How to Achieve a DSO of Less Than 30 Days: Best Practices

Why DSO < 30 Matters

DSO (Days Sales Outstanding) measures how long it takes to collect payment after services are delivered. A DSO above 30 days ties up cash and slows growth. Achieving DSO < 30 shows operational discipline across scheduling, billing, and collections.

Targets to aim for:

• DSO: < 30 days

• First-Pass Resolution Rate (FPRR): ≥ 90%

• Denial Rate: ≤ 8%

• AR > 90 Days: ≤ 10% of total AR

• Net Collection Rate: ≥ 95%

Five Best Practices to Drive Sub-30 DSO

1. Front-End Precision

• Verify insurance and benefits at scheduling.

• Secure authorizations before visits.

• Provide cost estimates and collect copays/coinsurance upfront.

• Use card-on-file and payment plans to reduce delays.

2. Clean Claims from the Start

• Capture charges same day and close charts daily.

• Ensure accurate coding with correct modifiers.

• Submit claims daily with automated scrubbing to cut rejections.

3. Fast Posting & Reconciliation

• Enroll in ERA/EFT with all payers.

• Post payments within 48 hours.

• Work zero-pays immediately and reconcile bank deposits daily.

4. Aggressive AR Follow-Up

• Begin follow-up within 15–20 days.

• Use denial playbooks by code type.

• Submit appeals quickly; target > 40% overturn.

• Track underpayments against contracts weekly.

5. Smarter Patient Collections

• Send digital statements first, followed by paper.

• Use text-to-pay, QR codes, and portals for convenience.

• Offer autopay plans tied to balance size.

• Define thresholds for write-offs and bad debt.

30–60–90 Day Action Plan

• Days 0–30: Baseline DSO, enforce same-day charges, and launch POS collections.

• Days 31–60: Implement denial playbooks, automate chasers, and add digital billing tools.

• Days 61–90: Monitor KPIs, optimize payer worklists, and lock in monthly governance.

Core Metrics to Monitor

• DSO < 30

• FPRR ≥ 90%

• Denial rate ≤ 8%

• AR > 90 days ≤ 10%

• Posting turnaround ≤ 48 hours

How ACCORDPRO Can Help

We specialize in revenue cycle systems that:

• Strengthen front-end workflows and POS collections

• Ensure clean claims and faster cash posting

• Recover denials and underpayments effectively

• Provide KPI dashboards and compliance-ready audit trails

Final Take

Achieving DSO < 30 days is not luck—it’s process control. By standardizing workflows, leveraging automation, and enforcing accountability, practices can accelerate cash flow and reduce financial risk.

Ready to shorten your cash cycle?

 📞 Call ACCORDPRO at 425-215-0517 or visit www.accordpros.com to schedule a DSO strategy consult.