Keeping AR Under 90 Days: What High-Performing Practices Do Differently

Managing accounts receivable (AR) is one of the most critical but often overlooked elements of a successful healthcare practice. Outstanding AR beyond 90 days can tie up cash, disrupt operations, and increase write-offs. On the other hand, keeping AR under 90 days ensures healthy cash flow, better financial stability, and a more predictable revenue cycle.

For many practices, maintaining AR under 90 days feels like a constant uphill battle. Claims get delayed, denials creep in, patients have high balances, and insurance reimbursements lag. These delays aren’t just numbers on a spreadsheet they’re real operational stressors that impact staffing, growth, and patient care.

The good news is that high-performing practices don’t leave AR to chance. They actively monitor, control, and optimize their revenue cycle, using a combination of proven strategies, proactive workflows, and automation tools.

In this blog, we’ll explore:

• Why AR beyond 90 days is risky
  
• Common causes of delayed payments
  
• Strategies to keep AR under 90 days
  
• How technology and AI transform AR management
  
• Real-world examples of practices that succeed
  
• How Claimity helps practices optimize AR thresholds and improve cash flow
  

Why AR Beyond 90 Days Matters

Accounts receivable over 90 days represents a significant financial risk:

• Cash flow disruption: Delayed reimbursements reduce available working capital for operations, payroll, and investments.
  
• Increased write-offs: The longer a claim or patient balance remains unpaid, the more likely it is to be uncollectible.
  
• Administrative burden: Staff spend more time chasing overdue payments, impacting productivity.
  
• Operational strain: Delays in AR affect budgeting, financial planning, and business growth.

According to an MGMA Stat poll, a majority of medical practices (56%) reported that their days in accounts receivable increased in 2022 a clear signal that delayed reimbursements and aging A/R remain persistent financial challenges for practices.

Common Causes of AR Aging Beyond 90 Days

Understanding why AR stretches beyond 90 days is crucial for effective management. Typical causes include:

1. Incomplete or inaccurate claims – Missing patient information, incorrect codes, or incomplete documentation lead to delays or denials.
   
2. Slow payer response – Some insurers take longer to process claims, especially complex or high-value claims.
   
3. Patient payment delays – High patient balances, poor communication, or unclear statements can slow collections.
   
4. Lack of follow-up workflows – Without systematic follow-ups, overdue claims can slip through the cracks.
   
5. Limited visibility into AR metrics – Practices without dashboards or reporting can’t track aging effectively.

By identifying these root causes, practices can target interventions and improve collections before AR becomes a liability.

High-Performing Practices Keep AR Under 90 Days With These Strategies

High-performing practices don’t rely on luck they implement structured, proactive approaches to maintain AR efficiency.

1. Track AR Daily and Segment by Age

• Monitor AR in real-time using dashboards or reports
  
• Segment balances by 0–30, 31–60, 61–90, and over 90 days
  
• Identify which claims or patient accounts need immediate attention

This segmentation helps prioritize work and focus resources where they matter most.

2. Ensure Claims Accuracy Before Submission

• Verify patient data and insurance eligibility
  
• Conduct coding and documentation checks
  
• Submit complete, accurate claims to reduce denials

Claims accuracy is the foundation of AR control. High-performing practices catch errors before submission rather than chasing payments later.

3. Automate Follow-Up and Collections

• Use automated reminders for overdue claims and patient balances
  
• Create workflow rules for follow-up escalation
  
• Integrate notifications into billing dashboards

Automation reduces missed follow-ups, ensures consistent communication, and frees staff to handle higher-value tasks.

4. Prioritize High-Value Claims

• Identify claims or accounts with the largest outstanding balances
  
• Focus collection efforts on accounts with the highest revenue impact
  
• Use predictive analytics to estimate likelihood of payment and guide follow-ups

This targeted approach maximizes cash flow while minimizing administrative effort.

5. Communicate Effectively With Patients

• Provide clear statements and transparent billing explanations
  
• Offer flexible payment plans or digital payment options
  
• Train staff to handle patient inquiries efficiently

Effective patient communication not only improves collections but also enhances satisfaction and trust.

6. Monitor Payer Performance and Patterns

• Track turnaround times for different insurers
  
• Identify payers with consistently delayed payments
  
• Develop strategies to proactively address slow-processing payers

By understanding payer trends, practices can anticipate delays and reduce AR aging.

7. Implement AR Threshold Control

AR threshold control is about setting clear financial benchmarks and proactive monitoring.

• Establish AR aging targets (e.g., under 90 days)
  
• Automate alerts when balances exceed thresholds
  
• Track performance against internal benchmarks

This ensures the team addresses overdue accounts before they become a problem.

8. Leverage AI and Technology for AR Optimization

Modern tools make AR management smarter and faster:

• AI-driven dashboards highlight overdue claims and predict future AR risk
  
• Automated claims review ensures accurate submission
  
• Predictive analytics guide collection priorities
  
• Integration with EHR and billing platforms centralizes data and workflows

AI helps practices maintain AR under 90 days consistently while reducing manual effort and errors.

The Impact of Keeping AR Under 90 Days

When practices actively manage AR and keep it under 90 days, the results are clear:

• Improved cash flow: Timely collections provide reliable working capital
  
• Reduced write-offs: Fewer claims age into uncollectible territory
  
• Operational efficiency: Staff spend less time on collections and more on patient care
  
• Enhanced financial predictability: Management can plan budgets and investments with confidence
  
• Better patient experience: Faster, clear billing reduces confusion and dissatisfaction

Maintaining AR under 90 days isn’t just a metric it’s a financial strategy that impacts every aspect of practice operations.

Real-World Examples of AR Control in Action

Independent Practices

• Daily AR tracking and automated follow-ups
  
• Result: reduced over-90-day balances by 35% within six months

Specialty Clinics

• AI-driven pre-submission claim validation
  
• Result: faster claim acceptance and AR under 90 days maintained consistently

Multi-location Healthcare Organizations

• Centralized AR dashboards and payer performance monitoring
  
• Result: improved cash flow, reduced write-offs, and consistent revenue across locations

These examples demonstrate that structured AR management and technology adoption work across all practice types.

How Claimity Helps Practices Keep AR Under 90 Days

Claimity provides end-to-end AR optimization solutions:

• Real-time AR dashboards: Track aging, identify at-risk accounts, and monitor threshold compliance
  
• Automated follow-ups: Reduce manual effort and ensure no account slips through the cracks
  
• Pre-submission claim checks: Minimize denials and expedite payment
  
• Predictive analytics: Prioritize collection efforts for maximum impact
  
• Integration with EHR and billing systems: Centralize data for streamlined workflows

With Claimity, practices move from reactive AR management to proactive cash flow control, keeping balances under 90 days while enhancing operational efficiency.

Final Thoughts: AR Under 90 Days as a Performance Benchmark

Keeping AR under 90 days isn’t just a number to hit it’s a strategic advantage. Practices that proactively monitor AR, leverage automation, and implement structured workflows:

• Protect revenue and reduce write-offs
  
• Improve cash flow predictability
  
• Reduce administrative burden
  
• Enhance staff and patient satisfaction

Claimity empowers practices to maintain AR efficiency and financial health with AI-powered dashboards, automated workflows, and predictive insights.

High-performing practices don’t let AR drift; they control it. In 2025, maintaining AR under 90 days is not just best practice it’s essential for sustainable growth and operational excellence.

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