In 2025, a small medical practice can expect to pay between 4% to 9% of monthly collections for outsourced medical billing services. Alternatively, some providers charge a flat fee per claim, typically ranging from $1.50 to $5.00, depending on volume and specialty. Monthly minimum fees may apply, especially for very small practices. Additional services—like patient billing, prior authorizations, or denial management—can increase the total cost. While lower-cost providers may appeal to tight budgets, pricing often reflects service quality, technology support, and claim resolution rates. Choosing a billing partner with a strong track record can improve reimbursements and cash flow, which offsets the initial investment. It’s also important to compare pricing models (percentage vs. per-claim) based on your practice’s size and billing volume. Getting multiple quotes tailored to your specialty and workflow ensures you find a solution that balances affordability with performance.
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Answer reviewed by Ken Ahbar, Certified Medical Billing Expert – updated July 2025
If you’re running a small practice in 2025 and considering outsourcing your medical billing, cost is naturally one of the first questions that comes to mind. So, what should you expect to pay? Most reputable billing services charge either a percentage of your monthly collections or a flat fee per claim. For small practices, the percentage model is the most common—and it typically ranges between 4% to 9% of collections. That means if you bring in $50,000 a month, your billing fees could fall somewhere between $2,000 and $4,500, depending on the complexity of your claims and the level of service provided. The alternative model is a per-claim charge, which usually ranges from $1.50 to $5.00 per submitted claim. This is sometimes preferred by practices with more predictable or lower claim volume, as it offers straightforward cost control. Keep in mind that some billing companies have monthly minimums or charge extra for additional services like patient invoicing, insurance follow-ups, denial resolution, or reporting dashboards. Pricing also varies based on your specialty. For example, a primary care office might have simpler billing needs compared to a mental health clinic, dermatology practice, or surgery center, which could involve complex coding or prior authorizations. Practices that see high patient turnover, multiple payers, or procedures requiring modifiers may face higher rates due to the increased work involved in claim management. It’s also worth noting that the cheapest service isn’t always the best value. Some lower-cost providers may submit claims but offer minimal support when denials come in or payments are delayed. On the flip side, a higher-priced provider might help you collect more by reducing rejections, automating re-submissions, and proactively managing your accounts receivable.
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Answer reviewed by Ken Ahbar, Certified Medical Billing Expert – updated July 2025