How Much Do  Medical Billing Services Cost in 2025? (Updated June 17, 2025)

Medical billing services can cost from $900 to over $10,000 depending on enterprise size and whether or not you want on-site servers. Web-based or “cloud” software runs on off-site servers and can cost as little as $40 to $150 per month.

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Medical billing services charge in one of the following ways:

1. Percentage-Based Fee: This is the most common pricing model. The billing service charges a percentage of the collected revenue, usually ranging from 5% to 10% of the practice’s collections. This model aligns the billing company’s incentives with the practice’s revenue performance.
2. Flat Fee per Claim: Some services charge a fixed amount for each claim they process, regardless of the claim’s value. This fee can range from around $1 to $10 per claim.
3. Monthly Fixed Rate: Less common, this model involves a fixed monthly fee regardless of the number of claims or the revenue collected. This can be advantageous for practices with high billing volumes but may be less cost-effective for smaller practices.
4. Hybrid Models: Some services use a combination of the above methods.

Extra fees may apply for services like patient billing inquiries, coding, or practice management services.

Top Medical Billing Service Companies to Consider

 

 

 

Navigating the complexities of medical billing can be challenging for healthcare providers, but using a medical billing service provides many advantages that can greatly improve practice productivity and income.

From reducing administrative burdens to improving patient satisfaction These services are now essential in modern healthcare.

But how much do they cost, and what factors influence these costs? This article explores the advantages of medical billing services, their pricing structures, and future predictions for costs, giving advice for practices trying to improve their billing processes.

What Are the Advantages of Using a Medical Billing Service and Learning About Medicare and Medicaid Billing?

Using a medical billing service can increase your practice’s financial success by simplifying healthcare reimbursement and ensuring billing rules are followed, including compliance regulations and the use of CPT codes and ICD-10.

As insurance claims and coding services get more complicated, outsourcing billing can lighten administrative tasks and improve how you manage your revenue cycle, including medical coding and EHR integration.

This lets healthcare providers concentrate on offering quality care to patients while enhancing billing accuracy, managing patient accounts, and lowering the chances of claim denials.

These billing services are beneficial for saving costs, analyzing profits, keeping up with changing regulations, and ensuring payment reconciliation, leading to increased patient satisfaction and stable finances. Those curious about how cost-effective medical billing services can be for your practice might appreciate our guide on their financial implications in 2025.

1. Increased Revenue

One of the most significant advantages of utilizing billing services is the potential for increased revenue through improved claims processing and healthcare reimbursement.

By using simpler processes and modern tools, such as billing software, these services can greatly improve how claims are managed. This reduction in paperwork lowers errors, improves billing methods, and leads to fewer denied claims.

When clinics use billing services, they can adjust prices based on market trends and patient groups. This new method helps healthcare providers predict financial outcomes, improve practice income by predicting finances, get the most payments, and keep everything running smoothly.

2. Reduced Administrative Burden

Outsourcing medical billing services can greatly reduce the administrative work and administrative costs for healthcare providers. This allows them to concentrate more on patient care instead of the detailed tasks of billing and coding, including managing payment models and patient collections.

By using advanced billing automation and specialized billing services, healthcare organizations can make their operations more efficient, significantly lowering the labor costs linked to manual billing tasks and improving patient records management.

This system makes tasks faster and more accurate, helping practices handle claims quicker, which directly affects how income is controlled and revenue is generated.

Specialized billing services are equipped with the latest technology and best practices, further minimizing errors, improving technology in billing, and reducing the time spent on correcting billing discrepancies. For those interested in tailored solutions, it’s worth exploring top medical billing services specifically designed for small practices.

This method improves the workflow, helps providers use resources wisely, and controls healthcare costs, resulting in better patient care.

3. Improved Accuracy and Compliance

Using a medical billing service improves accuracy and keeps up with changing rules in healthcare, reducing the number of denied claims and ensuring billing transparency.

