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Medical Practice Accounts Receivable Days Calculator

Calculate days in accounts receivable for a medical practice from total AR and average daily charges, and benchmark against 2026 MGMA and HFMA targets of under 40 days. Includes aging bucket analysis and payer mix impact on collection speed.

Total Accounts Receivable ($)

Annual Gross Charges ($)

A/R Aging Buckers (% of total)

0 to 30 days (%)

31 to 60 days (%)

61 to 90 days (%)

Over 90 days (%)

Buckets are normalized to 100%. MGMA average for over 90 days is 13.5%.

Your Results

Enter your A/R and annual charges, then click calculate.

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Introduction

Days in accounts receivable is the single number that tells a medical practice how fast it gets paid. It converts total A/R into a measure of time: total receivables divided by average daily charges, showing how many days pass between the date of service and payment. The MGMA and HFMA best-practice target is under 40 days, with top-performing practices running 30 to 40 days and the MGMA average around 45. A July 28, 2026 MGMA Stat poll found that 32% of medical group leaders reported days in A/R are higher than a year ago, with payer delays, initial denials, and downcoding as the dominant themes. Every added day of A/R is cash the practice cannot use for payroll and rent, which come due on schedule whether or not claims have cleared. This calculator takes your total A/R, annual gross charges, and aging bucket percentages, then shows days in A/R, the benchmark status, and the aged A/R exposure that signals write-off risk.

What This Calculator Does

This tool calculates days in accounts receivable for a medical practice. You enter your total accounts receivable, annual gross charges, and the percentage of A/R in each aging bucket (0 to 30, 31 to 60, 61 to 90, and over 90 days). The calculator computes days in A/R, classifies the result against the 40-day best-practice target and the MGMA average, shows average daily charges, and breaks down the dollar amount in each aging bucket. It flags when A/R over 90 days exceeds the MGMA average of 13.5%, since aged A/R is the money most likely to be written off.

The Formula

Days in A/R = Total Accounts Receivable / (Annual Gross Charges / 365) | Average Daily Charges = Annual Gross Charges / 365 | A/R Over 90 Days % = (A/R Over 90 Days / Total A/R) x 100

The total accounts receivable is the net amount owed to the practice by patients, third-party payers, and other parties for fee-for-service activities, after adjustments but before write-offs. The annual gross charges are the total fee-for-service charges billed over the year. The average daily charges is annual charges divided by 365. The days in A/R is total A/R divided by average daily charges, expressing the receivables as a number of days of charges. The aging buckets are mutually exclusive categories that sum to 100% of total A/R, aged from the date of service for physician practices. The 40-day best-practice target comes from MGMA and HFMA benchmarks, with the MGMA average around 45 days and the aged A/R benchmark at 13.5% over 90 days.

Step-by-Step Example

Enter total accounts receivable

A practice with $450,000 in total A/R enters $450,000 from its trial balance.

Enter annual gross charges

The practice billed $3,600,000 in gross charges over the past year, so average daily charges are $3,600,000 / 365 = $9,863 per day.

Enter aging bucket percentages

The practice enters 55% in 0 to 30 days, 20% in 31 to 60, 12% in 61 to 90, and 13% over 90 days.

Review the results

Days in A/R: $450,000 / $9,863 = 45.6 days, above the 40-day target and at the MGMA average. A/R over 90 days is 13% of total, just under the 13.5% MGMA average. The practice is average, not best practice.

Real-World Use Cases

Monthly Revenue Cycle Review

A practice administrator calculates days in A/R monthly and tracks the trend, looking for increases that signal payer delays, denial backlogs, or clean claim rate problems before they become cash flow crises.

Payer Mix Impact Analysis

A practice with rising days in A/R breaks down the aging by payer group to identify whether Medicare, a specific commercial payer, or self-pay balances are driving the delay, then targets follow-up accordingly.

Benchmarking Against MGMA and HFMA

A practice management consultant compares a client days in A/R and aging buckets against the MGMA average of 45 days and the 13.5% over 90 days benchmark to identify whether the practice is above or below industry norms.

