How do you reduce AR days?
Reduce AR days by working aging claims in priority order, fixing the front-end causes that create them (eligibility and authorization gaps), holding a consistent payer follow-up cadence, resolving denials quickly, and tracking Days in AR and AR over 90 days every week. Sustained improvement comes from steady follow-up plus upstream prevention, not one-time cleanups.
What are AR days, and what is a good number?
Days in AR (also called AR days or DSO for healthcare) estimates how long, on average, it takes to collect after a claim is created. A common formula divides total accounts receivable by average daily charges. The lower the number, the faster you are converting billed work into cash.
There is no single universal target because it varies by specialty and payer mix, but rising AR days — and a growing share of AR sitting past 90 days — is a reliable warning sign that follow-up is not keeping pace. We treat your own trend as the baseline rather than promising a specific number.
Step 1: Segment AR by age and value before touching anything
You cannot work everything at once, so prioritize. Sort open AR by aging bucket and by dollar value, then flag claims near timely-filing deadlines. This tells you where recoverable money actually is and what is at risk of being lost permanently.
- Pull an aging report by 0-30, 31-60, 61-90, 91-120, and 120+ day buckets
- Flag high-dollar claims and anything approaching timely-filing limits
- Separate payer types — commercial, Medicare, Medicaid, patient balances
- Identify the top denial and non-payment reasons driving the backlog
Step 2: Work claims in priority order, not chronologically
Working oldest-to-newest feels orderly but often wastes effort on uncollectible claims. Work by recoverability and risk instead.
- 01
Timely-filing risk
Work claims about to hit filing deadlines first — these are use-it-or-lose-it.
- 02
High-dollar, recoverable
Prioritize large balances with a clear path to payment.
- 03
Quick fixes
Resolve claims pending on simple corrections or resubmissions.
- 04
Aged but workable
Systematically work older buckets with documented follow-up.
- 05
Write-off review
Flag genuinely uncollectible claims for a decision rather than re-touching them forever.
Step 3: Fix the front end so AR stops refilling
AR days will not stay down if the front end keeps generating denials. Most aged AR traces back to a few upstream gaps. Closing them shrinks future backlog instead of just clearing today's.
Verify eligibility before service
Confirm coverage and benefits up front to prevent eligibility denials.
Secure prior authorizations
Track required auths so claims are not denied for missing approval.
Clean up claim edits
Resolve clearinghouse and payer edits before claims go out.
Standardize follow-up SOPs
Document when and how each payer is worked so nothing stalls.
Step 4: Hold a consistent follow-up cadence
The single biggest driver of high AR days is inconsistent follow-up. Claims that are touched on a schedule get paid; claims that sit do not. A reliable cadence — across payer portals and calls, with recorded outcomes — is what keeps aging buckets from rebuilding. This is exactly the kind of repetitive, capacity-sensitive work that a co-managed AR follow-up team is built to sustain.
Step 5: Track the metrics that show whether it is working
Measure weekly against your own baseline so you can see movement and catch backslides early.
Days in AR
Average days in AR, trended against your starting baseline.
AR over 90 days
Share of AR aging past 90 days — should fall as follow-up holds.
Claims worked
Weekly volume of claims touched and resolved.
Denial rate
Watch upstream prevention working as the front end improves.
When to add outside capacity
If your team cannot work every aging bucket every week, AR days will rise no matter how good your process is — it is a capacity problem. Salt HealthOps works AR follow-up as a co-managed function: we sustain the cadence inside your system with US-based accountability, QA review, and weekly reporting. A fixed-scope backlog cleanup is a common, low-risk way to start.
AR Follow-Up Services
Co-managed follow-up that holds a steady cadence.
Learn moreDenial Management Services
Resolve and prevent the denials feeding AR.
Learn moreEligibility & Benefits Verification
Stop front-end denials at the source.
Learn moreGo deeper
Frequently asked questions
How are Days in AR calculated?
A common method divides total accounts receivable by average daily charges (total charges over a period divided by the number of days). It estimates the average number of days it takes to collect. Track the trend over time rather than fixating on a single snapshot.
Should we work oldest claims first?
Not strictly. Work by recoverability and risk: claims near timely-filing deadlines and high-dollar, collectible balances come first. Working purely oldest-to-newest can waste effort on claims that are no longer collectible.
Will a one-time backlog cleanup keep AR days down?
A cleanup lowers AR days temporarily, but the number climbs again without a consistent ongoing follow-up cadence and front-end fixes. Lasting improvement combines clearing the backlog with sustained follow-up and prevention of the denials that create new aged AR.
How does Salt HealthOps help reduce AR days?
We provide co-managed AR follow-up capacity inside your existing system, holding a consistent follow-up cadence with QA review and weekly reporting on Days in AR, AR over 90 days, and claims worked. We baseline and report against your numbers rather than promising a specific result.