Published • loading... • Updated
Healthcare Practices’ Accounts Receivable Cycles Are Getting Longer, K-38 Consulting Reports
Claim denials and prior-authorization delays are pushing days in accounts receivable higher, with industry median AR days up 2.4 days in 2026, K-38 Consulting said.
- On Tuesday, October 13, 2026, K-38 Consulting reported that medical practices are facing longer accounts receivable cycles, with industry-wide median days trending up by 2.4 days in 2026.
- Initial claim denial rates reached 11.8% industry-wide, up from 10.2%, driven by Medicare Advantage prior authorization backlogs and payers deploying AI-driven audit tools; each denied claim adds an estimated 15 to 30 days to the cycle.
- Cardiology, orthopedics, and oncology practices absorbed a disproportionate share of the 2026 AR days increase; for a $5 million billing practice, a 10-day increase ties up roughly $137,000 in working capital.
- Dallas Alford, founder of K-38 Consulting, advises practices to "track AR days alongside an aging report broken out by payer and denial category," warning that aggregate averages mask concentration problems.
- Tightening front-end processes—eligibility verification, authorization confirmation, and clean claim submission—prevents delays before they occur, K-38 Consulting recommends, benchmarking against Medical Group Management Association norms since healthy AR days vary meaningfully by specialty.
Insights by Ground AI
26 Articles
26 Articles
Coverage Details
Total News Sources26
Leaning Left1Leaning Right1Center19Last UpdatedBias Distribution90% Center
Bias Distribution
- 90% of the sources are Center
90% Center
C 90%
Factuality
To view factuality data please Upgrade to Premium
