What does accounts receivable turnover measure in the revenue cycle?

Accounts receivable turnover is a crucial metric in the revenue cycle, as it specifically measures the efficiency of a healthcare organization's collection efforts for payments due from patients, insurers, and other payers. By calculating how quickly a company can collect outstanding debts, this measure provides insight into the effectiveness of billing and collection processes. A higher turnover rate indicates that the organization is able to quickly convert its receivables into cash, suggesting strong cash flow management and effective accounts receivable practices.

In contrast, other options such as the time taken to provide services, the number of patients treated, or the cost of service delivery do not directly reflect the organization's ability to manage and collect outstanding charges. While these aspects can be important for overall operational performance, they do not specifically indicate how efficiently a healthcare provider is collecting payments owed to them, which is the primary focus of accounts receivable turnover.