Steps to Reduce OB/GYN Practice Accounts Receivable Days
by BillingFreedom | Jan 23, 2025

Accounts Receivable (AR) Days in OBGYN medical billing refer to the average number of days it takes for a healthcare provider to receive payment after a claim is submitted. This key performance metric measures how efficiently a medical practice collects revenue owed for services rendered.
High AR Days can indicate potential issues, such as billing errors, claim denials, or inefficient processes. By optimizing billing practices, reducing claim rejections, and improving patient communication, OB/GYN practices can significantly lower their AR days and enhance financial stability.
How Do You Calculate The Accounts Receivable (AR) Days in Healthcare for OBGYN Medical Billing?
Calculating Accounts Receivable (AR) Days for an OBGYN medical center uses the same general method as for any healthcare provider. Still, it focuses on the specific services provided by the OBGYN billing services.
Here's how to calculate AR Days step-by-step for an OBGYN medical center:
Formula for OBGYN practice accounts receivable days
AR Days=(Average Daily Charges/Total Accounts Receivable)
Step-by-Step Calculation
- Determine Total Accounts Receivable (AR)
- This is the total outstanding amount owed to the OBGYN medical center for services rendered but not yet paid. It includes amounts from both insurance companies and patients.
- You will typically find this data in the financial reports or accounting system of the OBGYN center.
- Calculate Average Daily Charges
- Total Charges: This refers to the amount billed by the OBGYN medical center during a specific period (e.g., a month, quarter, or year).
- Average Daily Charges: To find the average daily charges, divide the total charges for a specific period by the number of days.
Formula:
Average Daily Charges = Total Charges for a Period ÷ Number of Days in the Period
Example:
If the total charges for the month are $300,000 and the month has 30 days, the average daily charges would be:
Average Daily Charges = 300,000 ÷ 30 = 10,000
- Calculate AR Days: Now that you have both Total Accounts Receivable and Average Daily Charges, use the following formula to calculate AR Days:
Formula:
AR Days = Total Accounts Receivable ÷ Average Daily Charges
Interpreting AR Days
- Low AR Days: A lower AR Days figure indicates that the medical center collects payments from patients and insurance companies more quickly. AR Days of 30-40 days in healthcare are generally considered good, depending on the payer mix.
- High AR Days: If the AR Days are higher than the ideal range, it may suggest delays in claim processing, issues with coding, insurance denials, or inefficiencies in the billing process.
Factors Influencing AR Days in OBGYN Practices
- Insurance Payer Mix: Insurance companies pay at different speeds, so the OBGYN practice may have varying timelines based on the insurance plans.
- Type of Services Provided: Certain procedures (e.g., surgeries and prenatal care) might have longer billing cycles or more complex reimbursement processes, affecting AR Days.
- Patient Payments: Patients may delay paying their co-pays, deductibles, or balances after insurance payment, which could also increase AR Days.
- Claim Denials and Resubmissions: Denied or rejected claims must be resolved, which can increase AR Days if not addressed promptly.
10 Major Steps to Reduce OB/GYN Practice Accounts Receivable Days
Implementing streamlined processes and strategies is essential to effectively managing accounts receivable (AR) and reducing AR Days in an OB/GYN practice. This ensures that payments are collected more quickly, improving cash flow and reducing the time spent waiting for reimbursements from patients and insurance companies. Steps which may taken are:
Streamline Billing and Coding Process
Billing and coding errors are one of the main reasons for delayed payments. By ensuring that every service is correctly coded and submitted right after the patient visits, you reduce the chances of claim denials and speed up the payment process.
Submit Claims Quickly
The faster you submit claims to insurance companies, the quicker you'll receive payments. To avoid unnecessary delays, aim to submit all claims within 24 to 48 hours after the patient visit or procedure.
Verify Insurance Information Early
Confirm the patient’s insurance details, coverage, and eligibility before the appointment. This will help avoid unexpected denials and payment delays once claims are submitted.
Follow Up on Unpaid Claims
If payments are not received within a specific period (e.g., 30 days), actively follow up with insurance companies. Proactively tracking and addressing unpaid claims can prevent them from getting stuck in the system.
Offer Payment Plans to Patients
Offering a structured payment plan can reduce the likelihood of overdue accounts for patients who can't pay their balances in full. This will help improve the overall collection rate and reduce patient-related AR.
Improve Patient Billing Communication
Make sure patients are clear on their financial responsibilities from the start. Providing upfront estimates and sending clear, easy-to-understand billing statements can prevent confusion and encourage timely payments.
Use Technology for Automated Reminders
Implementing automated reminder systems through your practice management software can gently remind patients about outstanding balances. This reduces manual follow-up and ensures timely payments.
Train Staff Regularly
It is critical to regularly train your administrative and billing staff on best practices for accounts receivable management. An educated team will be better equipped to prevent errors and efficiently follow up on unpaid accounts.
Focus on Denial Management
Denials are common in healthcare, but with an organized denial management system, you can quickly identify why claims were denied and address the issue. This allows you to resubmit claims promptly and avoid unnecessary delays.
Outsource Collections When Necessary
If AR Days remain high despite internal efforts, outsourcing collections to a third-party service can help recover overdue payments more quickly. This can relieve internal staff from handling complex cases and improve cash flow.
How BillingFreedom Can Reduce AR Days of OBGYN Practice by 98 Percent?
By implementing streamlined and efficient billing processes, BillingFreedom provides OBGYN AR management services to help OBGYN practices significantly reduce AR Days by up to 98%. By ensuring accurate coding, timely claim submissions, and thorough insurance verification before appointments, BillingFreedom minimizes payment delays. The system also actively tracks unpaid claims, following up promptly with insurance companies and patients. With automated reminders and trained billing staff, practices experience fewer denials and faster resolutions.
Maximizing OBGYN Practice Revenue with BillingFreedom
Moreover, BillingFreedom maximizes revenue by providing a comprehensive approach to financial management, including structured payment plans for patients and focused denial management. Their expert team efficiently handles claims, minimizes administrative errors, and ensures that all payments are collected swiftly, ultimately improving cash flow and reducing the time spent waiting for reimbursements.
For more details about our exceptional accounts receivable management services, please don't hesitate to email us at info@billingfreedom.com or call us at +1 (855) 415-3472.
Call us now:Get a Quote

Ready to Boost Your Revenue?
Save your hard earned money, register, before it's gone.