What 'days in A/R' means
Days in accounts receivable is the average number of days it takes to collect payment after a service. The common formula is:
- Total A/R ÷ average daily charges (average daily charges = total charges over a period ÷ number of days in that period).
Lower is better — it means cash arrives faster.
What's a healthy number?
Benchmarks vary by specialty and payer mix, but as a general guide: under ~40 days is acceptable, and the low 30s or better is strong. Equally important is the aging mix — how much of your A/R is over 90 or 120 days. A healthy practice keeps A/R over 120 days in the single digits as a share of the total.
Why days in A/R climbs
Common culprits:
- Claims submitted slowly instead of within a day
- Denials that aren't reworked quickly (or at all)
- No systematic follow-up on unpaid claims by payer and age
- Growing patient balances with weak statements/follow-up
How to lower it
- Submit clean claims within 24 hours of service
- Verify eligibility up front so fewer claims deny
- Work denials within 48 hours, with documentation
- Segment A/R by payer and age and chase the oldest, biggest balances first
- Send clear patient statements and follow up consistently
How Synergy keeps A/R low
We submit within 24 hours, work denials within 48 hours, and target keeping A/R over 120 days under 10%. You get monthly Practice Performance Reports so you can watch the number move. We can also clean up old A/R you've already built up. Get a free audit of your A/R days.
Frequently asked questions
How is days in A/R calculated?
Total accounts receivable divided by average daily charges (total charges over a period divided by the number of days). It estimates how many days, on average, it takes to get paid.
What is a good days-in-A/R for a small practice?
As a general benchmark, under about 40 days is acceptable and the low 30s is strong, but it varies by specialty and payer mix. Watching the percentage of A/R over 120 days matters just as much.