The A/R Trap: When Earned Revenue Stays Uncollected

How A/R Pressure Shows Up in Cash Flow

Visit volume and reported revenue may rise while cash becomes tighter. When that happens, A/R deserves a closer look.

You pull your A/R report. Days in A/R: 48 days. “That doesn’t seem too bad.”

Days in A/R shows how long earned revenue remains outstanding. The cash effect of reducing it depends on charge volume, payer mix, collection rate, and the age of the balances, so calculate the opportunity from the practice’s own receivables rather than a general rule of thumb.

Why A/R Creeps Up

A/R can rise for several reasons: delayed charge entry, payer processing time, denial follow-up, or a change in payer mix. Looking at the aging buckets and denial categories helps identify where the delay is occurring.

A More Useful Monthly Review

Review A/R days alongside aging, denials, charge lag, and collection rate. That combination is more useful than any single measure and helps leadership identify the next question to investigate.