How it works
Every charge enters A/R when it is billed and leaves it when it is paid, adjusted or written off. A/R is usually reported in an aging report that groups balances by how long they have been outstanding — 0–30, 31–60, 61–90, 91–120 and over 120 days — and separates insurance balances from patient balances, often by payer.
Why it matters
The total matters less than its age. Recent A/R is normal; old A/R is at risk, because claims approach filing and appeal deadlines and patient balances become harder to collect. A growing share of balances over 90 days is one of the clearest signs that follow-up is not keeping up.
Example
Two practices each have the same total A/R. In one, most of it is under 30 days; in the other, a large share is over 120 days. The second practice has a much bigger problem. See A/R management.