Glossary
The language of the business of dentistry.
Every term a practice owner runs into, defined in one sentence and explained in a paragraph, with the article and the calculator that use it.
109 terms
The numbers
35- Accounts receivableMoney owed to the practice (by insurance or patients) for work already completed but not yet collected.
- Active patientA patient who has been seen within the practice's own recall window, typically the last 18 to 24 months.
- Adjusted productionProduction after contractual insurance write-offs are subtracted, before any patient discount or unpaid balance.
- AR agingA report that sorts outstanding balances by how long they've been owed (30, 60, 90-plus days) to show where to collect first.
- Break-evenThe production a practice must hit in a day, week or month to cover its costs before a dollar of profit is made.
- Cancellation rateThe percentage of scheduled appointments a patient cancels or reschedules, whether or not the slot gets refilled.
- Case acceptance rateThe percentage of recommended treatment, by dollar value, that patients actually agree to schedule and complete.
- Cash flowThe actual movement of money in and out of the practice's bank account: separate from what the P&L reports as profit.
- CollectionsThe cash a practice actually deposits in a period, after insurance write-offs, discounts and unpaid balances.
- Collections ratioCollections divided by production, expressed as a percentage: the single cleanest read on a practice's billing health.
- Contribution marginThe share of each production dollar left to cover fixed costs after variable costs (supplies, lab, doctor pay) come out.
- Days in ARThe average number of days it takes a practice to collect what it is owed: a speed measure, not just a size measure.
- Doctor compensationWhat a dentist is paid for clinical production: a percentage for associates, or the owner's draw from profit.
- EBITDAEarnings before interest, taxes, depreciation and amortization: the profit figure buyers use to value a practice.
- Fixed costsExpenses a practice pays whether or not a single patient walks in the door: rent, salaried wages, loans, insurance.
- Hygiene productionThe share of total production generated by the hygiene department: cleanings, perio maintenance and hygiene exams.
- KPIKey performance indicator: a specific number tracked regularly to show whether a part of the practice is on target.
- Lab fee percentageOutside lab costs as a percentage of collections, often the single most negotiable line in a practice's overhead.
- Lifetime patient valueThe total production or profit a practice can expect from one patient over the full length of the relationship.
- Net incomeWhat is left after every expense, including doctor compensation, is subtracted from collections: the true bottom line.
- New patient countThe number of new patients a practice brings in per month: the clearest single measure of practice growth.
- No-show rateThe percentage of scheduled appointments where the patient never shows up and never calls: pure lost production.
- Overhead percentageTotal practice expenses, excluding doctor pay, as a percentage of collections: the core measure of practice profitability.
- Patient attritionThe rate at which existing patients stop returning to the practice, whether they leave a plan or simply drift away.
- Patient reactivationThe deliberate effort to bring inactive patients (overdue for a visit) back onto the schedule.
- Payroll percentageStaff wages and payroll taxes, excluding doctor pay, as a percentage of collections, usually the largest overhead line.
- ProductionThe dollar value of dentistry performed at your full fee, before any insurance write-off, discount or unpaid balance.
- Production per hourTotal production divided by clinical hours worked: the rate at which the schedule is actually generating revenue.
- Production per visitTotal production divided by the number of patient visits: the average dollar value of a single appointment.
- Profit and loss statementThe financial report listing revenue, expenses and the resulting profit or loss for a period: a practice's report card.
- Profit per hourProduction per clinical hour minus the break-even cost of that hour: the number that separates busy from profitable.
- Reappointment rateThe percentage of hygiene patients who are rebooked for their next cleaning before they leave the office.
- Supplies percentageDental supply spending as a percentage of collections: one of the six overhead lines the healthy-range benchmarks track.
- Variable costsCosts that rise and fall with production: supplies, lab fees and any pay tied to a percentage of what is produced.
- Working capitalThe cash and short-term assets a practice keeps on hand to cover its bills before more revenue arrives.
Insurance & PPOs
28- Allowed amountThe maximum a plan will pay for a procedure: the number a dentist is contractually required to write off the rest against.
- Alternate benefit (downgrade)A plan provision letting an insurer pay for a less expensive procedure than the one actually performed.
