How do medical billing companies charge their clients?

Most billing companies charge a percentage of collections (typically 4–9%), a flat monthly rate, or per-claim fees. The model depends on practice size, specialty, and service level. Transparency and ROI are key when evaluating pricing.

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Answer reviewed by Ken Ahbar, Certified Medical Billing Expert – updated August 2025

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How do medical billing companies charge their clients?

medical billing companies generally use one of three pricing models: percentage-based, flat-rate, or per-claim. Percentage models are the most common—typically charging between 4% and 9% of collected revenue. This aligns incentives, since billing providers only get paid when the practice gets paid. Flat monthly fees are sometimes preferred by high-volume practices for predictability. Per-claim fees are less common now, as they don’t incentivize collections. Each pricing method may include different services—such as coding, denial management, eligibility checks, or analytics dashboards. Extra fees can apply for credentialing or reporting. In 2025, many companies offer hybrid or customizable pricing depending on specialty, claim complexity, and payer mix. Small practices may pay more per claim, while larger ones can negotiate lower rates. The key is to assess ROI—not just the cost. A low-cost provider who misses claims can cost more than a pricier, thorough service. Always request a detailed breakdown before signing a contract.

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Answer reviewed by Ken Ahbar, Certified Medical Billing Expert – updated August 2025