What action will help reduce the practice's Days Accounts Receivable (DAR)?

Timely submitting encounters is essential for reducing a practice's Days Accounts Receivable (DAR) because it accelerates the billing process and ensures that claims are processed more quickly by payers. When encounters are submitted promptly after services are rendered, it allows for a faster turnaround in receiving payments, ultimately leading to a decrease in the average number of days accounts receivable remain outstanding. This improved efficiency in the billing cycle can positively impact cash flow, enabling the practice to better manage its finances.

In contrast, while increasing patient volume can lead to an increase in overall revenue, it does not directly address the timeliness of billing and may even complicate claims processing if the practice is not equipped to handle the increase efficiently. Implementing new technology can enhance operational efficiency but may not have an immediate effect on DAR if not paired with timely claim submissions. Reducing operational costs is important for overall financial health, but it does not directly influence how quickly the practice collects payments from insurers and patients.