Days in accounts receivable estimates how long, on average, it takes to collect payment after services are billed. It is a useful signal, but it blends several processes together: claim submission speed, payer response times, denial volume, and patient collections.
Why a single number misleads
A practice with a mix of fast-paying commercial payers and slow government payers may have a higher average without any operational problem. Comparing your number with a national figure can be equally misleading, because payer mix and specialty drive much of the difference.
What to track alongside it
- Aging by bucket: how much is 0 to 30 days, 31 to 60, 61 to 90, and over 90
- Denial rate by payer, so you can see which relationships need attention
- Clean claim rate on first submission
- Time from date of service to claim submission
Review the trend monthly. A steady rise of a few days over several months usually has a clear cause, such as a new payer rule, a staffing gap, or a change in the clearinghouse. Find the cause and the number will follow.
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