AR Days in Medical Billing
AR days, or Days in Accounts Receivable, is a metric used to measure how quickly a healthcare provider receives payment after services are rendered.
AR Days in Medical Billing Explained
AR days are calculated by dividing the total accounts receivable by the average daily charges. This metric helps healthcare providers assess the efficiency of their billing processes and identify areas where payment delays may be occurring. Lower AR days indicate faster collection of payments.
For example, a clinic monitors its AR days to ensure that claims are being processed and paid in a timely manner, aiming to reduce the number of days outstanding.
See common acronyms and abbreviations in Medical billing glossary.
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Years in Business
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