- Annual maximumThe most a dental plan will pay toward a patient's care in a benefit year, after which the patient pays the full remainder.
- Assignment of benefitsA patient's authorization letting the insurer pay the dentist directly, instead of reimbursing the patient.
- Balance billingBilling a patient for the gap between a dentist's fee and an insurance plan's allowed amount: restricted for in-network care.
- CAQHA shared online database where a dentist's credentials are stored once and accessed by many insurance plans for enrollment.
- Claim appealA formal request asking an insurer to reconsider a denied or underpaid claim, usually with added documentation.
- Claim denialAn insurer's refusal to pay a submitted claim, for reasons ranging from a paperwork error to a genuine coverage exclusion.
- Coordination of benefitsThe rules determining which insurance plan pays first when a patient is covered by more than one dental plan.
- CredentialingThe process of verifying a dentist's qualifications and enrolling them with an insurance plan before claims can be paid.
- DeductibleThe amount a patient must pay out of pocket before their dental plan begins paying its share of covered treatment.
- DHMODental Health Maintenance Organization: a plan paying a fixed monthly fee per enrolled patient rather than a fee per procedure.
- Discount planA dental plan, often third-party, where members pay a fee for access to reduced rates rather than reimbursed coverage.
- Explanation of benefits (EOB)The insurer's statement showing what was billed, what it paid, and what the patient or write-off covers the rest.
- Fee scheduleThe list of allowed amounts a specific insurance plan pays for each procedure code, negotiated or set by the insurer.
- Fee-for-serviceA payment model where the patient or their insurance pays the dentist's actual fee, with no negotiated discount.
- Frequency limitationA plan rule capping how often it will pay for a given procedure: cleanings twice a year, X-rays every few years, and so on.
- In-networkA dentist who has signed a contract with a specific insurance plan to accept its fee schedule for its members.
- Leased network (umbrella network)A PPO that rents its provider list to other insurers, so a dentist can be in-network with plans they never signed.
- Membership planAn in-house dental savings plan, sold directly to uninsured patients for a flat annual or monthly fee, no insurer involved.
- Network leasingThe practice of a PPO renting its dentist network to other insurers, extending one contract's fee schedule to many payers.
- NPINational Provider Identifier: a unique ten-digit number every dentist and practice needs to bill any insurance plan.
- Out-of-networkA dentist with no contract with a given plan, free to charge full fee: the patient's plan may still pay a partial benefit.
- PPOPreferred Provider Organization: an insurance plan where a dentist agrees to a discounted fee schedule for in-network volume.
- PredeterminationA request sent to a plan before treatment, asking what it will actually pay: an estimate, not a payment guarantee.
- RecredentialingThe periodic re-verification insurance plans require to keep a dentist's in-network status active, usually every few years.
- UCRUsual, customary and reasonable: a benchmark fee insurers reference, distinct from a plan's actual allowed amount.
- Write-offThe gap between a dentist's full fee and the amount a contracted insurance plan actually allows: money not collected.
Operations
12- Block schedulingReserving specific chair-time blocks for specific procedure types, so the day's highest-value work has protected room.
- Financial arrangementsThe agreed plan for how a patient will pay for treatment (insurance estimate, payment plan, or fee) set before work begins.
- Hygiene departmentThe part of the practice devoted to preventive care (cleanings, perio maintenance and exams) run as its own profit center.
- Morning huddleA short daily team meeting to review the schedule for opportunity and set a production goal before the day starts.
- Open timeUnbooked, available slots on the schedule: a resource to actively fill, not just a gap waiting to be noticed.
- Perio maintenanceThe ongoing, more frequent hygiene visit for patients previously treated for periodontal disease.
- Recare (recall)The system that tracks when hygiene patients are due for their next visit and gets them back onto the schedule.
- Regional managerA leader overseeing multiple practice locations, taking the administrative burden off an owner scaling past a few offices.
- Same-day dentistryDiagnosing and treating a patient's needed procedure in the same visit, using open time and same-visit technology.
- Standard operating procedureA written, step-by-step description of how a specific task in the practice should be done, every time, by anyone doing it.
