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How Much Does Medical Billing Cost?

Medical billing companies price their services in a few common ways. Here is how each works, what changes the price and what to ask before you sign.

The common pricing models

Percentage of collections

The company takes a percentage of the payments it collects for you. Because they only get paid when you get paid, their incentives line up with yours. This is how we price our services, with no upfront or setup fees.

Flat monthly fee

A fixed monthly fee, often tied to a provider count or claim volume. It is predictable, but you pay the same whether collections go up or down.

Per-claim fee

A set price for each claim submitted. It can suit low-volume practices, but it does not reward the company for collecting on difficult claims.

Hourly or dedicated staff

You pay for time or for a dedicated biller. It gives control, but it comes close to the cost and management load of hiring someone yourself.

What affects the price

  • Specialty and how complex the coding is
  • Claim volume and average claim value
  • Payer mix, such as Medicare, Medicaid or commercial
  • Which services are included: coding, denials, patient billing, credentialing
  • The condition of your current A/R and any cleanup needed

Percentages quoted across the industry generally land in the single digits up to around ten percent of collections, but the range is wide and varies by specialty and by what is included. Treat any number you read online as a starting point and ask for a written quote.

Questions to ask before you sign

  1. Are there setup, software, minimum or reporting fees on top of the percentage?
  2. Is the percentage charged on all collections or only on new claims?
  3. What is the contract length, and what does it cost to leave?
  4. Who owns your data and your payer enrollments if you leave?
  5. What reports will I get, and how often?
  6. Who will actually work my account?

Compare with hiring in house

When you compare prices, include salary, benefits, software, training and turnover for in-house billers. Our guide to outsourced versus in-house billing walks through it. For a quote based on your own volume, request a free review.

Frequently Asked Questions

Do you charge setup fees?

We charge a percentage of successful collections, with no upfront fees. We will confirm the details in writing when we quote.

Is a percentage of collections better than a flat fee?

It depends on your practice. A percentage ties the company's income to yours, while a flat fee is more predictable.

How do I get a quote?

Request a free consultation. We review your claim volume, specialty and payer mix and give you a written quote.

Want help with your billing?

Get a free review of your collections, denials and A/R.

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