The latest Kodiak Benchmark Report shows some encouraging progress in 2025. Average days in AR improved to 52.6 days, down from 54.9 days, while the percentage of accounts receivable aged beyond 90 days dropped to 33.7% from 35.2%.

That’s movement in the right direction, but many practices still face reimbursement delays and financial strain.

Let’s break down the root causes of high AR days and the practical fixes you can implement to regain control of your cash flow.

4 Drivers Behind Rising AR Days and the Solutions to Reverse Them 

AR days are like smoke; they signal a fire somewhere else. The real challenge is figuring out where that fire started.

Here are the top four causes of long AR days, along with targeted solutions.

1. Higher Denial Rates 

A 2025 denial survey found that 41% of revenue leaders report denial rates of at least 10%, and spend nearly $20 billion annually overturning denials.

Below are the denial categories that bloat AR days.

Eligibility & Coverage Denials

According to an MGMA stat poll, eligibility and coverage issues rank as the second most common cause of claim denials.

Common triggers include inactive coverage, incorrect payer selection, COB errors, and network mismatches, which can add 45–75 days to your AR.

Solution:

• Perform real-time eligibility checks
• Automate COB verification
• Train staff using denial data trends
• Leverage AI-powered automated eligibility tools, such as GlaceRCM

Prior Authorization Denials

Many high-cost services require prior authorization. Missed, expired, or incorrect prior authorizations often lead to denials that require retroactive requests, documentation reviews, peer-to-peer discussions, and appeals.

Solution

• Maintain a payer-specific prior authorization matrix by CPT/HCPCS code and diagnosis
• Embed PA checks into scheduling
• Leverage AI-driven tools to automate PA
• Use PA denial analytics to drive continuous improvement.

Documentation Denials

Insufficient documentation remains a leading cause of medical necessity denials, triggering appeals, additional paperwork, and reimbursement delays of 90–120 days or more.

Solution

• Invest in Clinical Documentation Improvement (CDI) programs
• Standardize documentation templates
• Leverage AI-powered medical scribes, such as GlaceScribe, for real-time documentation
• Apply predictive analytics to flag and address documentation gaps

Coding & Modifier Denials

Coding denials most often stem from:

• Incorrect CPT/ICD pairing
• Missing modifiers
• NCCI edits and payer-specific bundling rules

These errors are relatively straightforward to fix, but can delay payment by 40–60 days.

Solution

• Use AI-assisted automated coding for improved accuracy
• Maintain payer-specific edit libraries, not generic scrubber rules
• Track coding denials by coder, provider, specialty, and payer to address the root cause

2. Credentialing Lags 

The credentialing process typically takes 90–120 days, making delays a significant revenue risk.

Credentialing delays most often occur due to:

• Errors or inconsistencies in application forms
• Missing or outdated documentation
• Failure to meet payer-specific requirements 
• Delays in re-credentialing

Claims may be denied if services are provided before credentialing is complete.

Solution

• Centralize provider enrollment and credentialing tracking
• Use automated credentialing tools
• Set alerts for expiring contracts
• Align credentialing workflows with revenue cycle and scheduling teams

3. Inefficient Denial Management 

Denials are inevitable. However, when the denial resolution process lacks structure, prioritization, and automation, those denials pile up in the 90+ day AR bucket.

Delays in denial resolution occur due to:

• Missed appeal deadlines
• Poor denial prioritization
• Manual follow-ups
• Lack of payer-specific appeal strategies

Solution

• Prioritize denials: Use analytics to focus on claims with the highest dollar value and likelihood of recovery. 
• Standardize appeals: Create pre-built payer-specific appeal templates and workflows to streamline resubmissions. 
• Measure recovery, not just volume: Track denial recovery rate and average days to resolution to assess performance
• Close the loop: Use denial data to improve front-end efficiency, coding accuracy, and provider education.

4. Weak Patient Collections

Nearly 3 in 10 providers struggle to collect patient payments. Patient collection delays stem from unclear financial responsibility, delayed statements, limited payment options, and generic outreach strategies. These gaps leave balances lingering in A/R and increase bad debt risk.

Solution

• Collect upfront: Generate accurate cost estimates and collect copays and deductibles before the visit.
• Personalize patient outreach: Tailor follow-up based on balance size and collection risk. 
• Offer flexible payment options: Enable SMS and email statements with click-to-pay, online portals, digital wallets, and automated payment plans.
• Track patient AR: Monitor AR balances and hold teams accountable.
• Leverage virtual assistants: Automate payment reminders, follow-ups, and collections with AI-powered virtual assistants, such as GlacePhoneSmart.

Turn AR from a Liability into a Growth Lever

Rising AR days don’t happen overnight, and they don’t come down overnight either. But with the right strategy, systems, and support in place, they can be brought under control.

Glenwood Systems' intelligent workflows, advanced analytics, and AI-driven revenue cycle solutions focus on advanced denial and AR management. We aim for 99%+ collections while eliminating revenue leakage across the revenue cycle.

Leave the heavy lifting to us and stay focused on patient care. Book a demo today!