Compare Medical Billing Service Prices – Calculate The Cost in 2020
Compare Examples of Outsourced Medical Billing Service Prices
Medical billing services can cost from $870 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 $25 to $125 per month. Here’s your medical service buyers guide for 2020.
We have reviewed some of the top medical billing services to help you see how the prices differ from one company to the next.
ADP AdvanceMD
We are going to start with a plan that is from one of the most well-known accounting and payroll companies out there. This service offers full integration and automation into your current system.
Their services work best for companies that are small to medium sized. There are two ways to determine your pricing, either with their “build a bundle” feature or with one of their preconfigured plans.
Your best option is to build a custom bundle to ensure you get the most amount of savings. But with their preconfigured plan you can expect a 4-8% practice collections rate.
Practice Management Software
Their most popular billing bundle is $429 per month per provider. It will give you unlimited encounters and is ideal for those with a high patient volume.
Another option is a per encounter billing system at a rate of $1.42. This usually equals out to about $150 per month per provider.
This plan is ideal for those with low patient volume. Usually, practices that are chiropractic, physical therapy, and behavioral health will select this method.
EMR/EHR Software
These plans also have an option of unlimited and per encounter billing methods. An unlimited plan can be around $729 per month per provider. This sounds expensive but will give you a great amount of savings since PM and EHR are unified.
You’ll get unlimited encounters which makes it ideal for those with high patient volume.
When it comes to getting charged per encounter it is at a rate of around $2.18. This method is also ideal for those with a low patient volume.
NueMD
This is one of the easiest to use, cloud-based, billing system. They will provide you with detailed reports on revenue trends, aging accounts, and payment statuses.
One of the best features about NueMD is that you can try out the service with a free trial. Then they offer a range of plans to fit your needs.
Practice Solution
The practical solution is $149 dollars per month. The service will then handle your patient records, scheduling, tickets, claims, and eligibility verification.
ERA, batch claims, and reporting are also included in the service.
Total Solution
The total solution starts at $199 per month. This plan includes all practice solution features. You’ll also get advanced analysis and electronic chart management.
This solution also includes inventory management and standard collection services.
Ultimate Solution
The Ultimate Solution is $249 per month. With this solution, you will get all of the features included with the total solution option.
Instead of the standard collection service though you’ll get the premium collections service. You will also get capitation service.
Electronic Health Record & Medical Billing System
If these plans don’t work for your needs then look into the electronic health records and medical billing system. Pricing for this service is done by quote.
MTBC PracticePro
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.
Kareo
If you want a cloud-based system, Kareo has many different plans that can address your billing needs and other practice management needs. These office tasks include patient registration, billing, medication, and patient management.
Kareo Marketing
If you are looking for more than just billing services, this plan will also include marketing type services. This includes things like patient feedback, online reputation management, and other patient communication.
For the billing portion, you’ll have dedicated support from Kareo, billing, and managed billing. This plan will cost your practice $300 per month, per provider.
Kareo Billing
This plan is only billing for those looking for a focused solution. It offers billing and practice management. It can also be programmed to send automatic reminders and alerts.
You can process your patient’s credit card payments. Then manage everything from a customizable dashboard. You can even get full analytics and reporting.
You will also have a dedicated support team.
Kareo Managed Billing
This plan is customized to fit your exact needs, so you’ll need to get a quote for pricing. With this plan, you’ll have fee management, scheduling, and performance management.
You’ll have a dedicated support member from Kareo. There is also data import and export capabilities.
Medical Billing Star
This is another service that will let you try them out with a 7-day free trial before you commit. They pride themselves on having completely transparent and easy to understand billing structures for their plans. There are three different billing solutions that you can choose from.
Billing Service
The first being a billing service. You will be charged at a rate of 4.99% for a team of 7 specialists. Be aware that there is a 5% increase for collections. You will also get certified billers and free EMR support.
They boast that you won’t have a monthly minimum and that your outstanding AR will have a reduction of 97%.
Billing & Coding
If you need a more robust service you can sign up for the billing and coding service. You will pay a rate of 6.99%.
With this plan, you’ll reduce your backlogged revenue, improve your coding accuracy, and have 24.7 support.
Coding
While this plan doesn’t include billing, you can have Medical Billing Star do just the coding for your practice. You’ll pay a rate of $0.99.
All of the coders are AAPC certified. You will have access to coding audits, scrubbing tools, and a centralized coding process.
GroupOne
GroupOne offers a wide range of solutions for your practice to ensure you have the right solutions without paying for things you don’t need.
Subscriptions
There are two subscription plans that are $550 and $599. Each one gives you support for your bundled services of practice management and EHR.
These plans are the best bargain for those practices that have 1 to 3 providers. They offer cost savings for a long-term EHR solution.
Buy Your License
You can then purchase your license for $10,000. Then each additional license is $5,000. This lets you own their eClinicalWorks EHR system and have a local server.
