Accounts Receivable (A/R) Key Indicators

Find out how healthy your accounts receivable are by using benchmarks for key measurements.

Instructions:

Enter some data about your practice in the squares below. Results of your key measurements will be calculated automatically. To gauge the health of your A/R, perform this measurements monthly.

Enter Data Below:

Gross Charges (Annual):
Collections (Annual):
Grand Total A/R:
A/R Over 120 Days:
No. Of Physicians:

Key Indicators	Your Results	Interpretation of Your Results
Days in A/R:		If under 45 days: Good job! Measure again next month. If over 45 days: Review your processes. It is taking you too long. If over 60 days: Alert! You are losing money, but it's easy to improve.
A/R per physician:		If this number is more than 1.5 times your monthly charges, review your processes.
% of A/R over 120 days old:		If this number is more than 25%, you need to review your processes.
Gross Collection Rate:		If this number if lower than 60%, you need to review your processes. However, if your fees are set higher than 300% of Medicare, you may have a lower collection rate than the benchmark simply because your fees are higher than the norm.