These services apply strict coding rules that adhere to established guidelines, ensuring every claim is thoroughly prepared to meet all necessary criteria, such as competitive analysis and industry standards.

By regularly checking coding practices, coding accuracy, and keeping up with current compliance rules, the billing service greatly improves accuracy.

Regular billing checks are performed to identify mistakes, provide staff with the necessary training and feedback, and maintain compliance with billing rules.

This active method of audits encourages a sense of responsibility and accuracy, helping healthcare providers manage the detailed process of claim submissions, improving their revenue cycle management, and enhancing revenue cycle optimization.

4. Better Patient Satisfaction

Better patient satisfaction can be achieved through the efficient handling of patient billing, clear communication regarding their healthcare costs, and ensuring patient financial responsibility.

Using professional billing services helps keep billing correct, provides clear billing information, and makes financial details easy to understand for patients from various backgrounds. This openness builds trust, because patients understand and are involved in their healthcare costs.

By reducing billing mistakes and improving cost efficiency, healthcare providers can improve service quality, which is important for keeping good relationships with patients. This can make patients happier because they understand their billing better, encouraging them to get the services they need without worry, and improving patient-centered billing.

How Much Does a Medical Billing Service Cost?

It’s important to know the costs of medical billing services to plan and manage your practice’s finances and understand how much these services charge.

These service prices can differ widely based on factors like the type of services needed, the number of claims handled, and the specifics of payer contracts. As healthcare costs rise, it’s important to look at various service charges, ways to estimate costs, market trends, and billing metrics to find a solution that fits your practice’s requirements and budget. To help you navigate these complexities, consider exploring insights from our analysis on Medical Billing Service Costs in 2025.

Medical Billing Cost Analysis 2025: Exploring 2025 Healthcare Costs

12 Best Medical Billing Service Companies, Pricing & Benefits

Here’s a table listing 12 top medical billing companies, their last known costs, and their advantages:

Company Name	Last Known Cost	Advantages
Athenahealth	3% to 7% of monthly collections	High first-pass acceptance rate; comprehensive reporting tools; integrated practice management and EHR solutions.
CareCloud	3% to 7% of monthly collections	Flexible service offerings; advanced claim scrubbing; customizable solutions for various practice sizes.
DrChrono	4% to 8% of monthly collections	User-friendly interface; integrated EHR and practice management; suitable for new and small practices.
AdvancedMD	3% to 8% of monthly collections	High first-pass acceptance rate; scalable solutions for large practices; comprehensive RCM services.
Tebra (Formerly Kareo)	4% to 9% of monthly collections	Intuitive software; extensive training materials; effective claim tracking and management.
RXNT	Starts at $193 per month, per provider (RCM software only)	Cost-effective; supports in-house billing teams; comprehensive billing tools; no long-term contracts.
CureMD	Starts at 4% of collections Medical Billing Service Review	All-in-one solution; supports multiple specialties; high first-pass claims rate; free maintenance and support.
ChartLogic	3% to 6% of collections per month Medical Billing Service Review	Cost-effective; includes implementation and training; user-friendly platform; 24/7 support.
NueMD	Bundled billing and EHR services from $149 to $249 per month	Affordable bundled services; user-friendly interface; suitable for small to medium practices.
eClinicalWorks	Around 5% of collections, plans from $350/month	Comprehensive EHR and practice management solutions; customizable workflows; strong reporting capabilities.
Medisoft	Pricing varies; contact for details	Reliable billing and practice management; suitable for small practices; user-friendly interface.
NextGen Healthcare	Pricing varies; contact for details	Comprehensive solutions for large practices; integrated EHR and practice management; robust reporting tools.

Our Top Picks for Medical Billing Services

We have reviewed some of the top medical billing services to help you see how the prices differ from one company to the next.

AdvancedMD

We’ll start with a plan from a top accounting and payroll company offering full integration and automation with your current system.

