Days in accounts receivable (A/R) estimates how many days of average charges are represented by the current receivable balance. It is useful only when the data source, charge period, exclusions, and calculation method stay consistent.
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.
How should a days-in-A/R result be interpreted?
Compare the practice against its own consistently calculated baseline, then segment balances by payer, claim type, specialty, status, and aging bucket. A single universal target can hide a data-definition problem or a concentrated workflow issue.
How do you lower days in A/R?
- Define a submission cadence. Track when documentation, coding, edits, and exceptions are complete enough for the claim to move.
- Review front-end exceptions. Track unresolved eligibility, authorization, registration, and documentation items before submission.
- Work A/R by age and value. Prioritize high-dollar and aging claims, and follow up consistently.
- Work denials within applicable deadlines. Record the reason, owner, evidence, next action, and payer-specific due date.
- Segment legacy A/R. Separate workable balances from timely-filing risk, missing records, unresolved payer issues, and inventory that requires a practice decision.
Revyn's proposed A/R workflow defines the included inventory, prioritization rules, follow-up evidence, next-action status, exceptions, reporting fields, and review cadence.