Days in accounts receivable measures how quickly a practice turns its charges into cash. Average daily charges are usually calculated from the last three months of gross charges.
A rising number means something is slowing down: late claim submission, unworked denials or missing follow-up. Look at it alongside AR by aging bucket.
Formula
Days in AR = total accounts receivable ÷ average daily gross charges
Related terms
- Accounts receivable (AR)
- Money owed to the practice for services already provided.
- AR aging
- Accounts receivable grouped by how long it has been outstanding.
- Net collection rate
- How much of the money you were entitled to collect you actually collected.