Best for Small to Medium-Sized Companies
Pricing is determined via their “build a bundle” feature or pre-configured plans. Custom bundles provide maximum savings, while pre-configured plans typically charge a 4-8% practice collections rate.

Practice Management Software Solutions

• Popular Bundle: $435/month per provider for unlimited encounters, ideal for high patient volume.
• Per-Encounter Plan: $1.42 per encounter, averaging $150/month per provider, suited for low-volume practices like chiropractic, physical therapy, and behavioral health.

EMR/EHR Software for Medical Billing

• Unlimited Plan: $729/month per provider for unified PM and EHR, ideal for high patient volume.
• Per-Encounter Plan: $2.18 per encounter, perfect for low-volume practices.

Both options offer flexible billing to suit your needs.

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NueMD

Here’s a plan from a top payroll company with full system integration and automation, ideal for small to medium-sized businesses.

Pricing Options: Choose between “build a bundle” for maximum savings or pre-configured plans (4-8% practice collections rate).

Practice Management Software Solutions

• Unlimited Plan: $435/month per provider, great for high patient volume.
• Per-Encounter: $1.42 each (about $150/month), ideal for low-volume practices like chiropractic and therapy.

EMR/EHR Software for Efficient Billing

• Unlimited Plan: $729/month per provider, perfect for high patient volume.
• Per-Encounter: $2.18 each, best for low-volume practices.

Flexible billing ensures the best fit for your practice.

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MTBC PracticePro – Medical Billing Service Features

MTBC is a unique combination of being an IT healthcare company. While some of their plans are focused on record and practice management, they do have one that provides end-to-end revenue cycle management.

They don’t provide pricing on their website, so you’ll need to request a quote for exact pricing. This isn’t necessarily a bad thing though, as it means you’ll get a customized solution for your practice.

The PracticePro plan includes HIPAA compliance auditing, EHR management, practice management system, and patient management systems.

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Kareo – Complete Medical Billing Solutions

If you need a cloud-based system, Kareo offers various plans for billing and practice management tasks like patient registration, billing, medication, and patient management.

Kareo Marketing Services

Includes billing plus marketing services like patient feedback, online reputation management, and communication tools. Cost: $300/month per provider.

Kareo Billing Software

Focused on billing and practice management, with features like automated reminders, credit card processing, customizable dashboards, analytics, reporting, and dedicated support.

Kareo Managed Billing Services

Fully customized to your needs with fee management, scheduling, performance management, data import/export, and dedicated support. Pricing available upon request.

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Medical Billing Star – Professional Billing Services

This service offers a 7-day free trial and transparent billing with three solutions to choose from:

Full-Service Medical Billing

• Cost: 4.99% (5% increase for collections)
• Features: Team of 7 specialists, certified billers, free EMR support, no monthly minimum, and 97% AR reduction.

Billing & Coding Services

• Cost: 6.99%
• Features: Reduces backlogged revenue, improves coding accuracy, and includes 24/7 support.

Standalone Coding Services

• Cost: $0.99 per claim
• Features: AAPC-certified coders, coding audits, scrubbing tools, and centralized coding.

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GroupOne – Medical Billing Software & Services

GroupOne offers tailored solutions to meet your practice’s needs without unnecessary costs.

Subscription-Based Billing Solutions

Two plans: $550 and $599/month, covering bundled practice management and EHR services. Ideal for practices with 1-3 providers, offering long-term cost savings.

OneRate Medical Billing Pricing Model

Purchase a license for $10,000 ($5,000 for each additional license) to own the eClinicalWorks EHR system with local server or cloud hosting. A scalable solution for practices seeking long-term savings.

OneRate

Pay 3%-7% of your monthly net collections for professional RCM services, free use of eClinicalWorks EHR, and practice management. Perfect for practices aiming to minimize cash flow disruptions during EHR transitions.

