Preface
This is the online version of The Art of DAR: Metrics, KPIs, and the Healthcare Revenue Cycle, a book currently under early development.
Days in Accounts Receivable (also known as DAR or Days in AR) is a common financial metric belonging to a group of ratios called efficiency ratios. It measures the average amount of time it takes for a business to collect money owed from the responsible party for services rendered and billed.
As its name implies, the unit of measurement employed by this particular metric is days, or rather the average number of days from the moment a physician provides a service until the patient or guarantor pays for that service. This number can tell you much about the financial health of the business.
This book is designed to take you from knowing nothing about Days in AR to being able to interpret and make proper use of it and it’s underlying data at a very high level. You will gain a deep understanding of the mathematical and statistical foundations that form the DAR metric, as well as developing many useful techniques to solve common revenue cycle challenges.