AR aging (120+ days) is the dollar value or percentage of accounts receivable that has remained uncollected for more than 120 days from the date of service.

AR over 120 days old is generally considered problem AR—claims stuck in payer limbo, patient balances that likely won't be collected without aggressive intervention, or write-off candidates. Healthy telehealth organizations keep less than 15% of AR in the 120+ bucket; above 25% signals serious revenue cycle dysfunction.

This metric is more actionable than total Days in AR because it focuses attention on the claims most likely to become bad debt. Work this bucket aggressively: identify patterns, escalate stuck claims, write off uncollectible balances, and improve upstream processes to prevent claims from aging into this bucket.

Review AR aging weekly, not monthly. A claim that sits untouched from day 90 to day 120 crosses into problem territory silently. Catch these earlier.

Related terms: Days in Accounts Receivable, Net collection rate, Reimbursement cycle time