What is an acceptable percentage of Accounts Receivable (A/R) over 90 days in healthcare?
According to the Healthcare Financial Management Association (HFMA) and MGMA benchmarks, high-performing medical practices keep aging Accounts Receivable over 90 days below 10% to 15% of total A/R. If more than 20% of your practice's outstanding receivables are older than 90 days, immediate revenue cycle intervention is required.
1. The Anatomy of an A/R Aging Report
An A/R aging report divides outstanding practice revenue into standard aging buckets: 0-30 days, 31-60 days, 61-90 days, and 91+ days.
Healthy benchmark distribution for independent medical practices:
• 0-30 Days: 55% - 65% of total A/R
• 31-60 Days: 20% - 25% of total A/R
• 61-90 Days: 10% - 15% of total A/R
• >90 Days: Less than 12% of total A/R
2. The 4 Proven Workflows to Liquidate Stalled A/R
How Med Billing Solution systematically recovers aged balances
Our Paramus, NJ team uses a 4-step liquidation methodology:
- Workflow 1: 14-Day Post-Transmission Payer Verification – Verify receipt of electronic 837 files within 14 days, well before standard 30-day payment cycles.
- Workflow 2: Dollar-Value & Timely-Filing Triage – Sort open balances so high-dollar claims approaching timely filing cutoff dates are resolved first.
- Workflow 3: Batch Payer Teleconferences – Engage dedicated payer provider representatives with lists of 20+ stalled claims for immediate mass adjudication.
- Workflow 4: Root Cause Feedback Loop – If an insurer systematically underpays a specific CPT modifier, update practice billing rules instantly to prevent future aging.
3. Calculating Your Practice Days in A/R
Formula: Total Accounts Receivable ÷ (Total Gross Charges Submitted over Past 365 Days ÷ 365).
If your calculation exceeds 45 days, your practice is effectively providing interest-free loans to insurance companies. Contact Med Billing Solution LLC for a complimentary A/R analysis.