Budget Convention · 2026

Two ways to score the same budget: Net vs Gross

Same practices, same patients, same dollars billed. The only difference is where each side draws the budget line. Here's how our pacing report scores it — then how SGA does.

● Gen4 / Pacing-report view
Budget at ProductionProduction booked as-is — our pacing report
Walked-out Charges $392.2M
− Additional Contractual Allowance not applied —
− Sales Returns / Discounts not applied —
= Production $392.2M
Budget is set here
$392.2M Gross Production
Actual scored as: Gross Production vs Gross Budget. No insurance or returns adjustment — production = what was charged.
↔
$92M
The gap
23.4% slip
↔

Same network. The gap = contractual allowance + returns. Convert using each practice's own TTM behavior.

● SGA East view
Budget at Net ProductionNet Practice Revenue — what you can actually book
Gross Charges $392.2M
− Contractual Allowance insurance write-down −$91.1M · 23.2%
− Sales Returns / Discounts −$0.9M · 0.2%
= Net Practice Revenue $300.3M
Budget is set here
$300.3M net
Actual scored as: Net Production vs Net Budget. Adjustments already removed, so budget = collectible revenue.
Slide 1 of 2 — Gen4 / pacing view

Why it matters

A practice can hit its gross pacing target and still miss net revenue if its contractual allowance runs hot. The $92M gap isn't underperformance — it's the cost of insurance contracts and discounts that gross numbers hide.

The fix

Convert Gen4-style gross into SGA-style net per location using each practice's trailing-12-month allowance & returns ratio. Then both budgets speak the same language. Full model & per-practice math on the dashboard.

Source: GEN4 03.2026 TTM Reporting + 2026 Budget v8 · TTM close 2026-03-31 · 91 locations Full dashboard → sga-net-budget-v2.pages.dev