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Core RCM term

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 helps

Ventus shortens the wait after submission by checking claim status with each payer on a schedule, not only when someone remembers, and by showing why denied claims were denied. Results and next steps are written back into the systems your team already uses.

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