Which ratio is primarily used to measure how long it takes to receive payments from patients?

The days in receivables ratio is the metric specifically designed to assess the average number of days it takes for a healthcare organization to collect payments from patients after a service has been rendered. This ratio is crucial for understanding cash flow management within the organization. A lower number of days indicates that the organization is efficient in collecting payments, while a higher number may signal potential issues with billing and collections processes.

This ratio provides insights into how effectively a healthcare facility is managing its accounts receivable, which is vital for maintaining liquidity and operational stability. An efficient collection process is essential for ensuring that the organization can meet its financial obligations and continue to provide care.

In contrast, the other choices measure different aspects of financial health. The debt to equity ratio assesses the organization's leverage and financial structure; days cash on hand indicates liquidity and the ability to cover expenses; and days in payables reflects how long the organization takes to pay its suppliers. Each of these metrics serves a unique purpose, but they do not specifically address the collection period for patient payments, making the days in receivables ratio the most relevant choice for this question.