What is an acceptable AR (Accounts Receivable) amount?
We at AMBS have found over the years that an acceptable formula for determining your AR Health is to multiply your gross average monthly charges by 2.5 to 3. Example: Avg. monthly charges $40,000 x 2.5 = $100,000. If you are at or above this number, there is a chance that you will need to put a greater focus on your growing AR. This is something that AMBS has become an expert at doing. We also like to see your 120+ at 18% of the total or less this is based on National Averages.
