Calculate Your
Performance Measures

YTD Charges
YTD Adjustments
YTD Revenue
Ending AR Balance
# of Days
Balance in 90 + bucket

AR Days   AR days

Days in Accounts receivable measures how quickly the money owed to you is collected. How this number is calculated will depend on your accounting method, our example is appropriate for cash accounting where the revenue reported reflects your gross charges.

Days in AR can range between 30-45 depending on your contract status and work comp volume

Over 90 Days   % Over 90 Days

Accounts receivable is typically reported in "Aging Buckets" based on the number of days since the claim was originally billed. The AR Days can also be reported by the number of days from the actual date of service. HCB prefers to use the date of service to measure AR over 90 days.

A normal percentage for AR over 90 Days is under 21%

AR Days   Net Collection Rate

Your Net Collection Rate measures how much of the money owed to you is actually collected. Contractual adjustments are removed from your charges to determine if you are collecting all allowable amounts. The difference between 100% and your calculated Net Collection Rate can be considered your bad debt rate. This number is best calculated over a long period of time, annual data for example. If your business is experiencing growth or reduction in charges this number may be distorted until these level out. A normal Net Collection Rate is over 95%

All of these calculations are significantly impacted by the adjustments and write offs taken on your accounts. If you do not have a firm policy with quality checks for your write off procedures your measures may not be accurate.