Days in Accounts Receivable is the average number of days between the date of service and when payment is collected, measuring how quickly your organization converts completed visits into cash.

For telehealth organizations, Days in AR often runs higher than traditional practices due to payer unfamiliarity with telehealth codes, place-of-service complexities, and higher rates of patient self-pay requiring collection efforts. A healthy telehealth operation targets 30-40 days; above 50 days signals billing process problems or payer mix issues requiring attention.

This metric directly impacts cash flow and your ability to fund operations. High Days in AR means you're essentially providing free financing to payers and patients. Calculate it monthly: (Total AR ÷ Average Daily Charges) gives you the number.

Watch the trend, not just the absolute number. Increasing Days in AR month-over-month often signals emerging problems with a specific payer, new claim denial patterns, or staffing issues in your billing operation before those problems become obvious elsewhere.

Related terms: AR aging (120+ days), Net collection rate, Reimbursement cycle time