Most medical billing companies charge customers in between 2% to 10% of claim price. However, there are other ways billing companies charge for specialty clients or practices having special requirements.
In this comprehensive guide for medical billing costs in 2022, we have covered every aspect for practices to know, “how they will be charged for medical billing”.
In addition, we have compiled a bonus guide for you to gauge every third-party company. You can download it here.
Billing charges are costs incurred to physicians when a third-party medical billing company charges them. Such a company would charge a physician when a claim is repaid (Would you call it a cost?).
Service charges are a combination of some upfront charges & running costs.
Upfront charges include training, setup, administration licensing or other charges. While running costs are subscriptions, collection rates & more.
Most billing companies charge an upfront fee not more than $1500. However, this could go up depending on different specialty requirement that might be required.
Monthly charges are mostly the actual billed amount; a physician will pay to get more reimbursements.
The most common way billing companies charge physicians are following:
Normally a company would charge $3 to $7 for each claim.
This is the most common way for physician billing services (PBC offers tailored pricing according to your needs) to charge their customers. Average rate for this type of costing are generally between 2% to 10%.
Another way, RCM companies charge physicians is on hourly basis. This type of charge is quoted to smaller practices having fewer claims but complex.
The biggest factor that can affect the below mentioned figure is, the size of the practice/organization.
Average cost of billing services in percentage price claims is $5 – $8. While for flat fee charge, it is $5.
However, the chart below can accurately explain the average cost/services for any physician, lab, hospital or an independent physician.
Service offered | Lowest rate services | Medium rate services | Average rate services | Higher rate services |
Credentialing & Enrollment | ||||
Coding | ||||
Claim Submission | ||||
Payment Posting | ||||
AR management | ||||
Patient inquiries | ||||
Reporting | ||||
Dedicated Support managers | ||||
HIPAA compliance | ||||
Patient scheduling | ||||
Eligibility verification | ||||
Staffing | ||||
Full suite of RCM services |
For practices still confused between choosing in-house or outsourced billing, here is our detailed cost analysis sheet.
Cost/collection | In-house billing | Outsourced billing |
Billing department cost | ||
Subscriptions (EHR, Software, etc.) | ||
Claim processing cost | ||
% of collected claims | ||
Collections | ||
Cost of collections | ||
Net collections of incurred cost |
Furthermore, healthcare-billing malpractice can pose a significant damage & increase the risk of lawsuit. Therefore, it is always a better choice to outsource.
Get our no-obligation in-depth cost calculator for your own practice.
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