# Days in Accounts Receivable (DAR): Formula and Benchmarks Canonical: https://www.flobotics.io/blog/days-in-accounts-receivable-dar-explanation Author: Krzysztof Szwed Published: 2026-05-21 Updated: 2026-09-01 --- [Home](https://www.flobotics.io/)/[Articles](https://www.flobotics.io/blog)/Days in Accounts Receivable (DAR): Formula and Benchmarks [Healthcare](https://www.flobotics.io/blog?category=healthcare)[RCM](https://www.flobotics.io/blog?category=rcm) # Days in Accounts Receivable (DAR): Formula and Benchmarks [Krzysztof SzwedHead of Delivery at Flobotics](https://www.flobotics.io/our-editorial-team#szwed) Published May 21, 2026Updated September 1, 2026 On this page - [What Are Days in Accounts Receivable (DAR)?](#what-are-days-in-accounts-receivable-dar) - [Why DAR Is the Headline RCM Metric](#why-dar-is-the-headline-rcm-metric) - [Industry Benchmarks](#industry-benchmarks) - [What Drives DAR Higher](#what-drives-dar-higher) - [How to Reduce DAR Through Automation](#how-to-reduce-dar-through-automation) Book a callWant to talk about it? 30 minutes with someone who builds automations, not a sales script. [Talk to us →](https://www.flobotics.io/contact) Share [](#)[](#) ## What Are Days in Accounts Receivable (DAR)? Days in Accounts Receivable (DAR) — also called Days in AR or AR Days — measures the average number of days it takes a healthcare provider to collect payment for services rendered. It is calculated by dividing total outstanding AR by average daily charges. The result tells you, on average, how long it takes from delivering care to receiving and posting payment. DAR is the most widely used summary indicator of revenue cycle velocity and cash flow health. It captures the cumulative effect of everything in the billing cycle: claim submission speed, denial rates, payer processing times, payment posting efficiency, and patient collections. A high DAR means money is sitting in the pipeline instead of your bank account. ## Why DAR Is the Headline RCM Metric Every extra day in AR represents delayed cash — which has a real cost. Organizations with high DAR carry larger financing needs, face higher write-off risk as claims age toward timely filing limits, and spend more on collections for aged accounts. DAR above 50 days is often associated with chronic cash flow problems and reliance on credit to bridge gaps that better billing discipline would close. DAR is also diagnostic. When it worsens, something upstream has deteriorated: denial rates may have increased, payment posting may have slowed, a payer may be systematically delaying claims, or eligibility failures may have created a wave of rejected claims doubling collection timelines. ## Industry Benchmarks - Best-in-class: 25–35 days - Acceptable: 35–50 days - At risk: 50–65 days — requires structured AR cleanup and process audit - Critical: 65+ days — significant write-off risk on aging buckets The benchmark that matters most is your own trend over time. Consistent upward drift is always a warning signal regardless of absolute value. ## What Drives DAR Higher - High denial rates: Rejected claims cycle through rework processes adding weeks to collection timelines - Slow claim submission: Delays between service and claim generation directly extend DAR - Manual payment posting backlogs: ERA/EOB data sitting unprocessed makes DAR appear worse than actual payer performance - Patient responsibility collection gaps: Increasing patient cost-sharing that goes uncollected inflates DAR's patient AR component - AR cleanup neglect: Accounts that should be written off but remain open inflate the numerator ## How to Reduce DAR Through Automation DAR improvement requires compressing every phase of the claims cycle simultaneously — which is why [RCM automation programs](https://www.flobotics.io/rcm-automation) deliver their most visible results here: - [Automated eligibility verification](https://www.flobotics.io/agents/eligibility-check-automation) eliminates the most common denial trigger, preventing rework loops that extend DAR - [Automated claims management](https://www.flobotics.io/agents/claims-management-automation) submits clean claims within hours of service - Automated payment posting from ERA feeds processes payments daily without backlog accumulation - [Automated denial management](https://www.flobotics.io/agents/denials-management-automation) prioritizes high-value denied claims for rapid resolution before they age See how our clients reduced DAR by 30–50% in our [healthcare case studies](https://www.flobotics.io/case-studies). Let’s talk! It’s a 30-minute call. Within the first 15, we’ll know if automation works for you. [Book a call →](https://tidycal.com/team/flobotics/flobotics-intro-call-w) Written byKrzysztof Szwed Head of Delivery at Flobotics. [More from Krzysztof](https://www.flobotics.io/our-editorial-team#szwed) Talk to us ## Show us the process your team is tired of doing manually. Let Karl, our CTO, take a look. It’s 30 minutes with the person who designs the automations, not a sales script. [Book a call with Karl →](https://tidycal.com/team/flobotics/flobotics-intro-call-w)[Send us a message](https://www.flobotics.io/contact) 30-minute callKarl MielnickiCo-founder, CTO Walk me through the process your team does by hand. I’ll tell you whether it’s worth automating and how I’d approach it. Karl Keep reading ## More insight The latest industry news, interviews, technologies, and resources. [ HealthcareRCM ### Net Collection Rate (NCR): Formula and Benchmarks Net Collection Rate (NCR) explained: the RCM metric measuring collectible revenue actually captured. Best practice is 95-99% - below that, revenue leaks. Bart TeodorczukJune 04, 2026 ](https://www.flobotics.io/blog/net-collection-rate-ncr)[ HealthcareRCM ### Cost to Collect (CTC): Definition and Benchmarks Cost to Collect (CTC) benchmarks sit at 3-5% of net revenue - a 1% cut on $10M in collections frees up $100,000 in cash. Karl MielnickiMay 18, 2026 ](https://www.flobotics.io/blog/cost-to-collect-ctc-explanation)[ HealthcareRCM ### Claim Turnaround Time (CTT): Benchmarks and Root Causes Claim Turnaround Time (CTT), explained: why 14-21 days is best-in-class and 45+ days signals a billing cycle problem. Krzysztof SzwedMay 04, 2026 ](https://www.flobotics.io/blog/claim-turnaround-time-ctt-explanation) [All articles →](https://www.flobotics.io/blog)