What is accounts receivable in NEMT?

Accounts receivable (AR) is the balance of completed, billed trips that payers have not yet paid. Brokers typically pay on 30-day cycles after claim acceptance, state Medicaid programs weekly to monthly, and facilities on net-30 invoices, so a growing NEMT company always has one to two months of revenue outstanding. Days sales outstanding (DSO) measures how long, on average, revenue sits in AR.

Why AR matters for NEMT

Drivers and fuel are paid this week; the trips they completed are paid next month. That gap is why NEMT businesses fail while profitable on paper. Manage AR by billing daily, working denials weekly, aging receivables by payer, and keeping a working-capital cushion or a line of credit sized to your DSO. Some providers use factoring companies that advance broker receivables for a fee; useful in a crunch, expensive as a habit.