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What Is the Going Rate for Medical Billing Services in 2024?
Medical billing services are an essential component of the healthcare industry, supporting healthcare providers and ensuring they are adequately reimbursed for their services. In 2024, the going rate for medical billing services varies depending on several factors. This article will explore these factors and provide an overview of the going rate for medical billing services in 2024.
What are the factors affecting the going rate of medical billing services?
If you obtain quotes to outsource your medical billing services, you’ll notice quite noticeable differences in these quotes. Of course, it’s expected that not all billing companies will have a standard price, but it is worth learning about the factors that influence the going rate of medical billing services.
Several factors affect the going rate for medical billing services, and these include but are not limited to:
- Geographic location and size of the company
- The complexity of billing services rendered (medical billing or RCM)
- The volume of services rendered
- The experience and expertise of the medical billing company
- The level of technology and automation harnessed by the billing company
The medical billing outsourcing market is expected to experience an 11.56% growth until 2030. This growth will attract more companies to the market. This is another factor that will continue to influence the going rate of medical billing services in certain regions.
What Is the Going Rate for Medical Billing Services in 2024?
The going rate for medical billing services varies depending on the above factors. However, on average, the cost of medical billing services ranges from 4% to 10% of the total revenue generated by the healthcare provider. This percentage includes all costs associated with medical billing, including technology, staff, and overhead.
For instance, if a healthcare provider makes $1 million in revenue annually, the medical billing services could cost between $40,000 to $100,000 per year. However, these percentages are estimates and may not apply universally to all healthcare providers. It’s advisable for healthcare providers to explore multiple quotes from various medical billing companies to find the most suitable rate for their specific requirements.
Additionally, when assessing the cost of medical billing services, it’s crucial to consider the payment structure employed by the medical billing company. In the US, there are various payment structures, with fee-for-service and percentage-based being the most common.
Pricing Model Options of Medical Billing Companies in the US
Pricing Model Type
Description
Percentage based
Based on a percentage of the total collections received by the medical billing company on behalf of the practice. Typically, the percentage ranges from 5% to 10% but can vary.
Fee-for-service
Involves charging a fixed fee for the medical billing services provided. The fee may be charged on a per-claim basis or a monthly basis, and it can vary depending on the complexity of the services provided.
Hybrid Model
This model combines elements of both the percentage of collections and flat fee models. The medical billing company charges a flat fee for basic services, such as claim submission and follow-up, and a percentage of collections for more complex services, such as appeals and denials management.
Per Claim
Entails charging a fixed fee per claim submitted to insurance companies. The fee may vary depending on the complexity of the claim, such as the number of services provided or the type of insurance plan.
Hourly Rate
Centered around charging a fixed hourly rate for the medical billing services provided. The rate may vary depending on the level of expertise required and the complexity of the services provided.
- Fee-for-service:
- Percentage-based payment
In addition to the cost of medical billing services, healthcare providers should consider the benefits of outsourcing medical billing. Outsourcing medical billing can save healthcare providers time and money, eliminating the need to hire and train in-house staff. Additionally, outsourcing medical billing can improve the accuracy and efficiency of billing, resulting in fewer denials and faster payments.
The following section will break down these benefits even further.
With the current going rate of medical billing services, why should medical practices outsource medical billing services?
Outsourcing medical billing services has become increasingly common among healthcare providers and for a good reason. There are several benefits to outsourcing medical billing services, including:
1. Operational Cost Reduction
Outsourcing medical billing services can be more cost-effective than hiring and training in-house staff. The current labor market conditions in the US make it difficult for healthcare practices to source and retain reliable talent.
Medical billing companies have dedicated teams and advanced technology to streamline the billing process, resulting in fewer errors, faster reimbursements, and lower administrative costs.
2. Revenue improvement
Medical billing companies deeply understand the complex coding and documentation requirements of insurance companies and third-party payers. By ensuring that claims are accurately coded and documented, medical billing companies can help healthcare providers maximize their revenue and minimize denials.
Read More: Top 10 Denials in Medical Billing
3. Improved accuracy and efficiency
Medical billing companies have advanced technology and dedicated staff that can help healthcare providers streamline their billing processes and reduce errors. This can help healthcare providers save time and money while improving the accuracy and efficiency of their billing operations.
4. Access to expertise and transfer to skills.
Medical billing companies have staff with specialized expertise in medical billing and coding. Outsourcing medical billing services allows healthcare providers to access this expertise without investing in extensive training or hiring additional staff.
Find your latest coding guides here…
5. Increased focus on patient care
By outsourcing medical billing services, healthcare providers can focus on providing high-quality patient care rather than spending time and resources on administrative tasks. This can help improve patient satisfaction and outcomes while also increasing the efficiency and productivity of healthcare providers.
Medical billing companies can also introduce additional services that healthcare practices may not be aware of, such as remote patient monitoring and chronic care management services. These could lead to exposing other revenue streams as well as improving the patient experience.
6. Scalability
Medical billing companies can quickly scale their services up or down to meet the needs of healthcare providers. This can be particularly beneficial for healthcare providers who experience fluctuations in patient volume or have limited resources. With medical billing companies, medical practices can change the size of their billing teams on demand and without hiring or firing new personnel.
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Conclusion:
Neolytix has been providing stellar medical billing services to healthcare practices of all sizes nationwide for over 12 years. We guarantee improvement in our client’s revenue cycle, whether exclusively focused on medical billing and coding or the revenue cycle.
Schedule a FREE, no-obligation consultation with a Neolytix Medical Billing Expert. Learn more about the going rates for medical billing services, what fee structure would work best for your practice, and what benefits to expect.
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