- Treatment plan presentationThe conversation where recommended treatment, its rationale and its cost are explained to a patient for a decision.
- Two-tier service modelOffering a basic, insurance-level option alongside a premium option for the same procedure, so patients choose the tier.
Buying & selling
18- Active patient countThe number of genuinely recent patients in a practice being sold: a due diligence check against a stale patient list.
- Add-backsPersonal or one-time expenses removed from a practice's P&L to reveal its true, ongoing earnings before a sale.
- Asset purchase vs. stock purchaseThe two legal structures for buying a practice. Its assets alone, or the entire company that owns them, liabilities included.
- Debt-to-collections ratioTotal practice debt divided by annual collections: a quick check on whether an acquisition's financing is sustainable.
- DSODental Support Organization: a company that owns or backs multiple dental practices, providing shared administrative support.
- Due diligenceThe full investigation of a practice's finances, contracts, patients and operations before a purchase is finalized.
- EBITDA multipleThe factor applied to adjusted EBITDA to estimate a practice's value: commonly 3.5 to 5.5 times for a general practice.
- GoodwillThe intangible value of a practice beyond its physical assets. Its reputation, patient relationships and referral base.
- Letter of intentA non-binding document outlining the proposed price and terms of a practice sale before formal contracts are drafted.
- Non-competeA contract clause restricting a seller (or departing associate) from practicing within a set distance and time after leaving.
- Percentage-of-collections methodA valuation method pricing a practice as a share of its trailing annual collections, typically 60 to 75 percent.
- Practice brokerAn intermediary who represents a seller (or sometimes a buyer) in marketing, negotiating and closing a practice sale.
- Practice valuationAn estimate of what a dental practice is worth, built from its earnings and collections rather than a seller's asking price.
- Purchase price allocationHow a deal's total price is divided among assets for tax purposes: equipment, goodwill, non-compete and more.
- Quality of earningsA deeper financial review testing whether reported earnings are real, recurring and likely to survive the transition.
- Seller financingA deal structure where the seller loans the buyer part of the purchase price, repaid over time instead of paid at closing.
- Seller's discretionary earningsA profit measure adding the owner's total compensation and add-backs to EBITDA: the full financial benefit of ownership.
- Transition periodThe stretch after a sale closes when the seller stays involved to introduce patients and hand off relationships to the buyer.
Team
7- A-playerA team member who performs at a consistently high level and needs little direct oversight to do their job well.
- Associate compensationThe formula that determines an associate dentist's pay, typically a percentage of their own production or collections.
- Associate dentistA dentist employed by a practice, typically paid a percentage of production or collections, without ownership stake.
- Daily guaranteeA minimum daily pay floor for an associate, protecting their income while their production is still ramping up.
- Office managerThe team member responsible for day-to-day practice operations, freeing the owner from most administrative management.
- Production bonusAn additional payment tied to hitting a specific production or collections target, on top of base pay or percentage.
- Staff bonus systemA structured, varied approach to team incentives: designed to avoid the entitlement trap of a static monthly bonus.
Clinical & research
9- Annual failure rateThe average percentage of a given restoration or treatment that fails each year, used to compare materials and techniques.
- Bulk-fill compositeA composite resin engineered to be placed in one thick layer, instead of the traditional thin, incremental layers.
- Evidence gradeA rating (strong, moderate or limited) describing how much confidence the current research supports for a claim.
- FerruleA band of intact tooth structure a crown grips onto above the gumline: the structural key to a crown's long-term survival.
- Randomized controlled trialA study that randomly assigns patients to a treatment or a comparison group, the strongest design for testing cause and effect.
- Selective caries removalDeliberately leaving some softened, bacteria-affected dentin near the pulp, rather than excavating a deep cavity completely.
- Silver diamine fluorideA liquid applied to active decay that arrests its progress, permanently darkening the treated area in the process.
- Split-mouth designA trial design placing two different treatments in the same patient's mouth, so each patient is their own comparison.
- Systematic reviewA study that gathers and combines every relevant trial on a question, using an explicit method, rather than a single trial.
The Dental Grind
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