What Are The Average Medical Billing Service Charges?
Medical billing service charges are the physicians' revenue that they generate with the help of the repayments of the medical bills. This is why every medical practice pays special attention to ensuring that their administration of finances is efficient and effective. They also place a high value on their process of medical billing, overall revenue cycle management, and account receivables.
The profession of medical billing is a very specialized one that requires competent employees to manage the time-consuming and complex tasks that ensure your practice's financial investment and managerial abilities. That is why numerous medical practices outsource medical billing and medical transcription services from a medical billing company.
What Are The Average Medical Billing Service Fees?
The charges of medical billing companies may vary depending upon the requirements of the medical practices, but a rough estimate lies somewhere between $870 to $10,000 a month. The fees for these services highly depend on the organization's size, requirements, and workload. Medical billing companies like UControl Billing provide the best medical and dermatology medical billing services at the most affordable price. Again their prices also vary and depend upon the needs and requirements of the medical practices.
Also, before choosing a medical billing practice for outsourcing endocrinology medical billing depending upon their fee and charges, ensure that you also look for the following factors:
- How is their reputation?
- What is their expertise?
- What solutions do they provide?
- What is the percentage of error in their billing claims?
You can find out the answers to the questions mentioned above by researching online or by consulting your colleagues and the support system of different medical billing vendors.
To know about the charges of medical billing services, the best way is to get medical billing quotes by contacting different medical billing companies. Also, note that while asking for medical billing quotes, ensure that you request the billing rates depending on the specialty to get a very straightforward understanding of the rates. Many medical practices usually overlook the fact that the specialty that requires medical billing services may require additional efforts of the medical billers and medical coders, which is why they may charge a little extra for it. Ensure that you sign the medical billing services agreement only after understanding all the terms.
How Do Medical Billing Companies Charge For Services?
It is no secret that the fees and percentages of medical billing services vary as medical billing companies and other service providers charge differently based on the type of medical practice that they have to deal with. The reason behind it is simple as different medical specialties require different times and have different levels of complexity. For instance, let us take an example of neurology practice. A neurologist might see a small number of patients daily.
Still, the medical coding process of such a specialty is very complex, and issued claims are usually in four or five figures. A medical billing service provider may charge more for this complex and demanding work. On the other hand, let's say there is a family practice, and the physicians there might see a higher number of patients daily. But as the process of medical coding for such practices is easy and very basic, the issues claims are in a very small amount. This is why a medical billing company might charge less for the medical billing services of such a practice.
Methods Of Setting Medical Billing Services Fees
Most medical billing companies set their medical billing services charges using one of these three ways:
- Medical billing fees by percentage
- Medical billing fees Per claim
- Medical billing fees Per hour
It should be noted that a good medical billing company always stays transparent regarding the method they choose to charge. They may spell it out in person or inform you via an agreement that the client has to sign to get their medical billing services. Now, let us explain the three methods that most medical billing companies use:
Medical billing fees by percentage
In a percentage-based billing method, the medical billing service providers might charge their customers a percentage that depends on the revenue that a medical practice generates every month. As we have mentioned before, this sort of billing method also varies according to the services that the medical facility provides, the number of patients they cater to, and the site of the facility sometimes matters. Usually, most medical billing companies charge around 5 to 7 percent, and the percentage can also range from 3 to 10.
Medical billing fees per claim
The Per Claim Fees is the most convenient billing method. The medical billing service providers will only charge their clients per insurance claim filed in this sort of billing, and they charge each claim for usually a few dollars. This billing method is suitable for the medical practices that only submit claims and do not have the facility of in-house medical billing staff to handle claims.
Medical billing fees per hour
The most suitable method for charging smaller healthcare facilities for medical billing services is the per-hour fees. This is because these sorts of facilities usually do not cater to many patient visits. Also, they usually do not earn that much that they could go with the percentage rate or per-claim fee to justify this service.
How To Decide The Medical Services Fee?
Deciding upon the medical services charges can be very straightforward. To decide, just get the price quotations from various medical billing service providers, evaluate and compare them, look at their experience in the field and just reach a medical billing services contract. There is another option for you, and that is outsourcing from a medical billing company. Before going to the second option, calculate how much it costs your organization to handle the bills. If it is somewhat similar to what the medical billing company charges, then outsource it. Most medical billing companies do cover the following aspects:
- Monthly reports
- Posting insurance
- Patient payments
- Medical coding
- Claims scrubbing
- Claims submission
- Denial management
- Payment follow-ups
- Payment appeals
- Patient eligibility
- Benefit verification
- Clearinghouse management
- Entering patient demographics
Medical billing companies also provide medical credentialing services, front office management, and medical transcription services.
Look Out For The Red Flags!
While outsourcing, do look for the red flags as some fess are just bad news. This fee is just an add-on that does not have any value to your medical provider's clients. Here are the fees that indicate red flags:
- Hidden costs
- Hardware fees
- Installation charges
- Upgrade expenses
- Clearinghouse Fees
- Post-sale customer support fees
- Costs for each statement mailed to a patient
Let us wrap it up!
The best way is to outsource medical billing as it is beneficial in numerous ways. A good medical billing company will cater to you with numerous services, like entering correct clinical data and using updated ICD/CPT codes. They do cost a little, but most medical billing companies are affordable. In time you will surely observe that the medical company will handle all the heavy billing tasks, and this will allow your staff to provide better care to the patients as outsourcing saves up time and money for the medical practices so they can focus more on what is important to grow and reach the new heights of success. Also, there will be fewer errors and mistakes in the claims submissions as medical billing companies, like UControl Billing, have a staff that includes proficient medical billers and coders. To know more about them, click on the attached link!