Meridian Dental Partners · Practice Intelligence — Pillar Report · Trailing 90 Days

01 Overview

The whole group on one page — six pillars, the dual mandate, the path to ~$37M.

Meridian is worth ~$28M today. $1.73M/yr is recoverable — $1.23M of revenue to capture and $0.50M of cost to recover — which takes the group to ~$37M. Every pillar below carries its share of that number.

Finance

Production (T90)

$3.35M

+12.1% vs prior 90 days

Finance

EBITDA margin

26.2%

target 30%

Finance

Group valuation

~$28M

path to ~$37M

Growth

New patients (T90)

612

across 3 sites

Operations

Visits (T90)

6,650

9 dentists · 12 RDH

Clinical

Case acceptance

62.6%

Southlake 41% vs Plano 71%

Operations

Schedule utilization

75.4%

range 51%–91%

Finance

Production / chair-hour

$487

Plano $610 / Southlake $284

RCM

Net collection rate

94%

9% first-pass denial

Patients

Recall compliance

71.2%

Southlake 38%

Payroll

Payroll % of production

40.0%

$250K above benchmark

All Pillars

Recoverable (annual)

$1.73M

$1.23M revenue + $0.50M cost

The dual mandate, by pillar — where every recoverable dollar sits

Four revenue levers ($1.23M) + three cost levers ($0.50M) = $1.73M. Each is detailed in its pillar tab.

Lever	Pillar	Where it stands	Recoverable	Type
Front-of-house & scheduling	OPS	Schedule util 75% · walkout 41% · missed callbacks	$315K	revenue
Case acceptance & funnel	GRO	Acceptance 62.6% · 612 new patients · $210K unscheduled	$420K	revenue
Diagnostic capture	CLI	Dx capture 74% · imaging 75% · 0.9% complications	$180K	revenue
Revenue cycle	RCM	Net collection 94% · denial 9% · $96K unbilled	$315K	revenue
Payroll efficiency	PAY	Payroll 40% of production vs benchmark	$250K	cost
Supply & GPO	PROC	Supply 12% · off-contract spend · ACE DSN GPO	$150K	cost
Lab spend	CLI	Lab 12% · Frisco remake 4.2% vs Plano 1.2%	$100K	cost
Total recoverable		$1.23M revenue + $0.50M cost	$1.73M

$1.73M / yr

THE DUAL MANDATE · +$20K GROWTH AND −$10K COST, AT GROUP SCALE Capture the $1.23M of revenue leaking between systems and recover the $0.50M of cost overspend, and EBITDA margin moves 26.2% → ~35%. At 8.1× that is roughly +$9M of enterprise value — ~$28M → ~$37M.

How to read this report

One pillar per tab. The dollars always tie back to this page.

The Finance tab carries the P&L, the cost levers and the valuation bridge. Clinical & RCM carries the chair-side quality story and the chair-to-bank revenue cycle. Procurement carries supply spend, the GPO (ACE DSN) compliance picture, and vendor consolidation. The Summary closes with the sequenced 90-day plan.

For the woven, cross-pillar narrative — the patient journey, the case studies, the site-by-site deep dive — see the companion Connected Practice Report.

02 Finance

The P&L, the cost levers, and the valuation bridge.

$3.35M of production in the trailing 90 days at a 26.2% EBITDA margin. The cost base is $0.50M heavier than benchmark across three lines — payroll, supply and lab. Recover them and margin moves toward 35%, which at 8.1× is worth roughly +$9M of enterprise value.

