The Real Cost of Aging AR: What 90+ Days Means for Your Bottom Line

Accounts receivable (AR) that stretch beyond 90 days are more than an accounting issue—they're a direct threat to your hospital's cash flow, financial planning, and payer relationships.

The Financial Drag of Aging AR

Every day a claim sits unpaid, the probability of collection drops. Industry data shows that:

• Claims over 90 days old have less than a 15% chance of being paid in full.

• Aging AR drives up the cost to collect due to rework, escalations, and follow-up.

• High AR balances tie up capital that could be used for staffing, equipment, or expansion.

Hospitals carrying a high percentage of 90+ day AR often experience increased bad debt and impaired forecasting accuracy.

Why Claims Age Out

Common contributors to aging AR include:

• Incomplete or inaccurate claim submissions

• Delayed denial resolution or appeal processes

• Lack of timely follow-up due to staff constraints

• Poor visibility into claim status and payer behavior

The Strategic Fix: Process + Accountability

Reducing aging AR requires more than working older claims. It takes a proactive strategy built on:

• Daily Worklists: Prioritize follow-up by payer and dollar value.

• Root Cause Analysis: Address patterns causing delays, such as specific codes or providers.

• Denial Management: Resolve issues before they age out of appeal windows.

• AR Segmentation: Assign resources based on claim age, balance, and payer type.

Measure What Matters

Key metrics to monitor:

• Percentage of AR over 90 days

• Average days in AR

• Recovery rate by age bucket

• Follow-up rate and timeliness

Code Quick helps hospitals recover aging AR with focused workflows, root cause insights, and real-time performance tracking—so you can turn delayed revenue into banked revenue.