Dental RCM
Dental PPO Write-Off Calculator
Estimate how much production your practice writes off to PPO fee schedules each year and what net production is left.
Estimated result
Fix the highlighted inputs to see your result.
Annual PPO write-off
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PPO write-off as a % of gross production
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- Net production after PPO write-offs
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- PPO production at office fees
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- Average monthly PPO write-off
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Estimates only, based on your inputs and the assumptions below. Not a guarantee of results or professional advice. Inputs stay in your browser.
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Quick answer
What does the dental ppo write-off calculator measure?
A dental PPO write-off calculator estimates the gap between your office fees and the fees your PPO contracts allow. Using your PPO share of production and average PPO fee as a percentage of your fee, it shows the annual write-off, the write-off as a share of gross production and the net production you can expect to collect.
Formula
PPO production = Gross production x PPO share %
Production for patients seen under PPO contracts, at your office fees.
Annual PPO write-off = PPO production x (1 - Average PPO fee %)
The difference between what you charge and what the plans allow.
Write-off % of gross = Annual PPO write-off / Gross production x 100
How much of total production is adjusted off to PPO schedules.
Net production = Gross production - Annual PPO write-off; Monthly write-off = Annual write-off / 12
The production you can actually expect to collect, and the average monthly adjustment.
Worked example
A practice produces $1,200,000 a year at office fees, and 70% of it is for PPO patients, so PPO production is 1,200,000 x 70% = $840,000. Its PPO plans allow 65% of office fees on average, so the write-off is 840,000 x 35% = $294,000 a year, or $24,500 a month. That is 294,000 / 1,200,000 = 24.5% of gross production, leaving net production of $906,000.
| Annual gross production at office fees | $1,200,000 |
|---|---|
| Share of production billed to PPO plans | 70% |
| Average PPO fee as a % of your office fee | 65% |
| Annual PPO write-off | $294,000 |
| PPO write-off as a % of gross production | 24.5% |
| Net production after PPO write-offs | $906,000 |
| PPO production at office fees | $840,000 |
| Average monthly PPO write-off | $24,500 |
Assumptions and limits
- The average PPO fee percentage is weighted by the procedures you actually perform, not a simple average of the fee schedule.
- Production for fee-for-service, DHMO and Medicaid patients is outside the PPO share and has no PPO write-off in this calculation.
- Office fees are applied consistently to every patient, so the write-off reflects the contracted fee gap only.
- Denial, bad debt and courtesy write-offs are excluded.
Frequently asked questions
What is a PPO write-off in a dental office?
A PPO write-off is the difference between your office fee and the fee a PPO plan allows under your contract, which the practice agrees not to bill to the patient. For example, if you charge $1,200 for a crown and the plan allows $950, the $250 difference is written off. It is a contractual adjustment, separate from denials or bad debt.
How do I use this dental PPO write-off calculator?
Enter annual gross production at your full fees, the share of that production billed to PPO plans and the average PPO fee as a percentage of your fee. The dental PPO write-off calculator multiplies PPO production by the fee gap to show the yearly write-off, its share of gross production and net production. Practice management reports usually provide each input.
Should PPO write-offs be posted at the time of service?
Many practices post the expected PPO write-off when the claim is created so that the patient balance and AR reflect what is actually collectible. The adjustment is then corrected when the EOB or ERA arrives if the carrier allowed a different amount. Posting it consistently keeps production, collection rate and aging reports accurate.
Why do PPO write-offs seem high even when collections look healthy?
A practice can collect almost all of its net production and still write off a large part of gross production, because the write-off is set by the fee schedules it signed, not by billing performance. Measuring collections against net production separates the two. Reviewing which plans have the lowest fees for your most common procedures shows where the write-off comes from.
Can a dental practice reduce its PPO write-offs?
Write-offs fall when the gap between office fees and allowed fees narrows or when less production is tied to low-paying plans. Practices often review fee schedules by CDT code, ask carriers about fee updates, and weigh each plan against the patients it brings. Leaving a network can lower write-offs but may also reduce patient volume, so model both sides first.
Written by the Texas Solutions RCM team. Last reviewed . General information, not legal or coding advice; payer rules vary.
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