Why Days in AR Matters
Days in accounts receivable (AR) is one of the most important financial metrics in medical practice management. It measures how long it takes from service delivery to payment collection. Lower is always better.
Industry Benchmarks by Specialty
Primary care: 25-35 days. Cardiology: 30-40 days. Orthopedics: 35-45 days. Emergency medicine: 40-55 days. Hospital systems: 45-60 days. Top performers in every specialty achieve 15-25% below these benchmarks.
What Drives High AR Days
The main drivers of high AR are: slow claim submission, high denial rates, inadequate follow-up processes, understaffed billing departments, and poor eligibility verification practices.
How Top Performers Achieve 18-Day AR
Daily claim submission, automated eligibility verification, systematic denial management, dedicated AR follow-up staff, and real-time reporting dashboards are the key differentiators.
Quick Wins to Reduce AR Days
Submit claims daily (not weekly), implement real-time eligibility checks, follow up on all claims over 30 days, and track your top 5 denial reasons for targeted prevention.
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Rafsons Med Billing
RCM Specialist · Rafsons Med Billing
Certified revenue cycle management professional with expertise in medical billing, coding, and healthcare reimbursement strategies.