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Medical billing service prices can vary greatly depending on how robust of services you need and the type of fees setup you choose.

The Medical Billing Cost Analysis 2025 offers information about the size and functioning of the U.S. market for outsourcing medical billing. It highlights market values and shares that suggest a growing reliance on outsourced billing services within healthcare settings, including emerging trends such as telehealth billing and automation in billing.

U.S. Medical Billing Outsourcing Market data reveals a market value of $6.28 billion in 2024, with projections indicating significant growth to $12.26 billion by 2030. This growth suggests increasing adoption rates of outsourcing among healthcare providers, driven by the need for efficiency, cost reduction, and focus on core medical services, while also integrating EHR systems and managing healthcare expenses through effective claims tracking and denial management.

• Market Share in 2024: 58.9% of billing services are outsourced, underscoring a strategic shift by healthcare facilities to externalize non-core operations for better resource management. This allows hospitals and clinics to mitigate administrative burdens and improve revenue cycle management.
• Hospital End-Use Share: Hospitals represent a 46.95% share in outsourcing, emphasizing the choice for expert billing services to handle complicated insurance claims and follow regulations. This reliance on outsourced services reflects a push for operational efficiency and financial accuracy.

The Medical Billing Cost Analysis 2025 shows a clear trend towards contracting services in the U.S. healthcare system. Healthcare providers are increasing outsourcing to improve service quality and manage changing regulations and economic challenges.

This trend will probably keep going as the healthcare field deals with challenges such as more patients, complicated billing processes, and the demand for smoother operations. The anticipated market growth to $12.26 billion by 2030 suggests that providers will increasingly value outsourcing for its ability to deliver effective, compliant billing solutions.

1. Flat-Fee Pricing

Flat-fee pricing is a clear system where a medical billing service charges one fixed amount for all services, making budgeting easier.

This pricing structure can greatly lower the financial uncertainty that often comes with changing billing methods, helping practices manage their finances more easily.

By combining expenses into a single clear fee, it makes it easier for healthcare providers to see their total costs.

While the cost-effectiveness of such service packages is appealing, there can be potential drawbacks, such as limited flexibility in services offered and the risk of underutilization should the billed services exceed anticipated needs.

Practitioners should look at both cost savings and quality care when considering this pricing model, making sure billing is clear for better choices.

2. Percentage-Based Pricing

With percentage-based pricing, medical billing services charge a fee based on the percentage of collected revenue, aligning their success with your practice’s revenue generation.

This model forms a cooperative relationship between the billing company and healthcare providers, motivating the billing company to work harder on collecting revenue and improving insurance claims processing.

Basically, as the medical billing service improves how it analyzes costs and follows up on unpaid claims, it positively affects the financial results of the healthcare practice it supports.

As a result, this connection encourages both parties to simplify operations and reduce unnecessary expenses, which helps in better financial planning.

By ensuring that both parties benefit from improved collection rates, the practice can allocate resources more strategically, enabling better budgeting and investment in areas that promote growth.

3. Per-Claim Pricing

Per-claim pricing is a billing model where you pay for services based on the number of claims processed. This makes it a good choice for practices with changing claim volumes.

This model lets healthcare providers adjust their costs based on real workload, which can vary with seasonal needs or shifts in patient numbers.

By tailoring costs to the number of claims submitted, practices can better manage their budgets, maximizing cost-effectiveness during lean times or busy periods.

It makes service delivery smoother, as providers are urged to concentrate on processing claims quickly instead of being concerned about constant overhead expenses.

This flexibility helps medical practices and makes the patient experience better, making healthcare services more responsive and accountable. It also supports telemedicine services and other new healthcare solutions.

4. Monthly Subscription Pricing

Monthly subscription pricing offers a predictable expense model for billing services, enabling practices to budget effectively over time.

This method helps improve cash flow management and allows healthcare providers to expand their services according to patient numbers and changing requirements.

