How to Fix High A/R Days in Your Practice: A 7-Step RCM Roadmap

High Accounts Receivable days are a common challenge for medical practices and a clear sign that payments are moving too slowly. Usually, A/R days should stay under 40, but many practices struggle with balances aging beyond 60 or 90 days. In fact, each delay ties up revenue, affects cash flow, and increases the chances of unpaid claims.

Studies also show that medical practices can lose a significant portion of their revenue due to billing errors, denials, delayed submissions, and weak follow-up processes. As a result, these issues create financial pressure and add to the administrative workload.

Did you know that the reason high A/R days persist is that problems rarely occur in just one area? But small gaps in registration, documentation, coding, claim submission, payment posting, and patient collections slowly build up and disrupt the entire revenue cycle. This indicates the need to fix these issues at the earliest.

Keeping this need in mind, this blog will discuss a clear 7-step RCM roadmap to help medical practices reduce high A/R days, improve reimbursement speed, and build a more stable, efficient revenue cycle.

The 7-Step RCM Roadmap to Reduce High A/R Days

Reducing high Accounts Receivable days requires a structured revenue cycle strategy rather than isolated fixes. As every stage of the RCM process is connected, delays at any point slow down reimbursements across the system. This seven-step roadmap emphasizes accuracy, consistency, automation, and proactive follow-up to keep claims moving without interruption. When these steps are applied together, medical practices can shorten payment timelines, lower denial rates, and maintain steady cash flow.

Step 1: Front-End Accuracy

High A/R days often originate at the patient registration stage. Thereby, collecting accurate demographic and insurance information before the visit is essential. In fact, real-time eligibility verification confirms active coverage and clarifies benefits in advance. Additionally, validating referrals and authorizations prevents avoidable claim rejections. They are more prepared to pay when patients understand their financial responsibility early. As a result, claims enter the billing cycle correctly from the start. This reduces rework, limits delays, and prevents minor errors from extending A/R days later in the process.

Step 2: Complete Charge Capture

Missed or delayed charges directly contribute to extended A/R days. As a result, all billable services must be captured accurately at the point of care. Standardized workflows help ensure consistency across providers and departments. Moreover, aligning clinical teams with billing processes reduces gaps between care delivery and charge entry. When charges are recorded promptly, claims move forward without unnecessary hold-ups. Consequently, this step shortens the time between service delivery and claim submission, supporting faster reimbursement and improved cash flow.

Step 3: Accurate Coding and Documentation

Coding accuracy depends on strong clinical documentation. Clear and complete notes support medical necessity and appropriate code selection. At the same time, correct modifiers and code sequencing help meet payer requirements. When coding aligns with documentation, claims are less likely to be denied or delayed. Regular reviews also help identify recurring issues before they impact revenue. This step improves first-pass claim acceptance, reduces follow-up efforts, and prevents claims from aging in A/R due to avoidable coding-related delays.

Step 4: Timely Claim Submission

Even clean claims lose value when submission is delayed. This indicates that the claims should be submitted as soon as possible after the visit. In fact, automated submission tools help maintain consistency and reduce manual effort. Additionally, built-in checks identify errors before claims reach the payer. When submission timelines are standardized, reimbursement cycles become more predictable. As a result, claims enter payer processing sooner and move through adjudication faster. This directly reduces A/R days by eliminating unnecessary waiting periods.

Step 5: Automated Payment Posting

Timely payment posting ensures accurate visibility into outstanding balances. Automation speeds up posting and minimizes manual errors. Additionally, quick reconciliation helps identify underpayments or discrepancies early. In fact, unpaid claims are easier to track and follow up on when payments are posted promptly. This clarity prevents overlooked balances from aging unnecessarily. As a result, automated posting supports better financial oversight and helps keep A/R days under control.

Step 6: Proactive Denial and A/R Management

Denials should be addressed through prevention and timely action. Analyzing denial trends helps identify root causes and improve processes. At the same time, segmenting A/R by age and payer allows teams to focus on high-priority accounts. In fact, consistent follow-ups prevent claims from stalling beyond appeal limits. When proactive strategies replace reactive responses, recovery rates improve. Consequently, fewer claims age past critical thresholds, leading to lower A/R days and stronger revenue performance.

Step 7: Patient Financial Engagement

Patient balances now account for a larger portion of A/R. Clear communication about costs helps patients understand their responsibility. Moreover, offering flexible and convenient payment options encourages faster payments. Automated reminders further reduce delays without increasing staff workload. When patients can easily review and settle balances, collections improve. This approach reduces self-pay aging, strengthens patient trust, and plays a vital role in lowering overall A/R days.

Additional Step: Outsourcing RCM to 24/7 Medical Billing Services

After strengthening internal workflows across registration, coding, claims submission, and follow-up, many practices reach a point at which sustaining results becomes difficult with limited resources. At this stage, outsourcing revenue cycle management serves as a strategic extension of the existing RCM roadmap rather than a replacement. It builds upon the earlier steps by ensuring front-end accuracy, clean claims, and timely submissions are executed consistently without interruption. This continuity helps prevent gaps that often lead to rising A/R days when internal teams are stretched thin.

In fact, medical practices can gain access to experienced billing specialists by outsourcing medical billing and coding services to 24/7 Medical Billing Services, thereby enabling faster reimbursements. Their dedicated teams proactively monitor denials, manage A/R follow-ups, and track performance metrics to prevent delays from escalating. Additionally, scalable support allows practices to adapt to growth and regulatory changes without operational strain. As a result, outsourcing reinforces every step of the RCM process, stabilizes cash flow, and allows providers to focus more fully on delivering quality patient care.

FAQs

Why do older A/R balances become harder to collect?

As claims age, appeal windows close and recovery chances drop significantly.

How does the timing of payer follow-up affect collections?

Late follow-ups can stall claims, increasing the risk of denial and write-offs.

What role do audits play in controlling A/R?

Regular audits help identify hidden issues that delay or block payments.