What days in A/R means, and why it matters
Days in accounts receivable estimate how long, on average, it takes to collect what you have billed. You can calculate it by dividing your total accounts receivable by your average daily charges. A rising number means cash is sitting with payers and patients instead of in your practice, which strains everything from payroll to growth.
Submit clean claims the first time
Nothing lengthens A/R like rework. Accurate eligibility verification, correct coding, and claim scrubbing before submission mean claims are paid on the first pass instead of bouncing back for correction.
Work the A/R by aging buckets
Sort receivables into aging buckets (0 to 30, 31 to 60, 61 to 90, and over 90 days) and work them deliberately, prioritizing high-dollar and older claims before they hit timely-filing limits. Anything sitting past 90 days deserves special attention.
Follow up on unpaid claims promptly
A submitted claim is not a collected claim. Systematic follow-up on unpaid and no-response claims, rather than waiting to see what comes in, is one of the biggest levers on A/R days.
Prevent and rework denials fast
Denials stall A/R twice, once when they are denied and again if they sit unworked. Fast, tracked denial management and appeals keep that revenue moving instead of aging out.
Tighten patient collections
As patient responsibility grows, so does its share of A/R. Collecting copays and estimated balances at the point of service, sending clear statements, and offering payment plans all shorten the patient side of A/R.
How Consult By Me helps
We attack A/R from both ends, cleaner claims on the front and disciplined follow-up, denial work, and A/R recovery on the back, with reporting on your aging buckets so you can see the trend. See our RCM services.
Benchmark A/R targets vary by specialty and payer mix; the most important signal is a steady downward trend in your own numbers.