What can a financial analyst learn from a hospital's number of days' revenue in receivables?
A)the hospital's accounts receivable collection efficiency
B)the average length of stay of patients in the hospital
C)the average daily occupancy rate of the hospital's beds
D)the proportion of hospital beds occupied by patients covered by self-pay patients

Question

Quizplus · Accepted Answer

The number of days' revenue in receivables indicates how long it takes for a hospital to collect payments from its patients or insurance companies. This metric is used to measure the hospital's accounts receivable collection efficiency. A lower number of days' revenue in receivables signifies that the hospital is efficiently collecting payments, while a higher number indicates that the hospital faces collection issues.

What Can a Financial Analyst Learn from a Hospital's Number