Accounts Receivable (A/R) Aging
A/R Aging is the breakdown of outstanding patient and payer balances by the number of days since the date of service or date of billing. Standard aging buckets are 0-30, 31-60, 61-90, 91-120, and over-120 days.
Definition.
A/R Aging is one of the two foundational reports in revenue cycle (with the rate report). The aging tells you where your unpaid revenue is sitting, by age. Old A/R has lower collection probability; aged A/R needs working before it ages further into write-off territory.
Key points.
Date of service vs date of posting aging
Date of service (DOS) aging measures from when the service was delivered. Date of posting aging measures from when the claim was entered into the billing system. DOS aging tells the truth about cash velocity; date of posting aging buries problems by restarting the clock every time a claim is touched.
Healthy A/R aging benchmarks
Physician practice: <20% over 90 days. Hospital outpatient: <25% over 90 days. ABA: <22% over 90 days. SNF: <30% over 90 days (Medicaid pending drives the difference). Behavioral health outpatient: <30% over 90 days.
Working aged A/R
Standard workflow: 0-30 days = wait. 31-60 = light touch (status check). 61-90 = first call/appeal. 91-120 = escalation. Over 120 = senior partner review for write-off vs continued pursuit.
Patient A/R vs payer A/R
Patient A/R requires statement cadence, payment plan offers, and (eventually) collections workflow. Payer A/R requires appeals, status calls, and contract enforcement. Different workflows, different teams.
Where AI helps A/R
AI prioritization of work queues by payment likelihood, balance size, and account age. Reduces wasted effort on uncollectible accounts; concentrates work where it pays.