The world of healthcare is complex and far-reaching, and managing the financial end of any practice can be a challenge. One of the most common questions that healthcare providers often ask is: “How much do medical billing companies charge?” At AMS Solutions, we believe in peak transparency, so we’re here to talk about that very subject. We’re going to take an in-depth look at the costs involved with partnering with a medical billing company.
The Cost Variation
The first thing that is critical to understand is that not all companies charge the same rates, or even similar rates in many cases. Not only that, but some don’t even have the same pricing structure, so one company might charge or bill you in a completely different way for their time or services than another. Other factors should be considered when looking at the variance between what one company charges and what other charges.
One of the most common pricing structures for medical billing companies is the percentage-based structure. This means that when they need to figure out how much to charge for billing services, they simply look at the gross revenue for the practice, and charge a percentage of that. In most cases, percentage-based medical billing services will charge between 3% and 7% of the practice’s gross revenue.
This model makes it easy for the billing company to align its interests with those of your practice. But it also leads back to the question: how much do medical billing companies charge in real terms? For example, let’s say your practice generates roughly $720,000 each month in revenue, and your medical billing service charges 5% of the gross revenue. You’ll be paying about $36,000 in billing service costs each month.
While less common, many medical billing services operate on the flat-fee model. AMS Solutions offers some flat-fee service plans, which can offer a far more predictable, fixed monthly cost for your practice. This is often a far more cost-effective solution, particularly with small and mid-sized practices, since it doesn’t fluctuate with the monthly revenue levels. This gives more stability and consistency to practices that need them the most.
How Much to Charge for Billing Services?
Another question that frequently pops up is how billing service providers determine how much to charge for billing services. The answer to this can vary quite a bit, depending on factors like the total number of patients in a billing cycle, the complexity of the billing process, and the level of administrative support that’s needed to complement the billing. In most cases, billing service providers will charge anywhere between $1 and $10 per claim handled, with most averaging right in the middle of that range.
Why Choose AMS Solutions?
With the constantly shifting healthcare landscape, and the often changing demands of small to midsize healthcare provider practices, choosing AMS can be one of the smartest moves you can make for your organization. We provide comprehensive coding and billing expertise which means you can focus on what matters for your practice, providing top-tier attention and care for your patients. Our competitive pricing and exceptional service and client satisfaction level mean you’ll always be getting the best value for your billing with AMS.
Trust AMS With Cost-Effective Management of Your Medical Billing Needs
Understanding how much medical billing companies charge can be a relatively complex process. However, with the right information and a trusted billing partner like AMS Solutions, it doesn’t need to be overwhelming. Reach out to AMS Solutions today for more information, or to get started discussing your organization’s needs.