What Is Days in AR?

Days in Accounts Receivable (AR) measures how long it takes to collect payment after a claim is submitted. The industry benchmark is under 35 days; top-performing practices run under 28.

Step 1 — Submit Claims Daily

Charge lag is the single biggest driver of high AR days. Submit claims the same day charges are entered — never batch weekly.

Step 2 — Work Denials Within 24 Hours

Every denied claim that sits unworked for 30 days is a claim that may miss the appeals deadline. Build a daily denial queue sorted by dollar value and file date.

Step 3 — Automate Eligibility Verification

Verify insurance for every scheduled patient 48 hours in advance. Real-time eligibility checks catch coverage lapses before they become denials.

Step 4 — Segment AR by Payer

Work high-volume commercial payers first — they have the shortest appeals windows and the highest denial reversal rates.

Step 5 — Write Off Correctly

Post all contractual write-offs at the time of payment posting, not at month end.

A
Written by admin
Revenue cycle management specialist at 360Solutions Medical Billing. Our team writes practical guides on medical billing, denial management, credentialing, and AR recovery for practice owners and operations leaders.