Days in accounts receivable estimates how long it takes, on average, to collect payment after services are billed. A lower number generally means cash arrives faster. A common formula divides total A/R by average daily charges over a period; use the same method every month so you can compare trends.
Treat the number as a diagnostic, not a goal in itself. Compare it by payer and by client, because an average hides the slow spots.
Automation does not change payer behavior. It makes your process consistent: tasks appear when a threshold is crossed, reminders go out on time, escalations happen, and reports are generated without a spreadsheet marathon. Those consistency gains are what shorten the gap between “claim is aging” and “someone is working it.”
Avoid promising a specific percentage improvement in advance. Results depend on payer mix, specialty, claim quality and staffing.
Illustrative scenario, not a client result: the numbers below are made up to show the method.
A practice sees days in A/R drift upward. Splitting the number by payer shows two payers account for most of the aged balance. The billing team moves the first status check from day 30 to day 18 for those payers, adds a weekly review of the oldest ten claims, and adds eligibility verification for scheduled visits. Over several months they track the trend and the share of claims worked on time. The gain comes from timing and consistency, not magic.
We review your aging and show the three fixes most likely to speed collection.
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The overall average hides the story. Slice A/R three ways and look for outliers:
| Slice | Question it answers | Typical finding |
|---|---|---|
| By payer | Which payers are slowest or deny most? | A few payers account for most aged balance |
| By age bucket | How much sits in each age range? | A long tail past 90 days that nobody owns |
| By claim value | Where is the money concentrated? | A handful of high-value claims worth immediate attention |
| By provider or location | Is it a documentation or workflow issue? | One site or provider with higher rework |
| By responsible party | Insurance versus patient balance | Patient balances aging because statements are inconsistent |
Consistency beats intensity. A thirty-minute standing review often finds more than a monthly marathon.
Patient responsibility is its own workflow. Send clear statements on a fixed schedule, offer several payment options, and make payment links easy to use. Keep messaging respectful and compliant with the rules that apply to your organization, and avoid including clinical details in text or email reminders. A written payment-plan policy helps staff respond consistently.
| Days | Focus | Output |
|---|---|---|
| 1-30 | Measure and define | Baseline by payer and client; written first-touch and aging rules |
| 31-60 | Automate and enforce | Automated tasks and reminders for one client or payer group; weekly review habit |
| 61-90 | Prevent and expand | Front-end fixes for top denial reasons; roll out to more clients; monthly report in place |
| Role | Owns | Reviews |
|---|---|---|
| Front desk | Eligibility, registration accuracy, authorization checklist | Weekly list of registration-related denials |
| Coder | Code selection support, documentation queries | Monthly coding denial summary |
| Biller | Clean submission, first-touch follow-up, denial work | Weekly aging by payer |
| Billing lead | Escalations, payer issues, appeals above a threshold | Monthly trend by payer and client |
| Practice administrator | Decisions on write-offs, policies and staffing | Monthly one-page report |
Writing ownership down is half the fix. When everyone assumes someone else watches aging, nobody does.
It varies by specialty, payer mix and billing model. Rather than chasing a universal benchmark, track your own trend by payer and client and compare against similar practices.
Usually a faster first touch on submitted claims and consistent aging-based follow-up, combined with eligibility checks before visits and clean claim submission.
A common method divides total accounts receivable by average daily charges over a chosen period. Use the same formula each month.
It improves consistency of follow-up, which supports faster collection. It does not change payer payment timelines or fix coding issues.
Yes, monthly and by payer, along with top denial reasons and one recommended action. It builds trust and surfaces front-end problems.
We review your aging and show the three fixes most likely to speed collection.
Thanks! Request received. We will email you within one business day to schedule your free audit.
Book a free audit. We review your aging and follow-up process and show the three fixes most likely to speed collection.
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