How is Days Sales Outstanding impacting your agency?

Days Sales Outstanding represents the number of days it takes to collect payment for services rendered. Typically, businesses that provide a service have a DSO of 30. This means that on average, they collect payments within 30 days.

Generally, it takes an agency 45-60 days to collect patient revenue from a payer. And, with complex payment models and changing regulations, it’s becoming more and more difficult to collect in a timely manner. It’s incredibly important for an agency that has lean cash flow to stay on top of DSO. A slight increase makes it harder to pay vendors and creditors on time. In addition, a high DSO can limit reinvestment in patient care, growth, and expansion.

Use the below Days Sales Outstanding Calculator to see how achieving a target of 45 days, or even 30 days, could impact your cash flow.

Days Sales Outstanding Calculator

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  • There are many common factors that negatively impact revenue for home health and hospice agencies. Request a personalized, no obligation Revenue Impact Analysis to see how these factors are impacting your agency and what you can do to overcome them.

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