The days of revenue in patient accounts receivable ratio provide a measure of the average time receivables are outstanding.

Question

Quizplus · Accepted Answer

The days of revenue in patient accounts receivable ratio measures the average time it takes for medical practices to collect payments from patients after services have been provided. It is calculated by dividing the accounts receivable balance by the average daily revenue. A lower number of days indicates a shorter collection period and better cash flow management. Therefore, option A is correct.

The Days of Revenue in Patient Accounts Receivable Ratio Provide