AR (Accounts Receivable)
Money owed to the agency for services already delivered but not yet paid. AR aging (0-30, 30-60, 60-90, 90+ days outstanding) is the primary indicator of billing health and cash flow risk.
Also known as: AR · accounts receivable · receivables · outstanding invoices · unpaid accounts
Accounts receivable (AR) represents the total amount owed by clients and payers for services rendered. AR aging tracks how long invoices have been outstanding: current (0-30 days), 30-day, 60-day, and 90+ day buckets.
High aged AR (60+ days) indicates billing problems, authorization gaps, claim denials, or payer delays. Unresolved AR eventually becomes write-offs (uncollectible bad debt).
AR management involves proactive follow-up on unpaid claims, denial management, and collections outreach for overdue private-pay invoices.
In home care, this means…
Reviewed weekly or monthly by finance staff. High 90+ day AR is an early warning signal for cash flow problems.
Related terms
Invoice →
A billing document sent to a private-pay client or insurance payer itemizing services delivered, dates, hours, rate, and total amount due. For government payers, the equivalent document is a claim.
Claim →
An electronic billing document submitted to a government or insurance payer requesting reimbursement for services rendered. Claims include authorization codes, service codes, units delivered, dates of service, and provider information.
Authorization →
A payer-issued approval to deliver and bill for specific services within a defined period or unit limit. Authorizations must be in place before scheduling any Medicaid, VA, or insurance-funded services.
Payer →
Any entity that pays for home care services: government programs (Medicaid, VA), managed care organizations, long-term care insurance companies, or private individuals and families (private pay). Payer mix is a critical driver of agency revenue and margin.