Top 5 Questions to Ask Before Agreeing to a Collections-Based Contract

“30% of collections” can be a fair deal or a painful one. It depends on the rules hiding behind that phrase.

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Here are five questions to ask before you agree to a collections based dentist job.

1. “When are collections counted for my pay?”

What it means You want to know exactly when money is credited to you: when treatment is done, when insurance posts, or when the patient actually pays.

Why it affects pay Slow insurance and slow patient payments can delay or lower your income if you are only paid when money comes in, not when you do the work.

Simple example

• •You finish a case in January. Insurance pays in March. If collections are only counted when they post, January’s pay may be low and March’s higher, even though you did the work months earlier.

What a clear answer sounds like “Collections are credited to you when insurance posts or the patient pays, and your pay for each month is based on that month’s posted collections.”

What a vague answer may hide “We figure it out when the money comes in. It all averages out” could mean long delays or messy tracking that you cannot follow.

2. “What happens if insurance pays late or not at all?”

What it means You need to know who carries the risk when insurance is slow or a patient never pays.

Why it affects pay If you only get paid on what is collected, unpaid balances and very late payments can quietly lower your yearly income.

Simple example

• •You produce 60k in a month. If only 45k is collected that month because of delays and non‑payment, your 30% is on 45k (13.5k), not 60k (18k).

What a clear answer sounds like “If insurance never pays or a patient defaults after reasonable efforts, the practice absorbs that loss. We do not charge that back to you later.”

What a vague answer may hide “We expect our doctors to help with collections” might signal pressure to carry risk for things outside your control.

3. “Are write-offs and discounts removed before my percentage is calculated?”

What it means Write‑offs are amounts the office agrees not to collect (like PPO discounts). You want to know if your percentage applies to the full fee or the adjusted amount.

Why it affects pay If you are paid on adjusted collections after write‑offs, your pay base is smaller than the fee schedule suggests.

Simple example

• •Fee schedule crown: 1,200.
• •Insurance allows: 900.
• •If your percentage is applied after write‑offs, you are paid on 900, not 1,200. At 30%, that is 270 instead of 360.

What a clear answer sounds like “We remove PPO write‑offs and documented discounts before calculating collections for your percentage. We can show you a sample report.”

What a vague answer may hide “We adjust things as needed” can cover large write‑offs you never see clearly explained.

4. “Is there a daily guarantee during ramp-up, and is it a true floor or a recoverable draw?”

What it means You want to know if there is a minimum you will earn per day and whether you ever have to pay that back.

Why it affects pay In the first months, collections may be low. A real guarantee protects you. A recoverable draw can look like protection but become a debt if you do not hit targets.

Simple example

• •Guarantee: 650/day. Your collections‑based pay in month one only adds up to 8,000, but your guarantee total is 10,400.
• •If it is a true floor, you simply get 10,400.
• •If it is a recoverable draw, you may now “owe” 2,400 as a negative balance that carries forward.

What a clear answer sounds like “The 650/day is a non‑recoverable guarantee for the first six months. You get the higher of your collections percentage or the guarantee each pay period, and you never pay back the difference.”

What a vague answer may hide “It is a draw that we reconcile later” without clear language often means you are on the hook if you do not reach certain numbers.

5. “Can I see sample reports so I understand how my collections pay will be calculated?”

What it means You are asking to see real or anonymized reports showing how an associate’s pay is calculated month to month.

Why it affects pay Sample reports reveal how production, adjustments, collections, lab fees, and your percentage actually move from the top line to your paycheck.

Simple example A good report shows:

• •Production.
• •Adjustments/write‑offs.
• •Net collections.
• •Lab fees (if any).
• •The exact number your percentage is applied to.
• •Final pay.

What a clear answer sounds like “We are happy to show you an anonymized associate report and walk through how we get from collections to your pay.”

What a vague answer may hide “If you trust us, you do not need to see that level of detail” is not an answer. It is a red flag.

So use these questions before you sign a collections based dentist contract deal!!

Collections‑based pay can be fair, but only if you understand the rules.

Before you sign:

• •Nail down when collections count.
• •Ask who carries the risk for slow or unpaid balances.
• •Get clarity on write‑offs and discounts.
• •Confirm whether your guarantee is a true floor.
• •Review a sample pay report.
• •Then plug the contract’s collections rules into Bonded’s calculator and offer tools so you can see how that collections‑based offer is likely to pay in real life, and how it stacks up against a production‑based or salary‑plus‑bonus job before you commit.