Much Does a Medical Billing Service Cost in 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

 

 

 

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.

Keep reading to get a better understanding of your pricing options and how you can find the best bargain to outsource your bookkeeping.

Buyer’s Guide to Medical Billing Service Companies

Medical billing services are essential for healthcare providers, helping them manage claims, payments, and revenue cycles efficiently. In this guide, we’ll answer common questions about medical billing systems, pricing structures, and how to choose the best service while avoiding unnecessary fees.

What Are the Most Popular Types of Medical Billing Systems?

Medical billing systems fall into three main categories, each tailored to different needs:

1. In-House Medical Billing Systems
   • Description: These systems are managed directly by a healthcare provider’s staff.
   • Pros: Full control over billing processes and data security.
   • Cons: High initial setup costs, ongoing maintenance, and the need for trained staff.
2. Outsourced Medical Billing Services
   • Description: Healthcare providers delegate billing to a third-party company.
   • Pros: Cost-effective, reduces administrative burden, and improves claim accuracy.
   • Cons: Less direct control over the process.
3. Cloud-Based Medical Billing Software
   • Description: A hybrid solution where providers use cloud-based software for billing and documentation.
   • Pros: Accessible from anywhere, regular updates, and scalable for different practice sizes.
   • Cons: Subscription costs and potential reliance on internet connectivity.

How Do Medical Billers Charge?

Medical billing companies use several pricing models. Understanding these can help you find the most cost-effective option:

1. Percentage of Collections
   • Medical billers charge a percentage (typically 4-10%) of the payments collected from insurance companies and patients.
   • Best For: Small to mid-sized practices with variable revenue streams.
2. Flat Fee Per Claim
   • A fixed fee is charged for each claim processed, ranging from $1 to $15 per claim.
   • Best For: Practices with high claim volumes and predictable billing needs.
3. Hourly Rates
   • Some providers charge an hourly fee for their services, which can range from $25 to $150 per hour.
   • Best For: Short-term or specific projects, such as auditing.
4. Monthly Subscription
   • A set monthly fee for access to software and support services.
   • Best For: Practices that use cloud-based billing systems.

What Exactly Do Medical Billing Providers Do?

Medical billing providers handle various aspects of the revenue cycle, ensuring healthcare providers get paid promptly and accurately. Services typically include:

• Claim Preparation and Submission: Entering patient information, coding diagnoses, and submitting claims to insurance companies.
• Insurance Verification: Confirming patient coverage and benefits before treatment.
• Payment Posting: Recording payments from insurers and patients.
• Denial Management: Addressing rejected claims and resubmitting them with necessary corrections.
• Reporting and Analytics: Providing insights into billing trends, outstanding claims, and financial performance.
• Patient Billing Support: Generating statements, handling inquiries, and managing payment plans.

Key Responsibilities of Medical Billing Service Providers

Not all fees charged by medical billing companies are transparent or justified. Be on the lookout for these red flags:

1. Hidden Setup Fees
   • Some companies charge exorbitant onboarding fees without clear justification. Request a detailed breakdown before committing.
2. Excessive Minimum Monthly Charges
   • Ensure the minimum monthly fees align with your practice’s billing volume. Avoid companies with high minimums if you’re a smaller practice.
3. Termination Fees
   • Avoid contracts with steep penalties for ending the service. Look for companies offering flexible, month-to-month agreements.
4. Unnecessary Add-Ons
   • Some providers bundle additional services or software features you may not need. Review contracts carefully to avoid paying for unnecessary extras.

5. Hidden Fees to Watch for in Medical Billing Services

   • Ensure customer support is included in the base fee. Some companies charge extra for basic troubleshooting or training.

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Video Presentation on Medical Billing Services

Choosing the Right Medical Billing Service Provider

• Assess Your Needs: Determine whether you need in-house, outsourced, or cloud-based billing.
• Compare Pricing Models: Choose a structure that aligns with your practice size and revenue.
• Check Reputation: Read reviews and request references from similar healthcare practices.
• Request Transparency: Ensure all fees and terms are clearly outlined in the contract.
• Evaluate Scalability: Select a provider capable of growing with your practice.

Selecting the right medical billing service can streamline your operations and maximize revenue. By understanding billing systems, pricing structures, and potential fees, you’ll be better equipped to choose a provider that fits your needs and budget while avoiding unnecessary costs.

Sample Costs for Medical Billing Services

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 the 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 $260 to $1,0300.
• Emperia Medical Billing is generally 4% of all collected revenue.

Get Matched with Medical Billing Service Companies – Compare Up to Five Cost-Saving Quotes

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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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