This is my first job as a dentist in United States. I have just started working for a private dental practice that offers 40% of collection. However after the first month all the details I received shows on a production of $30000 for the month, the collection was only $10000. And my take home salary being paltry $4000. To me this appears like a collection rate of 30%. The practice owner claims that they have 99% collection rate. All the procedures that required pre approval from insurance were pre approved. When I looked through the numbers it seems the production numbers for each procedure were way more than the collection numbers. The practice accepts PPO, HMO and medicaid. For some of the procedures which were reported as $1000 on the production number, the collection was only $125. This seems really odd to me. So I have the following question:
(a) Is this common that the true collection amount would be only 30% of production amount, even though for every procedure the clinic got some money.
(b) This indicates that to make a $10000 paycheck per month my production per month should be $80000 per month or ($960000 per year production for a $120000 per year paycheck). Is this normal?
(a) Is this common that the true collection amount would be only 30% of production amount, even though for every procedure the clinic got some money.
(b) This indicates that to make a $10000 paycheck per month my production per month should be $80000 per month or ($960000 per year production for a $120000 per year paycheck). Is this normal?