How do you calculate days in accounts receivable?

Days in A/R = Total A/R balance ÷ (Total charges for the period ÷ Number of days in the period). For example, if your A/R is $300,000 and you billed $250,000 over 30 days, your average daily charges are $8,333 and your days in A/R is 36 days.

What is a good days in A/R for a medical practice?

30 days or less is considered excellent. 31-40 days is good. 41-50 days is below average and indicates follow-up issues. Over 50 days is critical and usually means significant revenue is at risk of becoming uncollectable.

What happens when days in A/R is too high?

High days in A/R means cash is stuck in unpaid claims instead of in your bank account. Claims that age past 90 days have only a 20% chance of being collected. Past 120 days, that drops to less than 10%. High A/R also indicates potential timely filing risks.

How can I reduce my days in A/R?

Submit claims within 24-48 hours of service, verify eligibility before appointments, follow up on unpaid claims at 15, 30, and 45 days, appeal all denials promptly, collect patient responsibility at time of service, and use electronic claim submission and ERA enrollment for all payers.

Calculator Free Tool

Days in A/R Calculator

Enter your A/R balance and charge data to calculate your days in accounts receivable, compare to specialty-specific benchmarks, and see how much cash is tied up in aging claims.

Total Accounts Receivable Balance$320,000

$10K$3M

Total Charges for Period$250,000

$10K$2M

Charge Period Length

How to read your Days in A/R

Days in A/R measures how quickly you collect payment after providing services. Lower is better — it means cash is flowing into your practice faster. The industry target is 30 days or less.

Specialty Benchmarks

Family Medicine28–35 days

Orthopedics35–45 days

Cardiology30–40 days

Dermatology25–32 days

OB-GYN32–42 days

General Surgery35–48 days

Your Days in A/R

38.4 days

Good

≤30 = Excellent | 31–40 = Good

41–50 = Below Average | >50 = Critical

Average Daily Charges

$8,333

Excess A/R Above 30-Day Target

$70,000

This is cash that should already be in your bank account

Target A/R at 30 Days

$250,000

Atlas Billers clients average 28 days in A/R. We accelerate cash flow through clean claim submission, proactive follow-up, and aggressive denial resolution.

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Understanding Days in Accounts Receivable

Days in A/R is one of the most important cash flow metrics in medical billing. It measures the average number of days it takes your practice to collect payment after a service is rendered. Every additional day beyond the 30-day benchmark represents money sitting in unpaid claims instead of in your bank account.

How Days in A/R Is Calculated

The formula is straightforward: Total A/R Balance ÷ Average Daily Charges. Average daily charges are calculated by dividing your total charges for a period by the number of days in that period. For monthly calculations, divide your monthly charges by 30.

Why Every Day Matters

The longer a claim goes unpaid, the less likely it is to ever be collected:

0-30 days — 95%+ chance of collection
31-60 days — 85-90% chance of collection
61-90 days — 70-75% chance of collection
91-120 days — 50-55% chance of collection
Over 120 days — Less than 20% chance of collection

Benchmarks by Specialty

Days in A/R varies significantly by specialty due to differences in claim complexity, payer mix, and authorization requirements:

Primary Care / Family Medicine — 28-35 days (simpler claims, faster turnaround)
Dermatology — 25-32 days (high procedure volume, quick adjudication)
Cardiology — 30-40 days (complex procedures, frequent auth requirements)
Orthopedics — 35-45 days (surgical claims, global periods)
OB-GYN — 32-42 days (global maternity packages extend A/R)
General Surgery — 35-48 days (facility coordination, bundled payments)

How Atlas Billers Accelerates Cash Flow

Atlas Billers clients average just 28 days in A/R. We achieve this through same-day claim submission, automated eligibility verification, proactive follow-up starting at day 15 (not day 30), aggressive denial resolution within 24 hours, and electronic remittance enrollment with every payer. Faster payment means healthier cash flow for your practice.

Want These Numbers Improved?

Atlas Billers helps practices recover an average of $127K in their first year through optimized billing, denial management, and coding accuracy.

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