What is Days Sales Outstanding (DSO)?
Definition
Days Sales Outstanding (DSO) measures the average number of days it takes to collect revenue after a sale or service has been completed. In healthcare, DSO is closely related to AR Days and reflects the overall efficiency of the revenue collection process. A lower DSO indicates faster conversion of services into cash.
Why It Matters
DSO is a critical indicator of financial health that investors, lenders, and leadership teams monitor closely. High DSO strains working capital and may require organizations to take on debt to fund operations. For DSOs and multi-location practices, tracking this metric across sites reveals operational inconsistencies that need attention.
How Ventus AI Helps
Ventus AI drives down DSO by automating the entire post-claim lifecycle, from status inquiry through payment posting and patient billing. Our AI agents pursue outstanding balances simultaneously across all payers, eliminating the sequential bottlenecks of manual workflows. Organizations using Ventus typically reduce DSO by 10-15 days within the first quarter.
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