Question

How do I calculate Patients balance?

Answer 1

Measuring patients balance Receivable: “Days in AR”

The first measure is the “days in accounts receivable” – the average number of days it takes to collect the payments due to the practice. To calculate days in AR,

*Compute the average daily charges for the past several months – add up the charges posted for the last six months and divide by the total number of days in those months.

*Divide the total accounts receivable by the average daily charges. The result is the Days in Accounts Receivable.