On average $125 billion is lost each year due to denial billing claims. These claims are wrongly coded or due dates are missed due to piles of billing work and the output is that physicians miss out on a large chunk of revenue. Many physicians rely on medical billing services to fight such problems. Others remain unsure if the increased revenue outweighs the medical billing company fees.
So, how much does a medical billing service cost? There are certain things that healthcare organizations need to consider in evaluating the cost. Medical billing service like AdvancedMD, Kareo, Medeye services, Billing Paradise, etc. offers some models for charging for services from their clients that are explained below:
In this model, the medical billers charge a certain percentage of the money they collect per month. The billing company gets paid only if the health care service gets paid. This is particularly good for those practitioners who have a high denial or unpaid claim ratio. The rates charged by companies could range from 3% to 15% depending on the number of records of patients, type of cases, and the total amount receivables.
2.Fixed-rate per claim
The rate is charged on the number of claims and not on the amount collected. This normally when the claims are clean claims or practice does not want a full-service solution. The rate could be anywhere ranging from 50 cents to 12 dollars per claim, depending on the complexity and the average amount per claim.
3.Hourly rate basis
This method is reasonable for large scale practice and hospitals. Generally, billing companies often hire staff that is dedicated to a single client. The hourly rates vary from client to client. It is calculated during negotiations based on historic data and future predictions.
This model applies for chains of hospitals or services where the various sub-units are of different sizes and with different kinds of operations and services provided. So a single organization may have negotiated a mixed model of pricing for different requirements.
We know that caring for a patient’s health is a top priority, but multiple other items are important enough. Keeping on top of your billing process is the key to keep the profit growing and cash flow. Medical billing involves submitting claims to health insurance companies for the care you have provided to patients.
Insurance payments are key to maintaining a financially practical medical practice. So it plays a very important part of the revenue cycle of any healthcare organization. A medical billing service like Medeye services files insurance claims on time with proper accurate coding. It follows all the submission rules that the insurer has, this increases the chances of receiving timely payment, giving you cash flow required for the operation of health care service.
The medical billing service often handles the billing process with patients. After the insurance company pays its portion of the bill, the billing service takes care of the remaining balance that needs to be paid by patients.
One of the best medical billing service provider such as Medeye services also helps you avoid making a mistake in insurance claims and bill submission that could force you to penalise revenue because of poor recordkeeping. To handle such an issue that might cost you a lot, it’s always better that you depend on these reliable and affordable medical service providers.