Finance

Production (T90)

$3.35M

$13.4M annualised

Finance

EBITDA (T90)

$0.88M

$3.5M annualised

Finance

EBITDA margin

26.2%

target 30% · path to 35%

Payroll

Payroll % of production

40.0%

$250K above benchmark

Clinical

Lab & materials %

12.0%

Frisco remake 4.2%

Procurement

Clinical supplies %

12.0%

off-contract spend

Finance

Production / chair-hour

$487

target $520

All Pillars

Cost to recover

$0.50M

payroll + supply + lab

Trailing-90 P&L

Line	T90 $	% of production	Benchmark
Production (collected)	$3.35M	100%	—
Provider payroll	$0.84M	25.0%	22%
Support & admin payroll	$0.50M	15.0%	13%
Lab & materials	$0.40M	12.0%	10%
Clinical supplies	$0.40M	12.0%	9%
Facilities & overhead	$0.33M	9.8%	10%
Total operating cost	$2.47M	73.8%	70% target
EBITDA	$0.88M	26.2%	30% target

The three cost levers — $0.50M to recover

PAYROLL

$250K

Payroll % of production40.0%

Benchmark35%

Leverrota design + associate mix

Worst siteSouthlake 31.8% provider

SUPPLY (PROCUREMENT)

$150K

Supply % of production12.0%

Benchmark9%

LeverACE DSN GPO compliance

Detailsee Procurement tab

LAB

$100K

Lab % of production12.0%

Frisco remake rate4.2%

Plano remake rate1.2%

Leversupplier consolidation

~$37M

THE VALUATION BRIDGE · 8.1× EBITDA Today: $3.5M EBITDA × 8.1× = ~$28M. Recover the $0.50M of cost and capture the $1.23M of leaking revenue, and EBITDA margin moves 26.2% → ~35% — lifting EBITDA toward $4.5M and enterprise value to ~$37M (+$9M). The cost levers alone are worth ~+$4M of that.

03 Clinical & RCM

Chair-side quality, and the chair-to-bank revenue cycle.

The clinical floor is sound — 0.9% complications, well below benchmark. The opportunity is upstream (diagnosis under-captured) and downstream (the revenue cycle leaks $315K between the chair and the bank).

Clinical — quality is the floor, diagnosis is the lever

Clinical

Diagnostic capture

74%

target 90%

Clinical

Complication rate

0.9%

below 1.5% benchmark

Clinical

Imaging compliance

75%

target 95%

Clinical

Case acceptance

62.6%

Southlake 41%

Patients

Recall compliance

71.2%

Southlake 38%

Clinical

Lab remake rate

4.2%

Frisco · Plano 1.2%

RCM — chair to bank

RCM

Net collection rate

94%

target 98%

RCM

First-pass denial rate

target 4%

RCM

Clean-claim rate

88%

target 96%

RCM

Days in AR

target 30

RCM

First-pass yield

82%

target 92%

RCM

Recoverable

$315K

unbilled + denials + underpay

Where the $315K leaks between the chair and the bank

Leak	What it is	Recoverable	Difficulty
Unbilled procedures	Completed, clinical note present, no claim submitted	$96K	easy
Denied & aged AR	First-pass denial 9% + AR aged >90 days	$96K	medium
Underpayments	Paid below the contracted fee schedule, never appealed	$123K	medium
Total RCM recoverable	chair-to-bank revenue cycle	$315K

THE EASIEST $96K IN THE GROUP

The unbilled-procedure line is the lowest-effort recapture in the practice: a specific list of completed treatments with no matching claim. The billing team can run it through the clearinghouse in roughly a week. The denial and underpayment lines need a standing appeals workflow — structural, but each pays back every month.

04 Procurement

Supply spend, GPO compliance, and vendor consolidation.

Meridian spends ~$1.6M/yr on clinical and office supplies — 12% of revenue against a 9% benchmark. The group is on the ACE DSN GPO, but only ~65% of spend runs on-contract; the rest is maverick (ad-hoc Amazon and rep orders) that forfeits the negotiated tier. Closing that gap is worth $150K/yr.

Procurement

Supply spend (annual)

$1.6M

12% of revenue

Procurement

Supply % vs benchmark

12%

benchmark 9%

Procurement

On-contract (GPO) compliance

65%

target 90%

Procurement

Maverick spend

35%

off-contract, full price

Procurement

Active vendors

consolidate to ~18

Procurement

Recoverable

$150K

the supply cost lever

Spend by category — on-contract vs maverick

Recoverable = the price delta between maverick orders and the ACE DSN contracted tier, applied to the off-contract share of each category.

