Identify and address root causes of AR aging, such as denials, missing information, and inefficient follow-up processes.
Insights / Denials
Recover AR Over 90 Days with Data-Driven Strategies
Sriram Raghavan · July 4, 2026 · 8 min read
The short version
If you read nothing else on this page.
Develop a structured recovery plan that includes regular analysis and follow-up on outstanding claims.
Technology streamlines processes, improves communication, and enhances data analysis.
Establish relationships with payers to facilitate communication and resolve issues more efficiently.
When days in AR exceed 90, every additional day costs your practice real money. To start recovering, you need to identify the root causes of your AR aging issues, such as denials, missing information, or inefficient follow-up processes. For instance, a common denial reason is CO-50, which indicates that the service is not covered or is not medically necessary. This can be avoided by verifying patient eligibility and coverage before providing services and ensuring all necessary documentation is in place.
What are the most common causes of AR aging?
Most denials stem from eligibility or coverage issues, missing prior authorizations, coding errors, and insufficient documentation. The Centers for Medicare and Medicaid Services (CMS) lists CO-50 as a common denial reason. To avoid this, verify patient eligibility and coverage before providing services. Regularly review coding and billing processes to identify and address errors or inconsistencies.
A key step in reducing AR aging is monitoring and analyzing your practice's AR performance regularly. Track metrics like AR days, clean claim rate, and denial rate. This helps identify areas for improvement and take corrective action. If a high percentage of claims are denied due to missing information, implement a process to ensure all necessary documentation is included with the initial claim submission.
How can you create an effective AR recovery plan?
To create an effective AR recovery plan, understand your practice's specific needs and challenges. Analyze AR data to identify trends and patterns, such as which payers frequently deny claims or which services are often subject to reimbursement disputes. Develop targeted strategies to address these issues, such as implementing additional documentation requirements for certain services or establishing a process for appealing denied claims.
For example, if analysis reveals a significant portion of AR over 90 days is due to denials from a particular payer, focus on improving claims submission for that payer. Ensure all necessary information is included and claims are submitted timely. Establishing a relationship with the payer's representative can facilitate communication and resolve issues more efficiently.
Follow-up is crucial in an effective AR recovery plan. Regularly review and follow up on outstanding claims, including denied or pending reimbursement claims. This ensures claims are not forgotten or overlooked and reimbursement is received timely. Establish a schedule to review and follow up on claims every 30 days, using a combination of phone calls, emails, and online portals to communicate with payers.
What role does technology play in AR recovery?
Technology streamlines processes, improves communication, and enhances data analysis. Practice management systems automate tasks like claims submission and follow-up, reducing administrative burdens and minimizing error risks. Electronic health records (EHRs) ensure necessary documentation is in place and easily accessible, reducing denials due to missing information.
Advanced analytics and reporting tools provide deeper insights into AR performance, identifying trends and patterns that might not be immediately apparent. This enables practices to make data-driven decisions and develop effective strategies for reducing AR aging. For instance, a practice might use analytics to identify services frequently subject to reimbursement disputes and develop targeted strategies, such as implementing additional documentation requirements or establishing a process for appealing denied claims.
Questions, answered
What is the average denial rate for medical practices?+
Denial rates range from 5-10%, depending on the practice's circumstances, such as services provided and payers involved. Understanding common denial causes and implementing strategies to address these issues can reduce denial rates and improve AR performance.
How can I reduce my practice's AR days?+
Reduce AR days by identifying and addressing root causes of AR aging, such as denials, missing information, and inefficient follow-up processes. Develop a structured recovery plan that includes regular analysis and follow-up on outstanding claims, and use technology to streamline processes and improve communication.
What is the best way to follow up on outstanding claims?+
Establish a regular schedule, such as every 30 days, and use a combination of communication methods, such as phone calls, emails, and online portals. This ensures claims are not forgotten or overlooked and reimbursement is received timely.
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