Days in accounts receivable (A/R) is one of the clearest signals of revenue cycle health. It measures, on average, how long it takes your practice to get paid after a service is delivered. The lower the number, the faster cash is coming in.
How do you calculate days in A/R?
A common formula is:
Days in A/R = Total accounts receivable ÷ (Total charges ÷ number of days in the period)
For example, if your total A/R is $300,000 and your average daily charges are $10,000, your days in A/R is 30.
What is a healthy days-in-A/R target?
Many healthy practices aim for under 30–40 days in A/R, though the right target depends on specialty and payer mix. Watching the trend over time — and how much A/R sits past 90 and 120 days — matters as much as the headline number.
How do you lower days in A/R?
- Submit clean claims faster. Same-day or next-day submission with scrubbing reduces the front of the cycle.
- Verify eligibility up front. Front-end errors are a top cause of delayed payments.
- Work A/R by age and value. Prioritize high-dollar and aging claims, and follow up consistently.
- Attack denials quickly. The longer a denied claim sits, the harder it is to recover.
- Clean up old A/R. Recover aged balances, including those over 120 days, that are often written off prematurely.
Revyn's A/R management is built to shrink aging and recover revenue you've already earned — with transparent reporting so you always know where your A/R stands.