Reducing Days in A/R: Proven Tactics....

Learn practical tactics to reduce Days in A/R, minimize denials, and accelerate hospital reimbursements with expert AR management solutions and medical AR services.

1. Reducing Days in A/R: Proven Tactics

2. CONTENTS
`. Introduction a. Why Reducing A/R
Days Matters
b. Common Causes of
Rising A/R Days
c. Strategy /#` ‒
Streamline Claim
Submission
d. Strategy /#a ‒
Strengthen Denial
Management
e. Strategy /#b ‒
Optimize Patient
Collections
f. Strategy /#c ‒
Outsource AR
Management Expertise
g. Key Takeaways
h. References

3. `. Introduction
Days in Accounts Receivable (A/R) is one of the most important metrics for hospital
financial health. A lower number of A/R days means faster payments and stronger cash
flow. However, complex payer requirements, claim denials, and workflow inefficiencies
often delay collections. Implementing effective AR management solutions helps
healthcare providers streamline billing and shorten payment cycles.

4. a. Why Reducing A/R Days Matters
Each day an outstanding claim remains unpaid increases operational costs and impacts cash reserves. According to the Healthcare Financial
Management Association (HFMA), high-performing hospitals maintain their A/R days under . Optimized medical AR services ensure that
claims are processed quickly, verified accurately, and followed up consistently, improving both revenue and compliance.

5. b. Common Causes of Rising A/R
Days
Rising A/R days often stem from incorrect coding, delayed claim submission, incomplete
documentation, and inadequate follow-up. These gaps cause denials and resubmissions,
significantly delaying payments. By identifying these patterns early, hospitals can
implement proactive hospital accounts receivable solutions to prevent backlogs and
revenue leakage.

6. c. Strategy /#` ‒ Streamline Claim
Submission
Automating the claim submission process minimizes manual errors and accelerates
reimbursements. Integrated billing software and medical AR management services can
validate claims against payer rules in real-time, reducing rejections. Establishing
electronic data interchange (EDI) connectivity with payers further improves submission
speed and accuracy.

7. d. Strategy /#a ‒ Strengthen Denial Management
A strong denial management strategy involves identifying the root cause of rejections, categorizing them by type, and implementing
preventive measures. Hospitals that adopt proactive denial tracking with specialized hospital accounts receivable companies can reduce A/R
days by up to %. Regular denial analysis also helps staff understand trends and correct recurring issues.

8. e. Strategy /#b ‒ Optimize Patient
Collections
With patient financial responsibility rising, clear communication and easy payment
options are key. Implementing online payment portals, transparent cost estimates, and
reminder systems help speed up patient payments. Leveraging AR management
solutions with built-in patient engagement tools ensures consistent follow-up and higher
collection rates.

9. f. Strategy /#c ‒ Outsource AR
Management Expertise
Outsourcing AR functions to an experienced hospital accounts receivable company can
dramatically reduce A/R days. Outsourced teams bring specialized knowledge, dedicated
resources, and data-driven workflows that internal teams may lack. AnnexMed’s AR
Management Services provide healthcare organizations with end-to-end medical AR
management to improve efficiency and reduce outstanding receivables.

10. g. Key Takeaways
Reducing A/R days is achievable through a structured, technology-driven approach.
Hospitals that automate billing, manage denials proactively, and leverage expert
medical AR services experience improved revenue cycle performance. Continuous
monitoring and timely follow-ups are critical to maintaining low A/R days and ensuring
consistent cash flow.

11. h. References
`
Healthcare Financial Management Association (HFMA)
a
Medical Group Management Association (MGMA)
b
Becker’s Hospital Review ‒ Revenue Cycle Insights

12. Thank You