How to Lower Your Practice’s Days in AR This Quarter

By Joshlen Jane

Medical practices in Delaware often face challenges managing a high volume of patient flow alongside a huge administrative load. The complex billing and insurance processes further add to these difficulties. According to a recent report by KFF, the claim denial rate in Delaware is 14%.

Due to such a high claim denial rate, the average number of days in accounts receivable (AR days) ranges between 30 to 70 days. Practices with AR days exceeding 50 may face financial strain, as delays in reimbursements can limit their ability to invest in quality care and necessary upgrades.

To solve these challenges, many practices turn to medical billing services in Delaware for professional support in streamlining billing processes and reducing AR days. In this blog, we will explore seven effective strategies that medical practices can implement this quarter to lower their AR days. 

Best Strategies to Reduce AR Days in a Medical Practices

Adopting the right strategies can significantly enhance your AR efficiency. Below are tested methods that can bring measurable financial improvements in your practice by reducing AR days:

1. Outsource Medical Billing Services

The most effective strategy is to outsource medical billing to a professional medical billing company. These companies manage the entire billing cycle, from patient eligibility verification and medical coding to electronic claim submission, clearinghouse processing, denial management, and AR follow-up. Additionally, they use automation to minimize errors, track AR proactively, and ensure claims are processed efficiently, helping your practice reduce AR days.

2. Maintain Strong Front Office Controls

Monitor front-office staff duties to ensure administrative tasks don’t overwhelm them. Reducing their burden allows timely collection of payments at the front desk. Moreover, front-desk staff must be trained to collect complete and validated demographic details, including correct  names, insurance IDs, and contact details. The best practice is to use digital check-in systems as it can reduce manual errors.

3. Verify Eligibility and Benefits Early

Confirm a patient’s insurance status, copays, deductibles, and primary coverage before the visit. Also, make sure your practice is considered in-network for the patient’s insurance plan. This verification, done through payer portals or calls, helps prevent claim denials, avoids billing surprises for patients, and ensures smoother reimbursement. Ideally, eligibility should be checked a day or two before the appointment.

4. Automate Your Practice Management System (PMS)

Use all available features of your PMS, including automated eligibility checks, benefits verification, and claims tracking. Proper use of automation minimizes manual errors, accelerates scheduling, billing, and claims submission, and ensures your practice operates efficiently. Additionally, implement a system to regularly track and review Average AR Days and other key financial metrics to monitor performance and identify areas for improvement.

5. Collect Upfront Balances Dues

Consider training your front-desk staff to collect copays, deductibles, and any outstanding balances at the time of service. Many patients now have high-deductible health plans, so they pay more out of pocket. Set clear policies in place for collecting these amounts during visits, and ensure this process is followed to reduce late payments and avoid complex billing later.

6. Monitor Key Performance Indicators (KPIs) Consistently

Financial managers should track Days in A/R to understand how long it takes to receive reimbursements. They should also monitor KPIs, like Net Collection Rate, Denial Rates to evaluate revenue cycle efficiency. It is also important to break down receivables into aging buckets—0–30, 31–60, 61–90, and 90+ days, and assign team members or vendors to focus on each category. 

7. Submit Claims Within 4 days

Send claims within four days of service to the payer. Early submission ensures timely verification, speeds up processing, and allows more time for fixing any claim issues. Rapid filing reduces AR days and increases the likelihood of getting paid for services rendered without unnecessary delays. If a claim is not clean, early submission also provides sufficient time to re-appeal.

Bottom Line

Reducing AR days is essential for maintaining financial stability and improving cash flow in any medical practice. By implementing these seven strategies, practices in Delaware can streamline revenue cycles, minimize claim denials, and ensure timely reimbursements. Consistent application of these methods helps your team focus on patient care while keeping your finances healthy and sustainable.

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