How Much Does a Medical Billing Service Cost?
Read on to know how much medical billing costs if you want to outsource your medical billing to a medical billing service.
Each year about $125 billion is lost because of denied billing claims. Medical experts lose a large chunk of revenue when a claim is made with the wrong codes, or it is missed due dates for bills. Considering the number of unpaid patient bills because of short duration, loss of revenue increases.
This is the reason many medical care units outsource medical billing services to fight this issue. If you are one of those, who are unsure if the increased revenue outweighs the cost of a billing service. Let us explore how much a medical billing service costs these days.
Although medical billing costs depend on many variables, you can still estimate how much to expect for medical billing services.
Table of Contents
Medical billing process
The medical billing process starts when the patient visits the practice for the very first time. The practitioner then finds out what insurance will cover and what codes to use. In order to cover the costs, a bill goes to the patient. Using correct codes is very important to ensure payment. Determining the proper codes and keeping up with the insurance payments require a full-time staff. This staff follows up on any denied or rejected claims. In addition, it is also essential that all claims get filed on time. Then the team depends upon the patient in order to get the remaining bill.
Outsourced Medical Billing Services
Not every practice has an excess of staff who could follow up on these payments. For such practices outsourcing medical billing services is the best option. You can get the following benefits from a medical billing company:
- Medical coding
- Medical billing
- Follow-up with patients
- Follow-up on denied claims
- Advice on better filing processes
The cost of such services depends on the size and type of practice you run.
How Much Does a Medical Billing Service Cost?
In order to estimate the medical billing cost, one should consider the following:
- Set-up fees
- Administrative fees
- Billing fees
The prices can vary depending on the volume and types of claims and the size and scope of practice.
Set-Up Fees
Some medical billing service companies charge a start-up fee. They do so to cover the costs of taking on a new client. One can expect this cost to be around $300 per physician. For many physicians, medical billing companies will charge $1,000 per office.
Administrative Fees
Every medical billing company charges administrative fees. Administrative fees range from $3,000 to $6,000 and cover the costs of software upkeep, etcetera. This cost also depends on the size of your practice and the number of patients seen.
Billing Fees
After covering the set-up and administrative fees, it is time to determine the actual billing process costs. Depending on the size of your practice, this cost gets billed in several ways.
Why outsource medical billing?
In today’s demanding healthcare scenario, medical billing and claims can be arduous, challenging, and also expensive for a medical practice. This is why many physicians and practice managers outsource their medical billing services from medical billing companies. Outsourcing not only saves time and money but also decreases the stress associated with billing. Here are the advantages of outsourcing medical billing services:
Reduce medical billing errors
Outsourcing medical billing services brings experienced billers. These billers can submit claims accurately. Medical billing companies ensure that their staff is well-trained and knowledgeable. Thereby outsourcing reduces the number of denied and rejected claims. This implies that outsourcing medical billing services help in minimizing errors and maximizing repayment on claims.
More time for patients
Outsourcing medical billing services implies more time to focus on patient care. Physicians can provide better care to their patients if they are not bothered with the practice’s billing process.
More saving
Outsourcing medical billing services help you to save thousands of dollars. You can save money on:
- Salary of in-house staff
- Employee benefits
- Training
- Real estate
- Office supplies
- Furniture
- Equipment
- Software cost
Outsourcing medical billing costs less than in-house staff to provide the same service.
Improved compliance
Billing and claiming is not an easy task. The rules, protocols, and regulations of insurance companies change every day. By outsourcing from a medical billing company, following the new rules and regulations, and compliance with protocols becomes the billing company’s problem.
Better revenue cycle management
The professional staff of the medical billing company provides uninterrupted and timely repayments for your claims. On the other hand, the in-house staff lacks this ability. Outsourcing provides income from uninterrupted reimbursements, which is essential for good revenue cycle management of your practice.
Increased revenue
By outsourcing your medical billing, you can:
- Reduce overhead costs
- Timely submission of claims
- Full reimbursement
This implies that you will have an efficient and profitable practice. By outsourcing medical billing services, you, your staff, and your patients get many advantages.
Wrap Up!
Outsourcing from a professional medical billing company can be an asset to your practice. It will provide you some fundamental advantages to your practice. If you want to get medical billing services from experts at affordable prices, choose UControl Billing! To know more about the medical billing cost of Ucontrol Billing, click here!