What are accepted standards for aging AR at different time frames, ex. 30-60 days, 60-90 days, 90-120, 120-180, 180+? We are working on a new process and procedures for following up with aging accounts, but wonder what a reasonable goal is for each time frame as a percentage of charges during that time frame. Thank you!
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Wiki Aging AR goals?
- Thread starter taandrews
- Start date
Many things are taken into consideration when setting AR goals for a billing office. The type of provider you are billing for, the insurance carriers, the contracts, etc.
A general guideline for most offices show 40-50% of collections within the first 45 days for a healthy revenue cycle, but as noted many items will play a role into how you define your standards.
- Does the contract allow for a longer processing time (exceeding 45 days?)
- Do you bill standard carriers, Medicare, Work Comp?
- An FQHC provider will have a much lower AR goal than that of a standard fee for service provider.
- Specialist vs. PCP, etc.
A general guideline for most offices show 40-50% of collections within the first 45 days for a healthy revenue cycle, but as noted many items will play a role into how you define your standards.