Compare Medical Billing Service Prices in 2025
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Outsourcing medical billing services has become a smart move for healthcare providers looking to streamline operations, speed up reimbursements, and reduce administrative burdens. Whether you’re a small private practice, a dental office, or a large hospital network, partnering with a professional billing company can save time, improve accuracy, and increase profitability. In this guide, we’ll walk you through the costs, what to look for when choosing a billing partner, top companies to consider, and answer the most common questions businesses like yours ask.
How Much Do Medical Billing Services Cost?
Medical billing prices are calculated based on the type of services rendered, the provider’s fee schedule, and the patient’s insurance coverage. When choosing a medical billing service, it is important to consider all of these factors in order to get the best possible price.
There are a variety of medical billing services available, and each offers different features and benefits. When choosing a medical billing service, it is important to consider the needs of your practice and your patients. Some services offer online claims submission and tracking, while others provide more comprehensive support that includes appointment scheduling, charting, and billing advice.
Medical billing service pricing can vary based on volume, complexity, specialty, and the services offered. Here’s a typical breakdown:
| Pricing Model | Average Cost |
|---|---|
| Percentage of Collections | 4% – 9% of collected revenue |
| Per-Claim Fee | $3 – $10 per claim |
| Hourly Rate | $25 – $50 per hour |
| Monthly Subscription | $500 – $2,000+ per provider |
Key Factors Influencing Cost:
- Claim volume and patient load
- Specialty (e.g., general practice vs. cardiology)
- Full-service billing vs. basic claim submission
- Additional services like patient invoicing, credentialing, and reporting
Medical Billing Services Buying Guide
When selecting a medical billing service, don’t just focus on price. Here are the key factors to evaluate:
1. Industry Experience Choose companies familiar with your specialty to ensure coding and compliance accuracy.
2. Transparency in Reporting Look for detailed reporting capabilities on collections, denials, and outstanding claims.
3. Software Compatibility Make sure their billing software integrates with your existing Electronic Health Records (EHR) or Practice Management System (PMS).
4. Compliance Ensure they adhere to HIPAA regulations to protect sensitive patient data.
5. Performance Metrics Ask about their average collection rates, first-pass resolution rates, and time-to-payment benchmarks.
6. Customer Support Opt for a provider that offers dedicated account managers and responsive customer support teams.
Medical Billing Services Comparison Table
| Company | Pricing Model | Specialty Support | Key Features | Best For |
|---|---|---|---|---|
| Kareo | % of collections (4%-7%) | Wide range | Cloud-based, EHR integration | Small to mid-sized practices |
| AdvancedMD | Subscription + add-ons | Broad specialties | Customizable dashboards | Growing medical groups |
| DrChrono | % of collections | Primary care focus | Mobile app, real-time tracking | Mobile-first practices |
| Athenahealth | % of collections (6%-9%) | Hospitals & clinics | Integrated EHR + billing | Large practices and hospitals |
| CareCloud | Flat fee + % collections | Specialist heavy | Revenue cycle management | Specialty practices |
How Much Does a Medical Billing Service Cost?
Which Companies are the Best For Medical Billing?
Medical Billing Services For Small Practices
Finding a medical billing service near you is easy. Get started below:
Advantages of Medical Billing Service
There are three very distinct advantages of hiring a medical billing service.
First, you can free up a considerable amount of time that you would otherwise spend on billing-related tasks. Second, you can be assured that your bills will be accurate and submitted in a timely manner. Third, you can focus on providing quality patient care, safe in the knowledge that your billing is being handled by experts.
Choosing a Medical Billing Service
When choosing a medical billing service, there are a few important factors to consider. First, you should make sure that the service is accredited by the AMA (American Medical Association). Second, you should inquire about the experience of the staff and their knowledge of coding and billing procedures. Finally, you should ask for references from satisfied clients.
Disadvantages of Medical Billing Service
There are only a handful of disadvantages of working with a medical billing service, and these are typically outweighed by the advantages. First, you will likely have to pay a monthly fee for the service. Second, you may have to give up some control over your practice’s billing process. Third, you may be required to sign a contract. However, these disadvantages are far outweighed by the advantages of working with a medical billing service.
The medical billing process can be complex and confusing, but there are medical billing services that can help to make the process simpler and more efficient. These services can help to ensure that claims are submitted correctly and in a timely manner, and that providers receive accurate and prompt reimbursement for their services. Medical billing services can also help patients to understand their bills and to resolve any issues that may arise.
Frequently Asked Questions (FAQs)
Q1: Is it cheaper to outsource medical billing or do it in-house?
In many cases, outsourcing is more cost-effective, especially for small to medium-sized practices that don’t want to maintain a full-time billing staff and invest in expensive software.
Q2: How quickly can a billing service start submitting claims?
Onboarding typically takes 2-6 weeks, depending on the provider and your software setup.
Q3: Can billing companies handle rejected claims?
Yes, reputable companies will manage claim rejections and resubmit them, minimizing lost revenue.
Q4: How do I know if my patient data will be secure?
Always confirm that the billing service is HIPAA-compliant and ask about their encryption standards and security protocols.
Q5: Are there hidden fees I should look out for?
Some companies may charge extra for services like patient invoicing, collections, or detailed reporting. Always ask for a complete fee breakdown before signing a contract.
Top Medical Billing Companies to Consider
Here’s a quick look at some trusted medical billing service providers:
- Kareo: Ideal for smaller practices seeking cloud-based, integrated solutions.
- AdvancedMD: Great for growing clinics that need scalable billing and practice management.
- Athenahealth: A top choice for larger organizations seeking end-to-end EHR and billing.
- DrChrono: Perfect for mobile practices needing flexible, real-time billing solutions.
- CareCloud: Best for specialty medical practices wanting detailed revenue cycle management.
Content Contributor
Author: Dr. Emily Stanton
Medical Practice Consultant & Revenue Cycle Management Expert
Dr. Emily Stanton has over 18 years of experience helping healthcare organizations optimize their billing processes and maximize revenue. She is a recognized thought leader in medical finance efficiency and a proud content contributor for Kwote Advisor, where businesses find trustworthy advice for smart purchasing decisions.