Days in AR measures the average time it takes to collect payment after a service is rendered. It is one of the most revealing indicators of revenue cycle health.
A healthy benchmark for most practices is under 40 days. When that number climbs, it signals that claims are sitting unpaid longer than they should, which directly tightens cash flow.
To improve days in AR, work aging buckets proactively, prioritize high-value and near-timely-filing claims, and resolve denials quickly rather than letting them pile up. Transparent monthly reporting keeps the metric visible so problems are caught early.