Blog · A/R ·
How to read your A/R aging report
Your accounts receivable (A/R) aging report is one of the most useful reports your practice has. It shows how much money is owed to you and how long it has been waiting. Here is how to read it.
What the report shows
The report groups unpaid balances into age buckets, usually 0–30, 31–60, 61–90, 91–120 and over 120 days. Age is normally counted from the date of service or the date the claim was first billed. Check which one your system uses, because it changes how you read the numbers.
Most reports also split balances by payer and by responsibility: what insurance owes versus what patients owe.
What healthy looks like
In general, you want most of your A/R in the younger buckets. Money in the 0–30 bucket is normal; it reflects claims that have just been sent. As balances move into older buckets, the chance of collecting them goes down and the work needed goes up.
Five things to look for
1. Growth in the older buckets. If 90+ day balances are rising month over month, follow-up is not keeping up. 2. One payer with a large old balance. This often points to a credentialing problem, a contract issue or a recurring denial. 3. Credit balances. Overpayments sitting on accounts need to be reviewed and, where required, refunded. 4. Patient balances that never move. This may mean statements are not going out or payment options are unclear. 5. Claims with no response. A claim that is old but never denied or paid may never have reached the payer.
Turning the report into action
- Sort the oldest buckets by balance and work the largest collectible claims first. - Check filing and appeal deadlines for each payer before deciding what is still collectible. - Look for patterns by payer or reason, and fix the cause. - Track the same report every month so you can see whether things are improving.
A note on days in A/R
Days in A/R is a related measure: roughly, how many days of charges are sitting unpaid. It is a useful single number, but the aging report tells you where the problem is. Use both together.