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
Gross Production
What the office walked patients out at.
Mix of gross-walkout & net-walkout offices.
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 / 11
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.

UCR ProductionUCR Ceiling
UCR FEE × PROCEDURE VOLUME
Posting behavior
Gross ProductionAs Posted at WalkoutSGA West Budget
CHARGES ON THE PATIENT LEDGER
Less contractual adjustments
Net ProductionAfter AdjustmentsSGA East Budget
PRODUCTION − CONTRACTUAL ADJUSTMENTS
Less bad debt
RevenueCash Recognized
WHAT THE BUSINESS ACTUALLY EARNS
SGA West budgets here today
Gross Production
DPMS-visible. Mix of gross-walkout & net-walkout offices.
SGA East budgets here
Net Production
After adjustments. Closer to revenue. Not visible at office.
The two gaps
Gross → Net = contractual adjustments
Net → Revenue = bad debt
SGA · Production Terminology
03 / 11
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 UCR Production
Charges as posted at walkout
(gross walkout & net walkout offices)		 Production Mixed No standalone term Gross Production
After contractual adjustments No equivalent No equiv. Net Production Net Production
After bad debt — what the GL sees Revenue Revenue Revenue
Future / scheduled production Scheduled Production Scheduled Production Scheduled Production
SGA · Production Terminology
04 / 11
04 · The Recommendation
What we should show, everywhere

Show all four numbers. Honor both budgets through 2026.

Step 01 · Calculated
UCR Production
UCR Fee × Procedure Volume
Used ForDiagnostic ratios. Adjustment %. Payer-mix analysis.
Step 02 · As Posted
Gross Production
Charges Posted on Ledger
(gross-walkout & net-walkout offices)
SGA West · OM Pacing
What office managers see in DPMS & pacing daily.
Step 03 · After Adjustments
Net Production
Gross Production − Contractual Adjustments
SGA East Budget · West Executive View
SGA East budgets here today. SGA West will mirror it in PBI.
Step 04 · Cash
Revenue
Net Production − Bad Debt
Used ForEBITDA. Investor reports. CFO numbers.
SGA West · OM Pacing
Gross Production budget stays in the pacing report — OMs see what they see today. Familiar, no retraining.
SGA West · Executive (NEW)
Net Production budget built in Power BI — used everywhere outside the OM pacing report. Mirrors East methodology.
2027 Target
Migrate all offices to one consistent budget methodology. Choice locked in Q3 working session.
SGA · Production Terminology
05 / 11
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 Gross Production looks closer to the UCR ceiling. Adjustments come later.
NETWORK "Gross 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 Gross Production already looks net-ish — 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 / 11
06 · Accuracy Over Time
Different accuracy curves · same time horizon

West is consistent. East is most accurate looking backward.

SGA West · Gross 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 / 11
07 · Decisions We Made
Coming out of this meeting · status today

Six decisions. Status as of today.

01
Adopt the four-tier vocabulary: UCR Production → Gross Production → Net Production → Revenue.
● Pending ApprovalNeed final sign-off — this is the new naming.
02
West keeps Gross Production budget. East keeps Net Production budget. No mid-year moves through 2026.
✓ AlignedBoth entities run their native budget through year-end.
03
Build a new Net Production budget in Power BI for SGA West executive / aggregate views.
⏳ In ProgressTracked as a separate project.
04
Replicate the West pacing dashboard for office managers — keep their familiar Gross Production view.
⏳ In ProgressTracked as a separate project.
05
Target 2027 to migrate all offices to one consistent budget methodology — choice locked in Q3 working session.
🗓 2027 TargetQ3 working session to pick the unified basis.
06
Stand up the office-level posting standardization workstream — also targeting 2027.
🗓 FutureRCM + Operations — metric choice doesn't fix posting behavior.
SGA · Production Terminology
08 / 11
Appendix A · 08 · Walkout Types & Adjustments
Appendix A · The full formula · Gross Production minus adjustments equals Revenue

Gross Production − Adjustments = Revenue.

Gross Walkout Office~50% of Gen 4 · also at SGA East
Net Walkout Office~50% of Gen 4 · most of SGA East
Gross Production
at walkout · charges posted to ledger
$1,200
UCR fee posted. Insurance not yet applied.
$897
Allowable posted directly. Walkout did the math.
−
Production Adjustments
Insurance / Contractual −$303
UCR − allowable. Lands weeks later. Morale-killer.
Practice Courtesy −$X
Doctor · family · employee discount.
Insurance / Contractual ✓ already done
Applied at walkout. No surprise later.
Practice Courtesy −$X
Same as gross side.
−
Collection Adjustments
Bad Debt / Write-Offs −$Y
RCM-side. The "big bucket" Paul described.
Bad Debt / Write-Offs −$Y
Same as gross side.
=
Revenue
Same destination. Got there with one extra surprise along the way.
Cleaner path. No insurance surprise after walkout.
SGA · Production Terminology
09 / 11
Appendix B · 09 · Office Inventory
Appendix B · SGA West / Gen 4 only · 88 active offices · MAR26 BOD data

Where each SGA West office sits today: Net, Gross, or FFS.

Denominator excludes divestiture offices. SGA East is mostly Net by methodology — not in this dataset.

38
Net
43%
Has insurance fee schedules. Walks out at the contracted rate. No insurance surprise after the fact.
30
Gross
34%
Posts at UCR. Insurance write-offs land weeks later — the morale-killer dynamic.
20
Fee-for-Service
23%
No insurance contracts. Posts at UCR. 14 of 20 are specialty (perio, peds, cosmetic).
📊 Pattern
GP offices split Net (38) vs Gross (24) vs a small FFS tail (6). Specialty offices (perio, peds, cosmetic) skew heavily FFS — 14 of 20 FFS offices are specialty.
Source
Gen 4 MAR26 BOD · Collections tab, Fee Type column · 88 active offices (4 divestiture-flagged offices excluded from denominator). SGA East not in this file — mostly Net by methodology.
SGA · Production Terminology
10 / 11
Appendix C · 10 · Next Steps
Appendix C · Active workstreams · separate projects, in flight

Two parallel builds. We're on it.

Both decisions from this meeting are already moving as separate projects. The deck is just acknowledging — no action needed in this room.

⏳ Active Workstream
Power BI Net-Production Budget
Executive / aggregate view across all entities
Convert SGA West Gross-billing offices to a net basis using historical adjustment %. Existing pacing report stays untouched at the office-manager level. Net budget rolls up to RODs / VPs / above.
OwnersKaren + Scott · GoalExecutive net view live for 2026 reporting
⏳ Active Workstream
West Pacing Dashboard Replica
Office-manager view · keep what they know
Replicate the existing West pacing dashboard so OMs continue using their familiar gross view through 2026. No retraining, no goalpost moves at the office level.
OwnerScott · GoalOM-facing dashboard parity through year-end
What they enable together
Dual reporting through 2026 — offices stay on their familiar number, executives see the consolidated net. Q3 working session decides the unified 2027 basis. No mid-year goalpost moves.
SGA · Production Terminology
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