Days in AR is the earliest warning signal in the revenue cycle. Compute yours the standard way — total AR divided by average daily charges — and see how much cash is locked up.
All outstanding insurance + patient balances from your PM system aging report
Use a 3–6 month average to smooth seasonality
Best practice: under 15–20% of total AR
Net collectible share of gross charges after contractual adjustments (varies widely by specialty and payer mix)
Standard formula: Total AR ÷ (monthly charges ÷ 30). Benchmarks per HFMA MAP Keys and MGMA — see our methodology.
Read the AR Recovery Guide →