Gross vs. Net Production: Which Should You Track?
One of the most common questions we get is: “Should I track my practice’s progress using Gross Production or Net Production?”
It’s a great question — and the answer is: It depends on what you want to measure!
That said, Dental Intelligence recommends tracking your progress using Gross Production.
It’s the clearest, most consistent way to evaluate performance across your team.
Let’s break down the differences so you can decide what’s best for your practice.
What Is Gross Production?
Gross Production is the total value of all procedures your team has completed — before any discounts, write-offs, or insurance adjustments. In other words, it’s what you produced, not what you collected.
Why we recommend it:
You have full control over your gross production — it’s a true reflection of the work your team performs.
It provides a level playing field for comparing providers, since it doesn’t depend on insurance payments or adjustment timing.
When you focus on Gross Production, you’re measuring your team’s output — the part you can directly influence.
What Is Net Production?
Net Production is your Gross Production minus any adjustments, such as write-offs, discounts, or insurance reductions. While this can give you a more accurate picture of what you’ll ultimately collect, there are several ways to calculate Net Production — and each has pros and cons.
The three most common methods are:
Net Production by Adjustment Date
Net Production by Procedure Date
Net Production (90-Day Average)
Let’s take a closer look at each.
Net Production – Adjustment Date
How it works: Adjustments are counted on the date they’re made.
Pros: Gives a timely picture of current-period Net Production.
Cons: If adjustments are made outside the original production period, your numbers can be understated or overstated for that timeframe.
Net Production – Procedure Date
How it works: Adjustments are tied to the date of the procedure instead of the date the adjustment was entered.
Pros: Offers the most accurate reflection of collectible production from past periods.
Cons:
Accuracy depends on every adjustment being correctly linked to its procedure.
It can take months to get a truly accurate number since all insurance claims must be processed and finalized first.
If claims are still pending, Net Production will likely change once adjustments are finalized.
Net Production – 90-Day Average
How it works: This method uses a rolling 90-day average to estimate Net Production.
Formula Example:
90-Day Gross Production: $300,000
90-Day Adjustments: $25,000
Current Period’s Production: $100,000
Calculation:
(25,000 ÷ 300,000) × 100,000 = $8,333.33 average adjustment
Net Production = $91,666.67 ($100,000 - $8,333.33)
Pros:
Provides a consistent, real-time estimate of Net Production.
Usually stays within 2.5% accuracy of actual Net Production.
Doesn’t require adjustments to be tied to specific procedures or timeframes.
Cons: It’s still an estimate — large adjustments can temporarily throw off the average.
Bottom Line
If you want a simple, consistent way to track your team’s performance, use Gross Production. It focuses on what you can control — the work completed in your practice — and keeps your progress easy to measure.
Once you’re comfortable tracking production, explore Net Production methods if you need deeper insight into collections or insurance performance.