Outpatient Facility Coding Alert - 2016 Issue 4
How to Quickly Calculate Your Days in A/R
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Article Overview
This article introduces the concept of days in accounts receivable (A/R) as a revenue-cycle metric for medical practices. It explains the purpose of the measure, the basic calculation approach, and general factors that can influence what is considered a typical result across specialties and payer mixes. The content is aimed at practice administrators, billing staff, and physicians who want a simple way to understand collections performance.
Why This Topic Matters
Days in A/R is a commonly used benchmark for understanding how quickly a practice turns charges into cash. Knowing the metric helps practices communicate collection performance in a clearer, more meaningful way and compare results over time or against peers.
What You Will Learn
- What days in A/R measures in a medical practice setting
- Why practices use days in A/R as a benchmarking metric
- The general steps involved in calculating days in A/R
- How payer mix and specialty can affect interpretation of the metric
Who Should Read This
- Practice administrators
- Billing staff
- Revenue cycle teams
- Physicians
- Medical office managers
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