Using subscription models, clinics and hospitals can make budgeting easier, ensuring they always have access to essential billing services without sudden financial difficulties.

Knowing the cost of a subscription in healthcare helps you plan your expenses and make informed decisions.

In the end, this system improves financial stability and allows practices to concentrate on better patient care instead of dealing with unpredictable billing changes, aligning with healthcare billing trends and practice management goals.

5. Additional Fees to Consider

When evaluating medical billing services, it’s essential to consider additional fees that may not be immediately apparent, as these can impact the overall cost-effectiveness.

Many service providers may charge hidden costs for administrative work, insurance verification, or claim resubmissions, which can unexpectedly inflate the total bill.

Knowing about possible service charges is important for practices that want to manage their budgets. Financial transparency should be a key criterion during the selection process-businesses need to engage with partners willing to disclose their fee structures openly.

Looking closely at these hidden costs helps in making well-informed choices and builds trust between healthcare providers and billing specialists.

What Factors Affect the Cost of a Medical Billing Service?

Many things can influence the price of medical billing services, such as the size of your practice, how many claims you handle, and where you are located.

All these aspects are important in setting the cost and should be thought about carefully when picking a billing service provider. Knowing what makes services different and what affects costs can help you make choices that fit your financial plans.

1. Size of Practice

The size of your medical practice greatly affects the cost of billing services. Larger practices can often lower the cost per claim due to cost-saving advantages and better manage their finances.

As practices grow, their operational efficiency tends to improve, enabling them to manage larger volumes of claims without a proportional increase in overhead expenses.

This flexibility lets established practices work out better prices with billing service providers, giving them a cost management edge.

On the other hand, smaller practices may face challenges with higher billing costs because they have fewer resources, leading to less ability to change with new healthcare rules.

By examining how the size of a practice relates to billing costs, healthcare providers can make informed choices about running their operations and find ways to simplify tasks for better service.

2. Specialties and Services Offered

The different medical fields and the services your practice provides can make billing more complicated, affecting costs and needing special billing knowledge.

This challenge mainly comes from the specific rules for coding that healthcare professionals must follow to receive the correct payment.

Each specialty has distinct regulations and billing practices, which can lead to significant variations in costs between practices.

For instance, an orthopedic clinic might encounter differing codes and protocols compared to a cardiology practice, reflecting the level of detail required for coding procedures specific to each field.

These changes impact current billing and also make it hard for practices to estimate long-term costs while trying to offer clear pricing to their patients.

3. Volume of Claims

The volume of claims processed by your practice directly affects the cost of medical billing services, with higher volumes often leading to better pricing strategies.

When a healthcare provider handles a large amount of claims, they can agree on better prices with billing companies because handling more claims can lower costs.

This method saves money, makes claims more accurate, and reduces denials, which are essential for managing claims.

Consequently, tracking efficiency metrics such as claim turnaround time and denial rates becomes essential.

By concentrating on these metrics, practices can improve their billing methods, leading to healthier revenue cycles and maximizing their claims volume for the best financial results. For an extensive analysis of pricing strategies, our deep dive into Medical Billing Service Costs in 2025 examines current trends.

4. Geographic Location

Your geographic location can significantly impact the cost of medical billing services due to variations in healthcare costs and healthcare market trends.

For instance, urban areas often experience higher operational costs, which can lead to increased billing service fees compared to rural counterparts.

Regional market factors, like competition between service providers and local laws, change pricing structures. In areas with strong healthcare systems, companies might need more specialized billing services, which can increase expenses.

Conversely, in less populated areas, there may be fewer options, which can limit price competition. Recognizing these factors is important for healthcare providers as they handle budgeting and make strategic choices to improve service delivery while controlling costs effectively.

5. Level of Customization

The level of customization required from your medical billing service impacts costs, as more personalized services often increase expenses and may require specific billing methods.

