How to Reduce Days in A/R with Smart Denial Management Strategies

 Timely reimbursement is the lifeblood of a financially healthy medical practice. Yet, increasing Days in Accounts Receivable (A/R) continues to be one of the most pressing revenue cycle issues for healthcare providers. One of the major culprits behind this issue? Denials.

In this blog, we explore how strategic denial management not only reduces days in A/R but also improves cash flow and strengthens your bottom line.

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Understanding Days in A/R

Days in A/R refers to the average number of days it takes for a practice to collect payments due after services have been provided. Industry benchmarks typically suggest keeping A/R days under 35. Anything higher signals inefficiencies - and likely unresolved denials.

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How Claim Denials Affect A/R

Denied claims delay payments and increase administrative burden. Without an effective process to identify, appeal, and correct them, your A/R days will climb - and revenue will suffer.

Top causes of denials include:

• Missing or incorrect patient information

• Invalid or mismatched codes

• Lack of medical necessity

• Authorization issues

• Timely filing errors

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Smart Denial Management Strategies

Here’s how your practice can bring A/R under control with focused denial management:

1. Track Denials by Category and Payer

Use denial analytics to identify trends by reason, payer, or procedure. Target high-frequency denials to reduce repeat errors and avoid delays.

2. Automate Where Possible

Leverage billing software or RCM tools that automatically flag denials, apply common fixes, and streamline appeal workflows.

3. Train Your Front Desk and Coding Staff

Many denials stem from preventable front-end errors. Ensure your team is well-trained in eligibility verification, documentation, and coding accuracy.

4. Build a Rapid Appeal Process

Have a predefined protocol for appealing denied claims, including templates, timelines, and designated responsibilities.

5. Conduct Regular A/R Aging Reviews

Review aging reports weekly. Prioritize high-dollar claims and those approaching timely filing limits to prevent permanent write-offs.

6. Outsource Complex Denials

Consider working with denial management experts for high-volume or complex denials to improve resolution speed and reduce follow-up time.

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The Payoff: Reduced A/R Days & Stronger Revenue Cycle

With smarter denial management in place, practices can:

• Reduce A/R days by 15–25%

• Improve first-pass claim acceptance rates

• Lower write-offs and bad debt

• Strengthen cash flow and reduce administrative stress

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Final Thought

Denials aren’t just frustrating — they’re expensive. But with the right strategy, tools, and team in place, denial management can be transformed from a drain into a driver of profitability.

Want help optimizing your denial management and A/R performance? Explore our RCM solutions and connect with an expert today.