Common Mistakes to Avoid

Using net charges instead of gross charges. The MGMA formula uses gross fee-for-service charges, not net charges after contractual adjustments. Using net charges inflates days in A/R because the denominator is smaller, making a healthy practice look slow. Always use gross charges for the denominator.
Including assigned-to-collection accounts in total A/R. Accounts assigned to collection agencies should be excluded from total A/R per MGMA definition. Including them overstates A/R and inflates days in A/R, masking the true collection speed of active receivables.
Averaging days in A/R over too long a period. Days in A/R should be calculated at a point in time, typically month-end, not averaged over a quarter or year. Averages hide spikes that signal a sudden payer delay or denial backlog. Track the monthly trend, not just the annual average.
Ignoring the aging bucket distribution. Two practices with the same 45 days in A/R can have very different risk profiles. One with 70% in 0 to 30 days is healthy with a few slow claims. One with 30% over 90 days is sitting on a write-off problem. Always review the aging buckets alongside the days in A/R number.
Focusing on the number without acting on the cause. Days in A/R is a symptom, not a cause. A rising number points to payer delays, initial denials, downcoding, or clean claim rate problems. The fix is in the front-end and denial management processes, not in the A/R calculation itself.

Frequently Asked Questions

What is a good days in A/R for a medical practice in 2026?

The MGMA and HFMA best-practice target is under 40 days. Top-performing practices run 30 to 40 days. The MGMA average is around 45 days. Above 55 days is considered critical and signals payer delay, denial backlog, or clean claim rate problems. A July 2026 MGMA Stat poll found 32% of practices reported days in A/R are higher than a year ago.

How is days in A/R calculated?

Days in A/R = Total Accounts Receivable divided by Average Daily Charges, where Average Daily Charges = Annual Gross Charges divided by 365. For example, $450,000 in A/R with $3,600,000 in annual gross charges gives $450,000 / ($3,600,000 / 365) = 45.6 days. Always use gross charges, not net charges after adjustments.

What percentage of A/R should be over 90 days?

The MGMA average for A/R over 90 days is about 13.5% of total A/R. Best-practice practices keep it under 10%. A/R over 90 days is the money most likely to be written off, so a rising percentage signals a growing write-off risk that should trigger aggressive follow-up on aged claims.

Why are days in A/R rising in 2026?

A July 28, 2026 MGMA Stat poll found 32% of practices reported higher days in A/R than a year ago. The dominant themes were payer behavior: slower payment, initial denials, downcoding, requests for medical records, prepayment audits, and lengthy appeals. Practices that maintained clean claims, next-day submission, and consistent denial follow-up kept days in A/R flat despite payer pressure.

Should days in A/R be calculated per payer?

Yes, for diagnostic purposes. Overall days in A/R is the headline number, but breaking it down by payer group (Medicare, Medicaid, commercial, self-pay) identifies which payer is driving the delay. A practice may have 28 days for insurance A/R but 60 days for self-pay, making the overall number misleading without the payer breakdown.

Accuracy and Disclaimer

This calculator applies the MGMA and HFMA definition of days in accounts receivable using gross fee-for-service charges. The 40-day best-practice target and 13.5% aged A/R benchmark reflect 2025 to 2026 MGMA and HFMA published data. Actual benchmarks vary by specialty, payer mix, and practice size. Accounts assigned to collection agencies should be excluded from total A/R per MGMA definition. This is not financial or operational advice. Consult a certified medical practice executive or revenue cycle consultant for guidance on your specific practice performance.

Conclusion

Days in A/R is the revenue cycle metric that most directly predicts cash flow, and the 40-day target is the line between healthy and struggling. Run the number here, then drill into the aging buckets to find where the delay sits. If over 90 days is above 13.5%, the problem is aged claims, not slow payment. Pair this with our Healthcare Revenue Cycle KPI Dashboard Calculator to benchmark denial rate, clean claim rate, and net collection rate alongside days in A/R.

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