Dastify Solutions cuts accounts receivable by up to 40% through a combination of front-end eligibility verification, AI-driven claim scrubbing, RPA-powered follow-up, aggressive denial management, and real-time AR aging analytics; all executed by 500+ AAPC-certified specialists.
Step-by-Step Approach to Reducing AR
Front-End: Eligibility Verification and Prior Authorization
Dastify performs eligibility verification at three critical points:
- Scheduling
- 48 hours before appointment
- At check-in
This ensures coverage issues are identified before services are rendered.
For high-auth specialties such as behavioral health, cardiology, and orthopedics, Dastify manages end-to-end prior authorization workflows to eliminate preventable denials.
Mid-Cycle: AI-Powered Claim Scrubbing and 98.5% Clean Claim Rate
Clean claims are essential for reducing A/R buildup.
Dastify achieves a 98.5% clean claim rate through:
- AI-based claim validation
- Payer-specific rule enforcement
- Coding accuracy checks (ICD-10, CPT, HCPCS, DRG)
- Pre-submission scrubbing workflows
Higher clean claim rates mean fewer rejections and faster payments.
Back-End: RPA-Driven Follow-Up and Denial Management
Most billing systems fail at follow-up consistency.
Dastify uses Robotic Process Automation (RPA) to:
- Check payer portals daily
- Track claim status in real time
- Identify underpayments and delays automatically
When denials occur, structured workflows ensure:
- Root cause analysis
- Appeal generation
- Fast resubmission cycles
This prevents claims from aging into low-recovery buckets.
Analytics: Real-Time A/R Visibility
Dastify provides real-time dashboards tracking:
- A/R aging by bucket
- Payer performance
- Denial trends
- Provider-level revenue leakage
- Clean claim and resolution rates
This enables proactive decision-making instead of reactive billing corrections.
Proven Impact
In a documented case involving Vital Behavioral Care, a 45+ provider behavioral health practice, Dastify Solutions reduced A/R days from 68 to 31; a 54% reduction, with previously stagnant receivables converting into cash within weeks.
Why Accounts Receivable Builds Up in Medical Practices
AR doesn’t spike because of one bad month. It builds slowly, driven by structural problems in the billing workflow that compound over time. Here are the biggest culprits. According to Change Healthcare (2022), the national average denial rate was 11%, with 80–90% of denials considered preventable.
1. Claims submitted with errors
Industry clean claim rates average 85–90%, meaning up to 15% of claims enter rework cycles. Each rejection adds 15–30 days to payment timelines.
2. Inconsistent follow-up
Without structured daily follow-up, claims age silently. Once they cross the 90+ day threshold, recovery rates drop significantly.
3. Eligibility and authorization failures
Lapsed coverage or missing prior authorization often results in immediate denial; frequently unrecoverable.
4. Unworked denials
Approximately 65% of denied claims are never resubmitted, resulting in permanent revenue loss.
5. Patient balance collection gaps
Time-of-service collection has dropped significantly post-pandemic, shifting more balances into aging receivables.
Good Denial Rate Benchmarks (CMS & HFMA):
| KPI | Target | Description |
|---|---|---|
| Claim denial rate | ≤ 5% | Measures the frequency of denied claims |
| Net collection rate | ≥ 95% | Revenue collected after contractual adjustments |
| Clean claim rate | 98% | Claims accepted without edits |
| Days in A/R | ≤ 40 days | Average time to collect payment |
| Denial resolution time | ≤ 30 days | Duration to resolve denials |
What AR Days Should You Target in 2026?
- Top performers: Under 25–30 days
- Industry average: 30–40 days
- Concerning: 40–50 days
- Critical: Over 50 days
Dastify’s target benchmark for partner practices is under 30 days, validated through real-world implementations such as the Vital Behavioral Care case study.
How AR Reduction Directly Increases Revenue
Reducing A/R does more than improve cash flow timing; it improves total revenue recovery. Claims that remain in 90+ day aging buckets have significantly lower collection probability. Faster resolution prevents revenue leakage and reduces write-offs.
Improved cash flow also enables practices to invest in growth without relying on external financing.
References
[1] MGMA. “2025 Financials and Operations Data Report.” Published September 2025.
[2] HealthQuestBilling.com. “Clean Claim Submission in Medical Billing (2026).” Published 2026.
[3] MedicalBillersAndCoders.com. “Clean Claim Rate Optimization.” Published May 2026.
[4] MGMA. “Patient Balance Collection: What’s Moving the Numbers.” Published October 2025.
[5] HumanMedicalBilling.com. “Essential Medical Billing KPIs for 2025.” Published August 2025.
[6] RevenueSynergy.com. “2026 Medical Billing Benchmarks by Specialty.” Published January 2026.
[7] The SSI Group. “Optimizing Clean Claim Rates.” Published July 2025.
[8] ProMD Medical Billing. “MGMA Billing Benchmarks Every Medical Practice Should Know.” Published 2024.
If your practice’s AR days are sitting above 40, there’s likely recoverable revenue locked up in aging claims. Dastify Solutions offers a free practice analysis that identifies exactly where your AR is stuck and what it would take to fix it. Request a demo
Disclaimer: This article addresses accounts receivable management in medical billing. It does not constitute financial or legal advice. Consult a qualified RCM professional for decisions specific to your practice.
