, but excluding any fees for x-ray, films and photographs minus (b) any contractual allowances, bad debt expenses or write-offs, financing fees, and adjustments in connection with dental services personally performed by Dentist on behalf of Practice, in each case as reasonably determined by Practice. For purposes of this contract, adjusted production excluding the x-rays shall be set 85 percent of Gross production.
So in short, adjusted production = 85% of gross production.
I always thought of gross production as straight production based on office fee schedule regardless of which insurance patient has. I talked to the office, they told me the gross production is based on the patient's insurance fee schedule.
According to the office, if the Delta Dental's fee schedule on crown is $800 when the office fee is $1000, the gross production on this patient is $800. The adjusted production would be $800 * 0.85 = $680 and I am taking 30% of that.
This pretty much sounds like 15% off of the adjusted production to me, hence 25.5% (0.85*0.30=0.255) of adjusted production in reality. Am I not understanding this correctly? I would appreciate your advice!
