Accounts Receivable A/R
Money owed to a provider for services already delivered — by payers and patients — that has not yet been collected.
Accounts receivable (A/R) is the total value of billed (and sometimes unbilled) services that have not yet been paid. In healthcare, A/R is owed by insurance companies, government programs and patients.
How A/R is measured
- Days in A/R — total A/R divided by average daily gross charges. It estimates how long it takes, on average, to collect.
- A/R aging — balances grouped by age (0–30, 31–60, 61–90, 91–120, over 120 days). Older balances are harder to collect.
- A/R by payer and by financial class — shows where collection problems are concentrated.
Why A/R matters to coders
Coding delays, coding errors and missing documentation hold claims back or trigger denials, which increases A/R. A coding backlog shows up directly in DNFB (discharged, not final billed) and indirectly in days in A/R.
Managing A/R
A/R teams prioritize follow-up by dollar value, age and likelihood of payment; work denials by root cause; track payer underpayments against contracts; and reconcile patient balances. See our guide to revenue cycle management.