If you need your billing solution to be scalable, then this is your best option. It is a large investment up front, but ultimately, will be your best pricing. Plus there is the option of cloud hosting or local server installation.
OneRate
This plan will charge you a percentage of your practice’s monthly net collections. The rate you end up paying could be anywhere from 3% to 7%.
Your plan will include professional RCM services. You will also get free use of eClinicalWorks EHR and their practice management services.
This solution is best for those practices who need to reduce the potential for cash flow interruption that occurs when switching to a new EHR.
Checking out medical billing service prices? We’ll help you calculate the cost so you can be ready for 2020, plus some tips on how to choose the right provider.
Did you know that by 2024, $1 of every $5 spent will be on healthcare? That’s a lot of money, and in turn, a lot of billing.
Right now, more than 51% of patients owe their doctors more than $1,000. How is your practice managing your billing? Considering getting a billing service? Maybe you’re unhappy with your current service.
Medical billing service prices can vary greatly depending on how robust of services you need and the type of fees setup you choose.
Keep reading to get a better understanding of your pricing options and how you can find the best bargain to outsource your bookkeeping.
How Much Do Medical Billing Service Cost in 2020?
There are three common ways that you will see the fees for your billing service charged. There is the fee per claim method, the percentage, and the hybrid.
Fee Per Claim
The first method is a fixed rate that gets charged for each claim that gets processed. This means that it doesn’t matter if the billing service processes a $50 claim or a $500 claim.
This pricing for medical billing services works very similarly to the phone answering services you have probably considered for your practice.
The potential problem with this structure is that the lower the fee, the less likely the service is to follow up. Usually, you can expect more and more follow up as the service fee goes up.
Often fee per claim pricing lacks a certain amount of incentive for the service.
Percent
There are three different methods medical billing services will use to charge a percentage of the client’s collections. You will need to look at the different methods and compare the potential costs of each.
First
The first method for fees would be to charge for a percentage of the net payments collected. This is great because it means that the service only gets paid based on the total amount you get paid.
There is a level of accountability and incentive built into the agreement.
Second
The second option is to get billed based on the gross number of claims submitted. This can mean enticing percentages in fees for you. but it also removes the incentive for the service to aggressively collect on those fees you are owed.
Third
The third method will hand over all collections actions to the billing service. This will mean that they will handle everything including deductibles, co-pays, and any denied claims.
This is the most common method used for practices that use comprehensive management agreements.
Hybrid
The third most common method for billing fees is to do a hybrid of both. This means that some submissions will get handled by charging a flat fee. While others will get charged by percentage.
This method of billing arose because some insurance companies began to reject the percentage based billing. The hybrid method was used to keep clients from getting dropped by the insurance carrier.
There is also the fact that some states have deemed the percentage based billing as illegal.
Fees to Avoid When Outsourcing Medical Billing Service?
We’ve discussed that medical billing services charge a certain percentage of the billing. But some services will charge you additional fees, and that can raise the initial rate.
Setup Fees
These are fees to set up your account or integrate their system into your systems. While you may not be able to avoid the setup fee, you should keep it in mind as a part of the overall cost.
A setup fee could range from $0 to up to $250.
Additional Software
You may find that your costs go up because the medical billing service is a part of a software suite. You will need to consider if this software suite will give your business added value for the additional costs.
The additional software could make your practice more turnkey. It will include things like a scheduler or an online payment management portal for patients.
These services can help you manage your practice and be more transparent to your patients. This is especially important since 75% of Americans don’t know they owe on services until they get the bill weeks later.
Let’s Help You Find the Right Medical Billing Service
When looking to outsource your billing, you need to decide what service you want to outsource vs keep in-house. This will help you determine what level of service you need.
Another thing to do is think about your budget. This may determine how comprehensive of a service you agree to.
Start by looking at the size of your practice and the number of patients you have. Also, consider how many providers.
Once you know this information, you’ll be able to start comparing medical billing service prices.
So let’s get started finding the right medical billing service for your needs.
If you plan to outsource medical billing, you want to make sure that you cover all the bases.
You worked hard to build a thriving practice. Your talented employees were most likely also a part of that success. No matter how talented you and your staff, however, you all have your limitations.
As your practice grows, you may find it challenging to keep up with your field’s changing demands. If so, you may want to consider outsourcing medical billing.
For your practice to continue to succeed, you must maintain its financial health. You can ease the strain on your practice and resources, improve efficiency, and save money by outsourcing medical insurance billing.
For the steps for outsourcing medical billing services and how much it should cost, read on.
1. Assessing Your Medical Billing Needs
You’ll need to figure out where you’re at before you can decide where you want to go. You may want to maintain control of some of the administrative aspects of your practice.
As an example, you might want to keep medical coding, and most of your customer service in-house. Conversely, you may want to lease medical billing software and hire a third-party for customer service.
In this case, you’ll need to figure out if volume-based escalation is enough to fit your needs. Alternatively, you may need customer service and billing specialists to cover shifts outside of the normal workday.
