Collections ratio: what top practices hit

Collections ratio is the percentage of cases accepted that are actually paid (insurance plus patient portion).

Top practices hit 92-95% collections ratios. Average practices run 75-85%. Bad practices hit 65-75%. That gap directly impacts net revenue.

A practice running 600K annual production at 75% collection ratio nets 450K. The same practice running 95% collections on the same production netting 570K. That's 120K difference from collection efficiency alone.

Most practices blame insurance or patient credit for poor collections. That's backwards. Strong collections come from (1) proper credentialing and fee schedules (you're not leaving money on the table from undercoding), (2) upfront financial arrangements (patient knows cost before treatment, not surprised after), (3) follow-up on unpaid balances (many offices never call patients about outstanding balances).

Start here. Calculate your actual collections ratio for last quarter. Segment by payer type (insurance, self-pay, payment plan). Find your weak spots. Insurance not paying? Verify credentialing. Self-pay not paying? Your financial coordinator isn't doing the job.

Collections requires discipline and accountability. Someone owns it or it doesn't happen. Most practices have no collections owner. They just hope patients pay.