As you know, accounts Receivable (A/R) is generally grouped into aging buckets based on 30-day increments of elapsed time (30, 60, 90, 120 days). All A/R aged over 90 days falls in the inclusive A/R >90 day bucket. I’m often asked, what is a reasonable benchmark for receivables over 90 days old. Answer – 18-22% of total accounts receivable.
A/R >90 days is a clear indicator of how effective your practice is at securing reimbursements in a timely manner. High or rising percentages are red flags alerting you of issues with your practice’s revenue cycle management (e.g., your staff may not be acting quickly enough on denials or aged claims) that need to be addressed promptly. If you’re having difficulty collecting on claims before 90 days, it may be time to consider outsourcing your revenue cycle management.