CDT 2027 and ICD-10-CM: clean up your claim crosswalk
Use the mismatch between ICD-10-CM and CDT effective dates to fix diagnosis pointers, payer rules and medical-dental claim workflows before January denials appear.
Two ways to calculate days in AR
| Method | Formula | Worked example |
|---|---|---|
| Collection-based | Outstanding AR ÷ (net collections in period ÷ business days in period) | $180,000 ÷ ($270,000 ÷ 65) = 43.3 days |
| Production-based | Outstanding AR ÷ average daily adjusted production over a defined window | $180,000 ÷ ($300,000 ÷ 90) = 54 days |
Same practice, same AR balance — an 11-day difference purely from the formula. Pick one, document it, and never compare across offices that use different methods.
The collection-ratio trap
If October cash is $92,000 and October adjusted production is $100,000, the period ratio is 92%. That does not mean 8% of October work is uncollectible: some October cash paid for September care, and some October work will be paid later. Use it as a pulse, not a verdict.
Measure realization by cohort
Cohort realization tracks receipts for a specific group of services (for example, all care delivered in March) against the expected collectible amount for that group, at 30, 60, 90, 120 and 180 days. It shows how much of what you earned you actually collect — and where it leaks.
Rules that keep reports honest
- State numerator, denominator, time basis and exclusions for every ratio
- Show N/A for zero denominators — not 0% or 100%
- Report count- and dollar-weighted denial rates
- Keep credit balances and unapplied cash separate from debit AR
How Dental Billing Community helps
Our monthly reports label every formula, separate production, expected collectible revenue and cash, and track cohort realization — so decisions rest on numbers that mean what they say. Try the revenue calculator, then book a free assessment.
Frequently asked questions
What is a good days-in-AR number?
Many dental RCM teams aim for under 30–35 days, but targets depend on payer mix and formula. Track your own trend.
Should we use gross or adjusted production?
Use adjusted (net) production for collection ratios; gross UCR fees overstate what is collectible for in-network care.
Sources & further reading
Educational content only — not legal, coding-certification or payer-specific advice. Code sets (CDT, CPT, ICD-10-CM, HCPCS) and payer policies change; always confirm against the current code manual and the patient's plan. CDT is © American Dental Association. CPT is © American Medical Association.