CDC Dental Management 2 — Questions and Answers
Question 1: Which financial metric best measures how efficiently a dental practice collects payments relative to what it produces?
- Collection ratio (Correct answer)
- Overhead ratio
- Case acceptance rate
- Recall retention rate
Correct answer: Collection ratio
The collection ratio compares collections to production and indicates how effectively the practice converts billed services into received payments.
Question 2: A dental practice's accounts receivable is considered problematic when balances over 90 days exceed what percentage of total A/R?
- 10-15% (Correct answer)
- 25-30%
- 40-45%
- 50-55%
Correct answer: 10-15%
Industry benchmarks indicate that A/R balances over 90 days should not exceed 10-15% of total receivables to maintain healthy cash flow.
Question 3: In dental practice management, what does the term 'case acceptance rate' measure?
- The percentage of treatment plans patients agree to proceed with (Correct answer)
- The rate at which insurance claims are accepted
- The number of new patients who return for a second visit
- The ratio of completed cases to scheduled appointments
Correct answer: The percentage of treatment plans patients agree to proceed with
Case acceptance rate measures the percentage of presented treatment plans that patients agree to schedule and complete.
Question 4: Which staffing model is most common in large group dental practices to ensure clinical compliance across multiple locations?
- Centralized compliance officer overseeing all sites (Correct answer)
- Each location independently managing its own compliance
- Outsourcing compliance to a third-party vendor only
- Assigning compliance duties to the front desk coordinator
Correct answer: Centralized compliance officer overseeing all sites
Large group practices typically use a centralized compliance officer or team to standardize protocols and ensure consistency across all locations.
Question 5: What is the primary purpose of a dental practice's morning huddle?
- To review the day's schedule, identify patient needs, and align the team before patients arrive (Correct answer)
- To conduct staff performance reviews
- To process previous day's insurance claims
- To update patient records from prior appointments
Correct answer: To review the day's schedule, identify patient needs, and align the team before patients arrive
The morning huddle prepares the clinical and administrative team by reviewing the schedule, flagging special patient needs, and setting daily production goals.
Question 6: Under the ADA's Code of Professional Conduct, a dentist who refers patients primarily to specialists in whom they have a financial interest must:
- Disclose the financial relationship to the patient (Correct answer)
- Obtain written approval from the state dental board
- Eliminate the financial interest before making any referrals
- Refer to at least three specialists to avoid conflict
Correct answer: Disclose the financial relationship to the patient
Ethical guidelines require disclosure of financial interests so patients can make informed decisions about their care and referrals.
Question 7: A dental consultant reviewing a practice's overhead finds that lab fees represent 12% of collections. How does this compare to typical benchmarks?
- It is within or slightly above the typical 8-12% benchmark range (Correct answer)
- It is far below the expected 20-25% benchmark
- It is critically high and indicates poor lab vendor negotiation
- Lab fees are not factored into overhead benchmarks
Correct answer: It is within or slightly above the typical 8-12% benchmark range
Industry benchmarks place dental lab fees at approximately 8-12% of collections, so 12% is at the upper end but within an acceptable range.
CDC Dental Management 2
Which financial metric best measures how efficiently a dental practice collects payments relative to what it produces?