Depending on the size of your organization, you may make do with one dedicated account manager. Alternatively, you may need multiple leads for effective patient engagement. It’s important to consider your ideal business model before seeking out a service provider.
You may want to outsource medical billing services for a variety of reasons. For example, you may need to decrease errors and claims denials.
You may also want to reduce overhead costs. Alternatively, you might need to outsource to respond to a change in internal staffing.
Outsourcing can help you meet these needs. However, your chosen provider must understand your circumstances, motivations, and objectives. Before you can express these points, you must spend time on introspection.
2. Evaluating the Impact of Outsourcing
It’s important to consider how outsourcing will affect your patients. Most likely, your front desk staff will continue to engage patients. However, your administrative staff makes many decisions that affect the patient experience.
For instance, you might have back-office tasks related to managing write-offs and collections. You’ll need to think about the patient experience once you place these responsibilities in the hands of a third-party.
It’s essential that you prioritize your patients’ experience when making this decision. In some instances, it may make more sense to opt for medical billing tech if you have a close relationship with your patients.
You must also think about compliance and liability. Relatively new laws incentivize care providers through reimbursement.
For this reason, it’s essential to hire a medical billing company that can help you meet current requirements. It’s important to choose an agency that will help you remain in compliance with HIPAA and security regulations. Accordingly, it’s important to discuss these matters with a potential service provider before entering an agreement.
3. Assessing Potential Vendors
Once you’ve identified your objectives, you can start interviewing various service providers. For example, you’ll want to consider how fast they can take over administrative responsibilities.
Usually, this transition can take place in 30 to 60 days. However, the transition time frame will vary with service providers.
It helps if a medical billing company is familiar with your software. If so, this familiarity will ease the transition. If not, you need to consider what it will take to hand over responsibilities to a third-party.
In some cases, a third-party service may not use your current software. If so, whether you need to transfer data electronically or manually will greatly affect how long it will take to handover the ownership of responsibilities.
You’ll also need to consider the services that a potential billing company can provide. For example, revenue cycle management is a complex process. It involves a variety of important back-office tasks.
It’s important to identify each of these tasks. Next, you’ll need to assign clear accountability for that work to either the third-party company or your in-house staff.
The medical field is constantly evolving. Accordingly, you’ll also want to consider whether a medical billing company provides ongoing training for its staff members.
You’ll also want to outline who will handle your current outstanding accounts receivables. This transparency will reduce the chances that existing unpaid claims will go overlooked.
In some cases, it’s better to start fresh and let the new company take ownership of incoming claims. Meanwhile, your in-house staff can continue to wrap up existing claims.
The Cost of Outsourcing Medical Billing
The startup costs of hiring a medical billing service can range anywhere from $250 to $1,000. The final price will depend on your company’s size and the services you secure through the provider.
Also, you may pay an average of 8% for every collected debt. However, some companies may charge fees as low as 2% to 4% per collection. By weighing your needs with various services and rates, you can find the best medical billing service for your practice.
Start Your Search for a Great Practice Partner
Now you know more about outsourcing medical billing. Wouldn’t it be great if there were a single website where you could receive quotes from all the best local service providers? Fortunately, there’s just such a site.
Price It Here is a one-stop, win-win resource for service providers and clients. Here, you can fill out a short form and receive quotes from the best local service providers around.
At Price It Here, you’ll enjoy the benefits of submitting your needs to a highly competitive marketplace. With our site, you can find the best deals with a click of a button. Best of all, the entire service is free of charge.
Visit Price It Here today to start receiving the best quotes for medical billing and other business services.
Compare Service Offerings Of Medical Billing Companies
Not every billing service charging 5% of collections is the same.
Each offers a list of services but some are more comprehensive than others.
Before making a decision, compare their service offerings to find the best value. Some services to pay special attention to are…
- Hours of Operation – 24/7 service is the gold standard
- Speed of Insurance Transmission – faster submission equals faster payment
- Reimbursement Velocity – there’s a difference between 25 and 40 days
- EMR Software Integration – EMR’s are the future of patient information
- Provider Credentialing – grow the practice by increasing in-network carriers
The Wrap
A medical billing service not only takes hassles away. It helps providers and practices grow. It does this by increasing collections, reducing the billing lifecycle and building a larger network of carriers.
Medical Billing Service Sample Costs
Below are a few examples of price facts for Medical Billing Services which will give you an idea of how much you will pay for your purchase.
- 8% average cost by percentage of collected medical debt.
- Medeye services range between 2% to 4% on average.
- Most set-up fees are free but a few can cost as much as $250 to $1,000.
- Emperia Medical Billing is generally 4% of all collected revenue.
Get Matched up With Medical Billing Service Providers With Up To Five Money Saving Quotes
Article Sources:
https://www.beckershospitalreview.com/finance/11-key-statistics-about-the-healthcare-payment-market.html
https://healthcareinamerica.us/medical-billing-errors-are-seriously-hurting-healthcare-67d134441adc
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