Reducing AR Days: Strategies High-Performing Hospitals Use
Accounts Receivable (AR) is one of the clearest indicators of financial health. High AR days signal cash flow delays, inefficiencies, or weak denial management practices. Successful healthcare organizations focus on a combination of clean claims, proactive follow-ups, accurate coding, and automated payment posting to reduce AR days.
Revenue leakage refers to money that providers should collect but don’t—often due to unnoticed errors in documentation, coding, billing, or payer behavior. Leakage can occur at any stage of the revenue cycle, making it a silent threat to financial stability.
One effective strategy is implementing daily AR worklists segmented by payer type and claim age. Analytics help identify which payers consistently delay payments or which claim categories require more aggressive follow-up. RPA bots streamline status checks and automatically update claim information across systems, allowing human staff to focus on complex cases. By combining technology with disciplined workflows, high-performing organizations consistently maintain low AR days and strong revenue predictability.