Typical accounts receivable?

[pharmer]

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We do our own billing in house and our numbers at the close of the year were as such for accounts receivable: 31-60d (past due) 7.7%, 61-90d 6.4%, 91-120d 1.8%, 121-180d 1.1%, 181+d 4.48%. I am not sure what the benchmark is out there for accounts receivable and would like to know what you guys are seeing or experiencing?

 

[ranvier]

Where is the other 80%....0-30?

 

[pharmer]

Yes the remainder is 0-30d or has been collected.

 

[Mman]

We do our own billing in house and our numbers at the close of the year were as such for accounts receivable: 31-60d (past due) 7.7%, 61-90d 6.4%, 91-120d 1.8%, 121-180d 1.1%, 181+d 4.48%. I am not sure what the benchmark is out there for accounts receivable and would like to know what you guys are seeing or experiencing?

The answer is that it depends. Your 181+ number sticks out like a sore thumb to me, but that's probably because we write those off way sooner. I mean if someone isn't ever going to pay you, continuing to try to collect it costs more than it is worth. You can basically make those % numbers whatever you want, but that's not really what you care about. What you care more about is what percentage of billed your are collecting and then you can weight that by time to collection for each dollar.

 

[Wiscoblue]

A high 0-30 usually correlates with high Medicare payer mix.

 

[pharmer]

Definitely high medicare payer mix at about 50%