PPO Drop Calculator
Model the net-revenue impact of dropping a PPO plan — and find your break-even attrition rate: the most patients you could lose and still come out level.
Will Dropping This Plan Actually Cost You?
Most PPO drop decisions get framed as a single scary question: will I lose patients? The more useful question is the reverse one — how many patients could you lose and still be financially fine? Because write-offs on a discounted plan are often steep, the answer is frequently higher than owners expect. This calculator solves for that number directly: your break-even attrition rate.
For the full operator math behind this model — phased vs. cliff transitions, the hygiene math, worked scenarios, and when not to drop a plan — read PPO Drop Economics: The Real Net-Revenue Model for Going Out-of-Network. This tool is the calculator version of that article; it does not replace it.
This is a planning estimate, not a prediction or financial advice. Every rate below — attrition, out-of-network collection rate, write-off rate — is a user-adjustable assumption, not a claim about what will happen at your practice. Model your own numbers and consult your CPA before deciding.
Enter This Plan’s Numbers
Use your practice management system’s production report filtered to this plan.
The gap between production and collections is your effective write-off rate, shown below once you calculate: —.
This is the single most uncertain input in this model. It varies enormously by market, practice, and how the transition is handled — nobody can tell you the right number for your practice. Move the slider to see how the outcome changes, and compare it against the break-even rate below.
Modeling: 20% of active patients leave rather than stay out-of-network.
Share of billed (UCR) fees you actually collect once patients are responsible for the balance — not the full billed rate. An editable assumption, not a benchmark.
Leave at 0% if you don’t want to model this. Some practices see a modest drop in recall compliance among retained patients once they owe more out of pocket.
Assumes replacement patients produce at this plan’s average per-patient rate and collect at your out-of-network rate above.
Disclaimer: This calculator produces a planning estimate only. It does not predict how many patients you will actually retain, and it is not financial, legal, or business advice. Attrition rates vary enormously by market and practice; do not treat any default value here as typical. Model your own numbers and consult your CPA before making a decision. For the practices where dropping a plan is not the right call, see the “When Not to Drop” section of PPO Drop Economics.
Your PPO Drop Analysis
Enter your numbers to see the maximum share of patients you could lose and still come out level.
Net revenue change across the full attrition range, with your break-even point marked
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How to Use This Calculator
Enter the annual production and current collections attributable to the plan you’re considering dropping, plus how many active patients are on it. Move the attrition slider to model different shares of patients leaving if you go out-of-network — there is no correct default, so treat it as a scenario, not a forecast. Set your expected out-of-network collection rate and variable cost rate, and optionally account for softer hygiene compliance or the cost of acquiring replacement patients. The calculator returns your current and modeled post-drop net contribution, the dollar and percent change, and — the number that matters most — your break-even attrition rate.
Why Break-Even Attrition Is the Headline Number
Most owners fixate on “will I lose patients?” without a way to size how much patient loss the numbers can actually absorb. Because plan write-offs are often steep, the out-of-network collection rate on retained patients can more than offset a meaningful share of departures. This calculator solves directly for that threshold: the attrition rate at which dropping the plan stops paying off. Below that rate, dropping is modeled as net-positive; above it, net-negative.
What This Model Does Not Do
It does not predict how many patients you will actually retain — that depends on your market, your communication with patients, financing options you offer, and factors no calculator can see. It does not account for every practice-specific cost or timing effect (a phased transition behaves differently than an overnight cliff). For that level of detail, read PPO Drop Economics, which works through phase-vs-cliff sequencing, the hygiene math, and worked scenarios line by line — including when not to drop a plan at all.
Related Resources
- PPO Drop Economics: The Real Net-Revenue Model for Going Out-of-Network
- Reducing Insurance Dependency Hub
- Dentists Transitioning From PPO Plans: Success Stories
- Long-Term Stability After PPO Plan Resignation
- Reducing Insurance Dependency in Dental Practices
- In-Network vs. Out-of-Network: What Actually Changes
- Dental Insurance Verification SOP
- Dental Practice Loan Calculator
- DSCR Calculator
- All Dental Practice Insider Tools
Frequently Asked Questions
What is a good attrition rate to assume when dropping a PPO?
There is no industry-standard number, and Dental Practice Insider does not publish one. Attrition depends heavily on your market, how price-sensitive your patient base is, how the transition is communicated, and whether you offer financing or a transition period. Use the slider to test a range of scenarios rather than anchoring on a single assumption.
What does the break-even attrition rate actually mean?
It is the maximum share of patients on this plan you could lose and still have the same, or better, net contribution as staying in-network. Below that rate, the improved collection rate and lower write-offs on retained out-of-network patients outweigh the revenue lost from those who leave. Above it, the plan is modeled as costing you more than it was before.
Why is out-of-network collection rate not just 100% of billed fees?
Once a patient is out-of-network, they are typically responsible for a larger share of the bill, and collecting the full billed (UCR) amount from patients directly is harder than collecting a contracted rate from an insurer. The out-of-network collection rate models that friction — it is an editable assumption, not a fixed industry figure.
Does this calculator tell me whether I should drop this plan?
No. It models the net-revenue math under assumptions you control. Whether dropping a plan is the right decision also depends on factors this tool doesn’t capture — competitive dynamics in your market, patient loyalty, cash reserves to weather a transition, and more. See the “When Not to Drop” section of PPO Drop Economics for cases where staying in-network is the better call.