Every day that a claim sits in accounts receivable (AR) represents delayed revenue, added administrative stress, and less financial stability. For behavioral health providers, these long AR cycles not only affect cash flow but also create ripple effects that can limit resources, staffing, and the ability to expand services. With nearly 60 million U.S. adults (or 23.9%) receiving mental health treatment each year, behavioral health providers are not in a position to step back.

Fortunately, having the right systems in place allow providers to significantly reduce AR days and improve their bottom line. Let’s talk more about accounts receivable and five winning strategies that can help your behavioral health organization take control.

What is Accounts Receivable in Behavioral Health Billing?

AR refers to the money a behavioral health practice is owed for services that have already been provided but not yet paid for.

Let’s say a client attends a therapy session. The provider delivers the service that day, but payment doesn’t arrive immediately. Instead, the provider submits a claim to the client’s insurance company. Until the insurance company processes the claim and sends payment, the cost of that therapy session sits in accounts receivable (AR).

If the client owes a copay or deductible, that amount is also considered part of AR until it’s collected. In other words, AR represents all the money still owed to the provider after care has been delivered, whether from an insurance company, a patient, or both.

While the concept of AR makes sense, providers can face significant cash flow challenges when claims aren’t submitted correctly, followed up on, or collected in a timely manner. Therefore, effective AR management ensures that revenue flows steadily so that behavioral health providers can cover operating costs, invest in staff, and focus on delivery quality care.

5 Ways to Reduce Days in Accounts Receivable

Accounts receivable is a critical measure of a practice’s financial health. Here are five proven strategies that can help reduce days in accounts receivable.

1. Strengthen Front-End Processes

The best way to shorten accounts receivable cycles is to prevent issues before they even begin. That means tightening up front-end processes such as patient intake, eligibility verification, and prior authorization. When insurance details are confirmed up front and documentation is accurate, providers minimize the risk of claim denials later on.

To make this happen, train your staff to double-check patient information, collect copays at the time of service, and verify coverage before appointments. Partnering with a reliable behavioral health billing company will also do you wonders, as they play a significant role in keeping claims clean and payments timely.

2. Submit Clean Claims the First Time

A “clean claim” is one that is accurate, complete, and properly coded when it’s first submitted to the payer. This means all patient demographics, provider information, diagnosis codes, treatment codes, and authorization details are correct and aligned with the payer’s requirements. When a claim is clean, it moves through the system smoothly, resulting in faster reimbursement.

To prevent delays, providers can take proactive steps such as investing in staff training and coding expertise, using claim-scrubbing software to catch errors before submission, and implementing internal quality checks to review claims in real time. These safeguards not only reduce rework but also improve cash flow and strengthen payer relationships.

3. Prioritize Consistent AR Follow-Up

Submitting a claim is only half the battle; follow-up is where the real work happens. Consistent monitoring ensures claims don’t fall through the cracks and denials don’t quietly pile up unnoticed.

For behavioral health providers, having a structured workflow for AR follow-up is essential. This should include regularly reviewing aging reports to identify outstanding balances, promptly resubmitting corrected claims to minimize delays, and escalating unresolved issues before they grow into revenue losses.

Timely follow-up also gives providers valuable insight into recurring problems, such as coding errors or payer-specific denial trends, allowing them to fix root causes instead of repeatedly addressing symptoms. By assigning dedicated staff—or partnering with a billing company like Integrity Billing—practices can ensure that follow-up is proactive and consistent.

4. Implement a Denial Management Process

Denials are inevitable in healthcare billing, but they don’t have to mean lost revenue. In fact, an effective denial management process can transform rejections into opportunities for recovery and process improvement.

The first step is to track and categorize denials consistently, so the most common issues can be identified. Whether it’s missing authorizations, incomplete documentation, or incorrect coding, patterns often emerge that point to where processes need to be strengthened. For example, if a large percentage of denials stem from authorization errors, adjusting intake workflows to verify coverage and approvals upfront can prevent repeated delays.

Equally important is responding quickly. Every day that a denied claim sits unresolved extends the AR cycle and increases the risk of write-offs. By appealing denials promptly and resubmitting corrected claims, providers keep revenue moving and demonstrate to payers that they are diligent and organized.

5. Consider Outsourcing for Expertise and Efficiency

For many behavioral health practices, limited staff and growing administrative demands make it difficult to manage accounts receivable effectively. Front office teams are often stretched thin, causing claims to linger unresolved and revenue to get delayed.

Outsourcing AR management to a trusted partner is an effective way to relieve this burden. By leveraging specialized expertise, advanced billing technology, and a structured follow-up process, practices can ensure claims are monitored and resolved without overwhelming their staff.

At Integrity Billing, we focus exclusively on revenue cycle management for behavioral health providers. Our team understands the unique challenges of the field, from complex payer requirements to sensitive patient relationships, and we handle claims, follow-up, and collections with both precision and care. By partnering with us, providers can reduce AR days, strengthen cash flow, and protect the patient experience

Closing Thoughts

Reducing days in accounts receivable isn’t just about improving the numbers—it’s about creating financial stability that allows behavioral health providers to focus on patient care. By strengthening front-end processes, submitting clean claims, prioritizing follow-up, managing denials, and considering outsourcing, practices can transform their AR from a persistent challenge into a streamlined, reliable process.

Integrity Billing is here to help you achieve that transformation. Let’s work together to keep your revenue cycle healthy, so you can focus on what matters most—your patients.