How to Cut AR Over 90 Days: A Practical Playbook for Multi-Specialty Groups
For multi-specialty medical groups, accounts receivable exceeding 90 days can gradually strain cash flow and increase the workload for billing teams. Each specialty may have distinct payer guidelines, documentation standards and claims processes. Without a structured follow-up and recovery strategy, outstanding balances can remain unresolved for months.
To reduce AR over 90 days, organizations need more than repeated follow-up calls. They need accurate reporting, clear ownership and a consistent approach to resolving outstanding claims. This practical playbook explains how healthcare groups can identify problem accounts, prioritize recovery efforts and strengthen their revenue cycle.
Why AR Over 90 Days Becomes a Problem for Multi-Specialty Groups?
An aging receivable is not automatically uncollectible. However, the longer a balance remains unpaid the more difficult it can become to resolve. Filing deadlines may pass, supporting records may be harder to retrieve and patients may become less responsive.
Multi-specialty groups face additional challenges because each department may have different billing patterns. For example:
A surgical claim may require authorization or operative documentation.
A radiology claim may need review of coding or medical necessity.
A primary care claim may involve eligibility or coordination-of-benefits issues.
A specialty consultation may require a referral or payer-specific documentation.
These differences make it important to review outstanding balances by specialty, payer and denial reason rather than treating the entire AR portfolio as one category.
Step 1: Start With an Accurate AR Aging Report
An effective recovery plan begins with reliable information. An AR aging report groups unpaid balances by how long they have remained outstanding. Common categories include 0–30, 31–60, 61–90 and over 90 days.
Review the report regularly and look beyond the total balance. Identify:
Which specialties have the highest aged receivables.
Which payers account for the largest outstanding balances.
Whether claims are awaiting payer action or internal correction.
Which accounts have had repeated follow-up without resolution.
Whether patient balances are being handled through a separate workflow.
A useful report should show the balance, date of service, payer, claim status, last action and next required step. This helps the team identify areas that require attention and determine where action is needed.
Step 2: Prioritize Accounts Based on Recovery Potential
Not every old account deserves the same level of attention. Teams should prioritize balances based on their value, age, filing deadlines and likelihood of recovery.
Create practical recovery categories
Consider dividing accounts into four groups:
High-value claims: Large outstanding balances that may have a meaningful cash impact.
Correctable denials: Claims that need coding changes, documentation or other corrections.
Payer follow-up: Claims submitted correctly but still awaiting processing or payment.
Patient responsibility: Deductibles, copayments and coinsurance that require appropriate patient communication.
This approach helps teams focus their time where it can make the greatest difference.
A structured AR recovery services approach should also include clear ownership. Every account needs an assigned person or team responsible for the next action and follow-up date.
Step 3: Identify and Resolve the Root Cause of Delays
Repeatedly contacting payers will not solve a problem caused by missing documentation or incorrect claim information. Teams must identify why each claim remains unpaid.
Common causes include:
Incorrect patient or insurance details.
Coding errors and missing modifiers.
Authorization or referral issues.
Missing clinical documentation.
Coordination-of-benefits problems.
Claims submitted outside payer deadlines.
Track these reasons by specialty and payer. If one department repeatedly experiences the same denial type, investigate the underlying workflow rather than correcting each claim individually.
This is an important part of effective healthcare AR management. Addressing the cause of delayed payment helps prevent similar accounts from entering the aging category again.
Step 4: Establish a Consistent Follow-Up Process
Aged accounts need a defined follow-up schedule. Without one, claims can be reviewed multiple times without meaningful progress or remain untouched for weeks.
Set clear follow-up responsibilities
For each account, record:
The last action taken.
The payer response or outstanding requirement.
The next action required.
The assigned team member.
The expected follow-up date.
Use escalation rules for claims that remain unresolved after repeated contact. For example, accounts involving complex payer disputes may require supervisor review while documentation-related issues should be directed to the appropriate clinical or coding team.
Consistent medical AR management also means reviewing payer response patterns. This can help identify recurring delays and support more focused conversations with payer representatives.
Step 5: Improve Patient Balance Collections
Not all aged receivables are payer related. Patient responsibility can also contribute to outstanding AR.
Clear communication is important. Patients should understand what they owe and why they owe it. Practices can improve the process by:
Providing clear and timely statements.
Explaining insurance adjustments and patient responsibility.
Offering convenient payment options where available.
Using appropriate reminders and follow-up communication.
Resolving billing questions before they become prolonged disputes.
A connected healthcare CRM system can support more organized patient communication and help practices manage interactions across the patient journey. The exact capabilities depend on the software and configuration.
Step 6: Use Technology to Improve AR Visibility
Manual spreadsheets and disconnected systems can make it difficult to track account status across multiple specialties. Technology can help teams organize information and identify accounts that need attention.
Useful capabilities to evaluate include:
Centralized account and patient information.
AR aging and outstanding balance reporting.
Task assignment and follow-up tracking.
Patient communication history.
Workflow visibility across departments.
RevCycle Power Pro's revenue cycle management software is relevant to organizations evaluating technology for their revenue cycle workflows. Practices should assess available features against their reporting and operational requirements.
Step 7: Monitor Progress with the Right Metrics
A reduction in aged AR should be supported by measurable improvements. Multi-specialty groups can review these indicators weekly or monthly:
Metric | What it helps measure |
AR over 90 days | Outstanding balances older than 90 days |
AR days | Average time receivables remain outstanding |
Net collection rate | Percentage of collectible revenue received |
Denial rate | Frequency of claims denied by payers |
First-pass resolution rate | Claims accepted without additional correction |
Recovery rate | Aged balances successfully collected |
Review the results by specialty and payer. This helps leadership identify which workflows are improving and where further attention is needed.
Conclusion: Make AR Recovery a Continuous Process
Reducing aged receivables requires a disciplined process rather than a one-time cleanup exercise. Accurate reporting, focused prioritization, timely follow-up and better patient communication can help multi-specialty groups improve collections and maintain healthier revenue cycle operations.
To reduce AR over 90 days consistently, organizations should also address the reasons claims become delayed in the first place. Explore RevCycle Power Pro to learn more about its healthcare CRM and revenue cycle management solutions and evaluate how they may support your organization's operational goals.
Frequently Asked Questions
1. What is considered a good AR over 90 days percentage?
There is no single target that applies to every medical group. Performance depends on specialty mix, payer contracts and billing practices. Organizations should establish internal benchmarks and monitor trends over time.
2. What is an AR aging report?
An AR aging report organizes unpaid claims and balances according to how long they have remained outstanding. It helps billing teams identify delayed payments and prioritize follow-up.
How can healthcare organizations reduce AR days?
They can improve claim accuracy, verify insurance eligibility, address denials quickly, follow up consistently and strengthen patient payment communication.
How can automation help reduce healthcare AR?
Automation can support reporting, task assignment, reminders and communication workflows. Its effectiveness depends on system integration, data quality and how teams use the available tools.
5.What is the fastest way to reduce AR in medical billing?
Start by identifying high-value accounts that are still recoverable. Resolve correctable denials, follow up on pending payer claims and address missing documentation. Review progress frequently.
