SGA Internal · Six Shooters + Karen + Myles · May 5, 2026

Production Numbers Getting on the same page.

Four numbers. One vocabulary. Aligned by the end of this meeting.

SGA Dental Partners · Scott Guest
Working Session · 9:30 AM
01 · The Problem
Same word. Different meaning.

Two companies. Two budgets. Two definitions of the same word.

SGA West (Gen4)
Budgets on
Production
What the office walked patients out at.
Visible in the DPMS every day.
vs.
SGA East
Budgets on
Net Production
Production after contractual adjustments.
Calculated in PowerBI, not visible at the office.
Different words. Same network.
Until we share vocabulary, every cross-entity rollup is built on numbers that look the same but aren't.
SGA · Production Terminology
02 / 08
02 · The Four-Number Hierarchy
The waterfall · UCR ceiling down to revenue

Four numbers, stacked.

The gap between each one is what we usually argue about. Both gaps have a name.

Gross ProductionUCR Ceiling
UCR FEE × PROCEDURE VOLUME
100%Theoretical Max
Posting behavior
↓ if office posts at insurance fee
ProductionAs Posted at WalkoutSGA West Budget
CHARGES ON THE PATIENT LEDGER
~88%DPMS Visible
Less contractual adjustments
↓ insurance write-offs finalize
Net ProductionAfter AdjustmentsSGA East Budget
PRODUCTION − CONTRACTUAL ADJUSTMENTS
~76%PowerBI Calc
Less bad debt
↓ uncollectible balances
RevenueCash Recognized
WHAT THE BUSINESS ACTUALLY EARNS
~72%Finance / GL
SGA West budgets here
Production
DPMS-visible. Mix of UCR and insurance fees by office.
SGA East budgets here
Net Production
After adjustments. Closer to revenue. Not visible at office.
The two gaps
Production → Net = contractual adjustments
Net → Revenue = bad debt
SGA · Production Terminology
03 / 08
03 · Terminology Crosswalk
A shared vocabulary · same word, same meaning, network-wide

If we can't agree on the words, we can't agree on the numbers.

Concept SGA West Calls It SGA East Calls It Proposed Unified Term
UCR-based ceiling — Doesn't Exist Gross Production Calculated Gross Production
Charges as posted at walkout Production Mixed No standalone term Production
After contractual adjustments No equivalent No equiv. Net / Adjusted Production Net Production
After bad debt — what the GL sees Revenue Revenue Revenue
Future / scheduled production Mix by office Variable Mix by office Variable Scheduled Production
SGA · Production Terminology
04 / 08
04 · The Recommendation
What we should show, everywhere

Show all four numbers. Honor both budgets through 2026.

Step 01 · Calculated
Gross Production
UCR Fee × Procedure Volume
Used ForDiagnostic ratios. Adjustment %. Payer-mix analysis.
Step 02 · As Posted
Production
Charges Posted on Ledger
SGA West Budget
What offices see in the DPMS daily.
Step 03 · After Adjustments
Net Production
Production − Contractual Adjustments
SGA East Budget
Closest to revenue. Settles over time.
Step 04 · Cash
Revenue
Net Production − Bad Debt
Used ForEBITDA. Investor reports. CFO numbers.
Through 2026
Each entity keeps its native budget. West = Production. East = Net Production. No mid-year goalpost moves.
Starting 2027
One unified budget basis network-wide. The Production-vs-Net decision happens in a Q3 working session.
SGA · Production Terminology
05 / 08
05 · The Office-Level Truth
Why neither number is fully accurate

The real problem is how offices post — not which number we pick.

Office Type A · West-style
Posts at UCR fees
Patient walks out at the full UCR fee on every procedure.
Their "Production" looks gross-ish — closer to the UCR ceiling. Adjustments come later.
NETWORK "Production" a blend of both
Office Type B · East-style
Posts at insurance fee schedule
Patient walks out at the contracted insurance fee, not UCR.
Their "Production" looks net-ish — already discounted at posting time.
The takeaway
Both office types exist in both companies. The metric we choose can't fix the inconsistency — only standardizing how offices post can.
SGA · Production Terminology
06 / 08
06 · Accuracy Over Time
Different accuracy curves · same time horizon

West is consistent. East is most accurate looking backward.

SGA West · ProductionSame accuracy across all time periods.
Months Ago → Weeks Ago
~ Same Accuracy
Posted as charged. No adjustment process to wait on.
Last Week → Yesterday
~ Same Accuracy
Same approximation as last quarter.
Today → Future
~ Same Accuracy
Future scheduled is identical methodology.
Predictably inaccurate in the same way across all time periods — which means revenue conversion ratios stay stable.
SGA East · Net ProductionAccuracy varies depending on time horizon.
Months Ago → Weeks Ago
✓ Most Accurate
Adjustments are finalized.
Last Week → Yesterday
~ Less Accurate
Adjustments still landing.
Today → Future
⚠ Least Accurate
Mix of UCR and insurance-fee posting by office.
Law of large numbers: aggregated up to office → region → entity, adjustments balance the noise into a reliable run rate.
SGA · Production Terminology
07 / 08
07 · Decisions Today
Five questions · resolve them in this room

If we leave aligned on these, the rest is execution.

01
Adopt the four-tier vocabulary network-wide?
OwnerKaren + Myles · sign off today
02
Show all four numbers on every dashboard?
OwnerScott · build into reporting standard
03
Keep West on Production and East on Net through 2026?
OwnerSix Shooters · acknowledge no mid-year moves
04
Pick the 2027 unified budget basis in Q3?
OwnerKaren · schedule Q3 working session
05
Who owns the office-level posting standardization workstream?
OwnerRCM + Operations · scope by 5/15 — the metric choice doesn't fix posting behavior
SGA · Production Terminology
08 / 08
1/8