1057: Metric Mondays: Why Is Production Up but Profit Not Following? - Miranda Beeson

Why can your practice feel busier than ever, show higher production, and still not see more money in the bank? In this episode, Kirk Behrendt brings back Miranda Beeson, ACT Dental’s Director of Education, to explain why gross production is often a misleading proxy for profitability and what to measure instead.

You’ll learn the difference between gross and net production, how write-offs and overhead quietly erase gains, and the first steps to protect margins so profit can follow production. Listen to Episode 1057 of The Best Practices Show!

Main Takeaways:

• Gross production can be a “gross misrepresentation” of what a practice can actually collect, while net production reflects what is realistically collectible.
• Higher production does not automatically create higher profit when write-offs grow and overhead rises at the same time.
• Practices get it wrong when they celebrate production without tracking what gets adjusted away and what it costs to deliver the care.
• Large write-offs (insurance, membership plan discounts, elective courtesies, and untracked adjustments) can create an “effort gap” where work is done but revenue is not collectible.
• Adding hours, days, team members, and equipment to chase production can increase expenses and compound the profitability problem.
• Practices get it right by tracking adjustments by category (and often by individual insurance carriers) and by regularly reviewing the P&L to confirm expenses are aligned with revenue-producing needs.
• The first action steps are to clarify write-offs in the practice management system and to understand where overhead dollars are going before pushing for more production.

Snippets:

00:00 Why production can be up while profit doesn’t follow.

02:10 Gross vs. net production and why the distinction matters for doctors and teams.

06:10 What it looks like when practices get it wrong and the bank account doesn’t grow.

07:05 Write-offs and the “effort gap” between delivered care and collectible revenue.

08:35 How chasing more production can quietly drive overhead higher.

10:05 Why the real issue is often strategy, not production.

14:15 The mindset shift for fee-for-service: being okay with downtime and using it well.

17:10 The first thing to do tomorrow: get clarity on write-offs and adjustments.

19:05 The next step: review the P&L and understand overhead buckets.

Guest Bio/Guest Resources:

Miranda Beeson has over 25 years of clinical dental hygiene, front office, practice administration, and speaking experience. She is enthusiastic about communication and loves helping others find the power that words can bring to their patient interactions and practice dynamics. As a Lead Practice Coach, she is driven to create opportunities to find value in experiences and cultivate new approaches.

Miranda graduated from Old Dominion University, and enjoys spending time with her husband, Chuck, and her children, Trent, Mallory, and Cassidy. Family time is the best time, and is often spent on a golf course, a volleyball court, or spending the day boating at the beach.

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