This is primarily because customized billing systems, including CPT codes management, often need additional time and resources to implement, which can drive up overall expenses. Clients looking for particular features or distinct user experiences might need to invest more due to the increased complexity.

Service differentiation is important; providers who offer unique advice, such as billing consultation, and help improve the user experience can charge more by demonstrating their unique value.

Knowing what affects these costs can help practices make choices that fit their budgets while still providing good service.

What Are the Expected Costs for Medical Billing Services?

Predicting upcoming costs for medical billing involves learning about new trends such as improvements in healthcare technology, changes in healthcare rules, and the shift towards value-based care.

As the healthcare field evolves, practices need to adjust accordingly, especially when outsourcing billing to improve efficiency and cut costs, including grasping the effects of health insurance. Related insight: Medical Billing Service Costs in 2025

1. Advancements in Technology

New healthcare technology will simplify medical billing, making it more user-friendly and helping reduce costs.

This change is mostly due to new ideas like billing automation and insurance reimbursements management, which make different tasks easier, cut down on mistakes, and save time on repeated work.

Better software connections allow healthcare providers to easily communicate with billing systems, which improves agreements and results in more accurate billing and claims handling.

With the implementation of artificial intelligence, healthcare facilities can anticipate and address billing issues proactively, including risk management, leading to improved cash flow and reduced administrative burdens.

These changes improve the user experience for providers and patients and make the billing process clearer, building trust and satisfaction in healthcare through effective communication.

2. Changes in Healthcare Policies

Updates in healthcare rules, including ICD-10 transitions, can greatly affect medical billing expenses because new guidelines and compliance requirements can change how billing works.

Healthcare providers must manage a complicated network of agreements with payers that determine payment rates and methods, including Medicare billing guidelines, and these agreements can change when policies update. Adjusting to these changes is important because failing to do so might result in expensive fines or rejected claims.

Following regulations requires actively learning and applying them, which can be challenging for many organizations. The ability to manage billing services well, considering changing policies, can improve revenue cycles and keep patient care consistent and active.

3. Shift towards Value-Based Care

The move to value-based care, promoting service innovation, is changing how medical billing works, focusing on quality service rather than the number of services, which could change how payments are made.

This changing system alters payment processing and questions old billing methods by concentrating on patient results and satisfaction.

Therefore, reimbursement plans, including Medicaid billing considerations, need to change to evaluate the success of treatments instead of just counting the number of services provided. The implications for costs are significant, requiring healthcare organizations to invest in new technologies and training to meet these standards.

As forecasts show changes in healthcare services, such as healthcare analytics, providers should understand these trends. Knowing this helps them stay financially stable while offering excellent care.

4. Growing Demand for Outsourcing

More medical practices are turning to third-party billing companies for billing services to save money and make their operations more efficient, which helps increase profits.

This change shows that more businesses realize that specialized billing companies, which often handle detailed cost estimates, can make workflows run more smoothly and offer better pricing options than handling it internally.

By handing over these administrative tasks, healthcare providers can concentrate on patient care while gaining from the knowledge of billing professionals familiar with changing medical billing regulations.

Outsourcing can lead to reduced overhead costs, as practices no longer need to maintain a large billing department, allowing them to focus on growth strategies. This method typically results in more accurate outcomes, faster payouts, and improved financial performance.

5. Potential for Cost Savings

Practices that strategically implement medical billing services can realize significant cost savings, contributing to their overall financial sustainability through cost-saving strategies.

By regularly checking billing records, organizations can find mistakes and problems in their billing processes, enhancing healthcare administration efficiency. This corrects mistakes and makes claims submissions more accurate and faster.

This active method helps healthcare providers increase reimbursements, which results in better cash flow and effective risk management.

Using healthcare technology and improving the way work is done can greatly improve billing efficiency, enhancing service innovation.

These improvements make the financial system more sustainable, allowing organizations to use resources wisely and invest in areas that improve patient care and business growth, including managing copayments and deductibles.

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