How Much Do Medical Billing Services Cost?

If you're looking for medical billing, you'll need to know how much medical billing services cost. This guide will help.

If you've been running your practice but can't keep up with the billing on your own anymore, it may be time to hire a medical billing service. You might be worrying about the price of outsourcing your labor. Many services offer affordable billing to make your life easier.

Medical billing companies charge your practice three separate ways: through setup fees, administrative fees, and per-claim charges. A medical billing service can cost as little as $900 annually or $10,000 and up.

Worry no longer about how much medical billing services cost. Here is a quick guide to the average cost for medical billing, as well as what to look for when choosing a billing company. Arm yourself with information before proceeding.
Get Quotes

The Benefits Of Hiring A Medical Billing Service

Compare Prices for Business NeedsKeeping detailed billing records is vital to a practice. After all, healthcare is still a business. If you're unable to do it yourself, it is in the best interest of your practice to hire a billing company.

Billing services know all the ins and outs of dealing with insurance companies and with patients. They have tried and true processes for getting payment. This will lead to decreased stress and increased revenue for your practice.

You also don't have to worry about additional employees. Using a billing service takes the stress of labor-management off your hands, so you can focus on your patients. This also takes away the headache of providing a new employee with insurance, training, PTO, etc. in addition to their salary.

How Much Does A Medical Billing Service Cost?

Paying a medical billing company may seem confusing at first. On top of paying up front and then every month, there are other various fees associated with medical billing. Though it may seem like an overwhelming amount of money, every dollar goes towards improving their service.

Setup Fees

Cost Cutz Buyers Guide

These are the costs you pay upfront before the billing service even begins to work. These costs vary due to multiple factors: onsite or SaaS, technology used, the volume of work required. Some companies don't charge for onboarding, but many do.

Generally, companies charge around $300 per physician at the practice. If there are multiple offices with many physicians, you can expect to pay $1,000 per practice.

If you hire an onsite billing service, expect to also pay for their office setup.

Administrative Fees

These are charges you pay to the company separate from setup fees and per-bill costs. These fees ensure they can hire more employees, update their software, and maintain their office (if not onsite). They may charge you monthly or annually, depending on their business model.

Administrative fees can range from $25 to $125 each month. If your service charges annually, you may have to shell out between $3,000 and $6,000 once a year to keep the service.

Billing Fees

After the setup and administrative fees have been paid, your practice will also have to pay a flat amount on the billing as well. Companies go about this in a few different ways:

  • Flat Dollar Rate
  • Percentage
  • Hourly Rates

The flat dollar rate will cost you $4 to $6 per claim filed. Percentage per claim rates are usually between 5 and 10 percent of the total cost. Per claim rates are the most common.

Some companies use a hybrid percentage/dollar rate model, where they use different methods for different kinds of claims.

Hourly rates are less common. These companies charge you a flat rate based on the number of hours spent filing a claim. As this is harder to keep track of than per claim rates, you likely won't find many companies that charge by the hour.

Consider the volume of your practice before deciding whether to choose a per claim or hourly model. High-volume practices are often happier with a per claim rate.
Get Quotes

What's The Total Price?

MEDICAL BILLING SERVICE COSTIn all, you can expect to pay between $1,000 and $12,000 annually for outsourced medical billing. Though it may give you a sticker shock, using a billing company ensures that you receive money from patients and insurance companies more reliably.

Beware companies that charge unusually low rates. This often indicates that they pay their employees poorly or do not put enough money into the upkeep of their software and premises. Though the low price tag is appealing, you will miss out on high-quality labor.

To maintain your client base and prevent future problems, hire a fairly-priced service. Know that you will get what you pay for.

Onsite Billing vs. Software As A Service (SaaS)

You can hire a billing company that will work onsite in an office you provide. This can provide you with a more personalized billing team and instant communication but is often more expensive. An onsite billing team often requires multiple days to set up their computers and servers, and will require an IT professional as well.

Remote billing companies, which fall into the software as a service (SaaS) category, are a great option if you're low on space or don't have as much money to shell out. These services offer “one size fits all” software and are sometimes more difficult to communicate with, but are efficient and cost-effective.

Whether you choose onsite or SaaS billing is up to you. Onsite billing is often better for large practices or firms, whereas SaaS is better suited to small firms that want an electronic paper trail.


Here are a few reputable medical billing companies with excellent track records:

  • Kareo
  • AdvancedMD
  • Ciox
  • Capture Billing
  • NueMD

Many companies offer both onsite and SaaS options for different prices. Find a company you trust, then work with their representatives on deciding what's best for your firm.

Now You Know How Much You'll Pay For Billing

It's never easy to admit you're in over your head, especially when it comes to the business side of healthcare. Thankfully, medical billing services are a shameless way to streamline your practice. Using a billing service will make paying for healthcare easier for you, your physicians, and your patients.

Shop around for the billing service that's right for you. Now that you know how much medical billing services cost, go ahead and get a quote. Go choose the service that's right for you.
Get Quotes

Medical Billing Service Cost Savings – How to Save Money

Save MoneySome health care providers shy away from medical billing due to their misconception that it's too expensive for their business. Others delay shopping around for a new vendor simply because they fear that a new vendor will inevitably put a dent in their income. But at the end of the year, most health care facilities and medical practices to achieve a very profitable net profit by using a high-quality medical billing service to help them manage their health insurance and prescription claims.


While there's no denying that a billing service is a necessary expense, many small and medium-sized health care providers can reduce their overall medical insurance premium costs by using the billing and coding program offered by their existing provider. This reduces the overall cost of their medical insurance plan. When choosing your provider, make sure that they offer a billing and coding program as part of their health insurance package. For some, this is an added bonus – particularly when the billing and coding package came with additional benefits like a free annual or monthly medical insurance quote, reduced waiting time, or reduced premiums.

Foot pain? Check out our Neuro Ease Review