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Financial metrics

What is Days in AR?

Also called: days in accounts receivable · A/R days · DSO healthcare

Days in accounts receivable measures the average time between billing a service and collecting payment. It is calculated as total accounts receivable divided by average daily charges. It is the single best summary indicator of revenue cycle health, because every upstream failure eventually shows up in it.

Read it alongside the aging distribution, never alone. A practice can hold a respectable average while carrying a large, unworkable balance beyond 120 days, because a high volume of fast-paying small claims disguises the aged tail.

The percentage of AR over 90 days is the more honest metric. That is where collectability falls sharply and where timely filing deadlines start expiring.

Example

A practice with $420,000 in AR and $17,500 in average daily charges has 24 days in AR.

Where Vizora handles this

Primary sources

Where "Days in AR" is defined by the bodies that set the rules, rather than by us.

  • MGMA DataDive and MGMA Stat (opens in a new tab)

    Medical Group Management AssociationThe practice-level operations benchmarks — days in AR, denial rate, cost to collect — that physician groups are actually measured against.

  • MAP Keys revenue cycle metrics (opens in a new tab)

    Healthcare Financial Management AssociationStandard definitions for revenue cycle KPIs. Worth reading precisely because HFMA defines the metrics without publishing public target values — a distinction most vendor marketing ignores.

Last reviewed August 20, 2026

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