Category	Annual spend	On-contract	Maverick	Recoverable
Consumables & disposables	$560K	72%	28%	$52K
Restorative materials	$440K	64%	36%	$44K
Small equipment & handpieces	$200K	55%	45%	$24K
Infection control / PPE	$260K	80%	20%	$18K
Office & admin (largely ad-hoc Amazon)	$140K	40%	60%	$12K
Total	$1.60M	65%	35%	$150K

ACE DSN GPO · THE CONTRACT

Tier pricing left on the table.

GPOACE DSN (acedsn.com)

Tier driveron-contract volume

Current compliance65%

Target compliance90%

Worth at target$150K/yr

VENDOR CONSOLIDATION

31 vendors → ~18.

Active vendors today31

On the GPO formulary~18 cover the need

Maverick channelad-hoc Amazon + reps

Fixroute ordering through one approved catalog

Side benefitfewer invoices, cleaner AP

THE PROCUREMENT PLAY

This $150K is the cleanest cost line in the group: no clinical trade-off, no staffing change. Route the 35% of maverick spend — mostly ad-hoc Amazon office orders and rep-sold restorative materials — onto the ACE DSN contracted catalog, hit the next volume tier, and consolidate from 31 vendors to ~18. It is the supply half of the $0.50M cost lever on the Finance tab.

05 Summary

The sequenced 90-day plan — early wins fund the harder work.

$1.73M of recoverable value across the full sequence; $414K is bankable inside the first 30 days. Three phases — stop the bleed, capture momentum, build the system. Each line carries the pillars that supply the data and own the work.

PHASE 1

Days 1–30 · Stop the bleed

$414K bankable

Unbilled-procedure recovery across all 3 sites — 38 completed treatments, never claimed. ~1 week of billing work, $96K cash. CLI RCM
Southlake lapsed-recall callback — 304 patients overdue 9–18 months; 30% reactivation. $73K/yr recurring. PAT
"Next-recall-at-checkout" rollout at Frisco + Southlake — the workflow Plano runs at 86%. $58K/yr. PAT OPS
Hire 2nd coordinator at Frisco — unblocks the conversion bottleneck. $42K/yr loaded. PAY GRO

PHASE 2

Days 31–60 · Capture momentum

$520K addressable

Stalled-treatment recovery — scripted day-7/14/30 follow-up on diagnosed-not-booked plans. Part of the $420K Growth lever. GRO
Stand up the denial-appeals workflow — first-pass denial 9%→4%, appeal aged AR. Part of the $315K RCM lever. RCM
Route maverick spend onto the ACE DSN catalog — GPO compliance 65%→90%. $150K/yr. PROC
Switch Frisco's lab supplier — remake 4.2% vs Plano 1.2%. $100K/yr. CLI FIN

PHASE 3

Days 61–90 · Build the system

Structural — lasting

Roll out Plano's same-day-booking protocol to Frisco + Southlake — lift acceptance toward 75%. GRO OPS
Rota & associate-mix redesign — payroll 40%→benchmark. Part of the $250K payroll lever. PAY
Diagnostic-capture cadence — imaging + perio charting to lift dx capture 74%→90%. $180K. CLI
Re-baseline the report at day 90 — measure realised vs forecast on every line, reset the next quarter. OPS FIN

$1.73M / yr

THE DUAL MANDATE, CLOSED · ~$28M → ~$37M $1.23M of revenue captured + $0.50M of cost recovered moves EBITDA margin 26.2% → ~35%. At 8.1× that is roughly +$9M of enterprise value. Phase 1 proves it in 30 days; Phases 2–3 make it structural. For the full cross-pillar narrative behind each line, see the companion Connected Practice Report.