23 Jul The Going Rate for Medical Billing Services
“What is the Going Rate for Medical Billing Services?”
Healthcare organizations that are shopping for outsourced medical billing understand the advantages of partnering with a medical billing company but questions start to arise around price: “what is the going rate for medical billing services?
The going rate for medical billing services is one of the first questions that comes up for physicians, practices, or healthcare organizations that are shopping for a medical billing company.
In today’s age of online shopping we’ve all gotten used to checking the exact price of almost anything in an instant. Less experienced shoppers can be in for a surprise that the going rate for medical billing services at the start of the process is necessarily “it depends.”
To move past “it depends” and generate a quote for medical billing services and any related add-on services, your healthcare organization will need to exchange some information with the medical billing company during the evaluation process. Details that will play an important role in generating a quote are:
- The volume of claims your healthcare organization submits on a monthly or annual basis
- Average charge amount, average monthly/annual collections, etc.
- The level of service and any optional add-ons that the healthcare organization wants from the billing company
- Think along the lines of Revenue Cycle Management, RCM + Coding, Credentialing, PM Software, and so forth
Without the above details, a medical billing company can only provide the generic answer that the going rate for medical billing services is generally “between 2% and 6% of collections but it depends on what kind of help you need.”
What Percentage a Medical Billing Company Charges
For Revenue Cycle Management (RCM services), a medical billing company like Medusind charge a fair market value percentage of collections. Other pricing structures are available but this is the most common arrangement.
That percent-of-collections rate is set based on claim volumes, average charge amounts, the level of service desired, and more.
Don’t be surprised if your healthcare organization is asked to engage in the process and deliver high-level detail on current billing metrics and how your revenue cycle is managed. Prior to the exchange of that information, medical billing services can only be quoted in generalities. The pricing is not a secret! Service expectations and volumes play an important role in generating a quote.
The going rate for medical billing services is probably less than you’d guess!
For first time billing service shoppers, sharing revenue cycle info like this may feel unnecessary or even intrusive. We frequently hear “why can’t you just give me a quote?” If only it were that easy! But, to generate a quote that delivers value and positions the partnership as a win-win, that information is necessary.
How to Get a Quote for Medical Billing Services
Initial discussions with a medical billing company will orbit around what aspects of your revenue cycle can be improved, what you’re trying to accomplish, and, of course, how much it will cost. To get a quote for medical billing services from a billing company be prepared to share details around your practice’s revenue cycle like claim volumes and amounts with the billing company. Your organization’s specialty (or specialties) and payer mix are also pertinent. With this information in-hand, a quote can be turned around quickly for the healthcare organization’s review.
Start the Process with a Medical Billing Company
Leading medical billing companies, like us, will gladly guide you through the process to obtaining a quote for billing services. The first step is letting us know that we can help! Please use the request button at the bottom of this page or click through to our Contact page and we’ll be in touch with you as soon as possible.