The Hidden Mistakes That Increase Your A/R Days and Slow Down Your Cash Flow
Every denied claim adds more days to your accounts receivable. Your team spends time digging through records, correcting errors, resubmitting claims, and waiting for payers to respond. When this happens across hundreds of claims, the delays stack up and push your A/R days higher. High performing practices keep A/R days at 30 or below, while average practices hover around 40 to 50 days.
If your A/R days are above 50, there are specific process errors creating a growing backlog. The issue is rarely a lack of effort or capability, it is preventable mistakes that keep generating denials and trapping your revenue for weeks or even months. Below are the ten most common mistakes that cause denials and the steps to fix them.
Mistake 1, Verifying Insurance Only at Scheduling
The front desk checks insurance when the appointment is booked, then never verifies again. When coverage changes and the claim is submitted, it gets denied as “not covered.”
A/R impact
More than half of all denials come from eligibility issues. Insurance can change between scheduling and the appointment. Each denied claim adds 15 to 30 extra days to your A/R timeline.
How to fix it
Verify insurance twice, once at scheduling and again within 24 to 48 hours of the appointment. Real time eligibility tools help identify coverage changes immediately. Practices using double verification often improve collections by 30 to 40 percent.
Mistake 2, Missing Prior Authorization Deadlines
Authorization requests are submitted late or lack the documentation needed for approval.
A/R impact
Prior authorization denials affect high value procedures. A missed authorization can turn a collectible claim worth thousands into a complete loss, even after the service has been provided.
How to fix it
Use a tracking system with automatic deadline alerts. Create payer specific checklists and assign a dedicated coordinator. Set internal deadlines a few days earlier than the payer’s requirement to avoid last minute rushes.
Mistake 3, Using Outdated or Non Specific Diagnosis Codes
Staff rely on old ICD codes or use unspecified options when more detailed codes are available.
A/R impact
ICD codes are updated every year. Submitting deleted or vague codes leads to automatic denials. Each coding related denial requires manual review and resubmission, adding weeks to payments.
How to fix it
Run quarterly audits for high volume services. Subscribe to coding update alerts. Maintain quick reference guides based on your top procedures. Claim scrubbers should flag nonspecific codes before submission.
Mistake 4, Submitting Claims Without Clear Medical Necessity Documentation
Providers document what was done but not why it was necessary according to payer rules.
A/R impact
These denials affect high value claims and require the most time to appeal. One denial can take hours of staff work and delay thousands of dollars in revenue.
How to fix it
Use documentation templates that prompt providers to include medical necessity language. For higher value procedures, add a pre submission documentation review. Build a library of effective appeal letters organized by payer and denial type.
Mistake 5, Not Tracking Coordination of Benefits
When patients have more than one insurance plan, the billing order is often guessed instead of verified.
A/R impact
COB mistakes cause claims to bounce between payers, each one denying responsibility. This adds 30 to 60 days of extra aging and increases administrative work.
How to fix it
Ask every patient about secondary insurance during registration. Use clearinghouse tools to confirm billing order before submitting claims. When in doubt, contact both insurers and document the guidance.
Mistake 6, Missing Timely Filing Deadlines
Claims sit pending provider signatures or incomplete notes. Denials are not reworked quickly enough and the deadline expires.
A/R impact
Timely filing denials are difficult to overturn and often result in complete write offs. Even a small percentage of claims missed can cost tens of thousands annually.
How to fix it
Create a visible dashboard listing deadlines for each payer. Automate workflows to push claims out within two to three days of completed documentation. For denials, use a seven day rule, every denial must be acted upon within seven days.
Mistake 7, Entering Incorrect Patient Demographics
Typos in names, dates, policy numbers, or subscriber details cause immediate rejections.
A/R impact
Almost one fifth of denials come from demographic errors. Each incorrect entry requires calls, corrections, and resubmissions that add unnecessary days to your A/R cycle.
How to fix it
Use insurance card scanning tools to minimize manual entry. Implement digital check ins that allow patients to verify their own information. Train the front desk to prioritize accuracy over speed.
Mistake 8, Using the Same Appeal Letter for Every Denial
Your team submits generic appeal letters with minor edits regardless of payer or denial type.
A/R impact
Payers have unique appeal requirements and formats. Generic letters get rejected more often and waste limited appeal opportunities. When appeals are tailored correctly, more than half of denied claims can be overturned.
How to fix it
Create a library of payer specific appeal templates. Track appeal success rates to refine strategies. Save successful appeal letters for future use and include supporting guidelines or medical literature when needed.
Mistake 9, Not Analyzing Denial Patterns
Denials are handled one by one instead of identifying trends that could prevent future errors.
A/R impact
Repeating mistakes lead to repeating denials. Without pattern analysis, the same issues will continue increasing your A/R days. Most denials are preventable once the root cause is identified.
How to fix it
Use a denial tracking system that logs payer, reason code, service type, provider, and resolution. Review reports monthly and fix recurring issues at the source.
Mistake 10, Treating Every Denial the Same
Teams work the denial queue in chronological order instead of financial priority.
A/R impact
Spending time on low value claims while high value claims age results in major revenue losses. A few large denials can represent the majority of unpaid dollars.
How to fix it
Prioritize denials based on value. Claims worth more than two thousand dollars should receive immediate attention. Assign specialists to specific denial categories and set escalation points at each aging milestone.
How These Mistakes Increase A/R Days
Every mistake mentioned above contributes to elevated A/R. Eligibility issues cause claims to bounce back weeks after submission. Authorization denials involve long appeal cycles. Coding errors delay claims by several weeks. Missing documentation leads to long appeal processes. Timely filing errors cause irreversible losses. Administrative mistakes create continuous rework loops.
When these issues occur across dozens or hundreds of monthly claims, they create a continuous backlog that keeps A/R days high. Practices with A/R under 30 have not eliminated denials entirely, they have built systems that prevent most issues before submission and resolve unavoidable ones quickly.
Final Recommendation
Choose one major problem area in your practice and fix it this month. If eligibility is your biggest issue, implement two step verification immediately. If timely filing is the main concern, create a deadline tracking spreadsheet and set reminders. Focus on one improvement at a time, measure results, and then move to the next area.
Practices using this method often see noticeable improvements in A/R days within two to three months. Your A/R days tell the story of how strong your denial prevention systems are and improving them starts with correcting these common mistakes.
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