Medical billing software is a necessity for any healthcare professional. Medical billing software helps you enter and track your medical data, which can be time-consuming without the help of computerized systems. 

It also provides an efficient way to communicate with insurance companies and patients so that everyone involved in the patient’s care knows how much has been billed for services rendered.

On Average, medical billing software costs $300 per month.  The common starting price is $25 per user/month. Premium plans can cost up to $200-500/mo., including setup fees and other miscellaneous costs not included in the monthly service fee itself. Additional fees can add on an extra $1000 all the way up to $20,000 a year.

Types of billing software

The most common medical billings systems include EHR (electronic health records) Systems, Practice Management Software or PMS, Practice Management systems or PMS, and Electronic Medical Records Software or EMR.

What type of system fits your needs

EHR System

Healthcare professionals use EHR Systems to collect and store patient data, such as demographics, insurance information, allergies, and past medical treatments. The system can then access this data when needed during treatment or billing procedures. Most medical billing software systems offer an EHR system option that works with their PMS or EMR system.

Most practice management software offers both pre-recorded patient care plans and order sets. This means you do not need to spend time creating your own standard operating procedures, which can help you save hours every day in your healthcare facility. Patient Care Plans are usually designed based on the facility you work in, such as urgent care centers or hospitals.

PMS System

PMS systems can be an excellent choice if you do not need to track patient records and simply want a system that automates your billing process. Many of these software options are cloud-based; however, some may require a server to be installed on-premise, increasing the associated costs. The advantage of PMS software is that it can reduce phone calls and decrease the amount of time spent on billing tasks.

EMR System

EMR Systems are often used in conjunction with a PMS system. Costs will vary depending on how much you want to customize it for your needs; however, most EMR systems cost more than PMS systems. It is essential to understand that an EMR system can be used without any other medical billing software options.

What is the cost?

Medical billing software can be costly in different ways. You have to purchase the software, and then you’re charged a monthly fee for it to work. Some companies offer discounts for every year that your company subscribes to their service. Others provide a discounted price if you sign up for an annual membership agreement with them.

However, some medical billing software providers may require that you pay upfront costs for their services rather than monthly fees, so make sure you understand what deals are available before signing on the dotted line.

The cost of medical billing software is one consideration when choosing a service provider. Still, other considerations should also be taken into accounts, such as customer reviews, customer service response times, and customer service reps. These additional factors can also contribute to how quickly you see a return on investment (ROI) from your software subscription.

Medical Billing Software Company Cost Comparison

Understanding the cost

Customers must understand the cost of buying and using a medical billing service to decide which is best for their business needs and budget.

Medical billing could cost you as much as $20,000 per year based on the service level that you need.

For example, a small medical billing company could spend as little as $3,000 per year for their basic software subscription and pay an additional fee if they have to contact customer support because of problems with their software. 

In contrast, a more extensive medical billing company could spend up to $20,000 per year for their software but get a much more robust service as part of that cost.

Annual Fees

Annual fees to maintain your software typically range from $1,000 – $2,500, which also depends on the features and functionality needed by your company. But it doesn’t stop there because you’ll have to purchase a computer server or rent one each year as well.

Medical billing software providers also offer cost savings for paying a premium annual membership fee, with discounts of up to 20% off the list price. 

Sometimes those discounts don’t start until the second or third year you use their service, which means it may take longer to get your money back from those costs. 

In addition, you need to be careful about those prices increasing each year as the software provider adds new features and services.

For example, one medical billing service provider charges $2,000 per month for their software, with four support tickets allowed each month. 

After three years of membership service agreements, that company raised the price by 15%, so now, instead of paying $2,000 per month, you’ll be charged $2,400 per month for the same service.

When paying in advance, some medical billing software providers charge a fee to cover their costs of maintaining servers and equipment, which could add up to $100-$200 per month to your bill.

Getting a Custom Plan

Customers who need more complex features or wish to integrate their technology with external apps and systems can spend more than $20,000 per year on a medical billing service. 

For example, suppose you need additional features such as electronic health records (EHR), patient portal, e-claims submission, or other services that are not included in your base price. In that case, you’ll pay extra for those services.

Many medical billing software companies offer discounts when you buy additional years of service instead of monthly fees. Still, typically those discount rates are not as aggressive as the ones offered by yearly memberships. Increases in annual fees may be higher than they typically would be if you were paying monthly fees to maintain your subscription.

For example, one company charges $1,000 per month for their medical billing software with four support tickets. If you need to contact customer service more than four times in a year, you’ll be charged an additional $50 each time. 

However, if you pay for an annual membership upfront, that fee is waived, and the monthly price is reduced to $900 per month.

Although prices vary widely among medical billing providers, be sure to do your homework before you select one. 

Finally, it is important to understand that costs can vary significantly for companies with different types of technology needs and usage levels.

Extra fees you should think about

One of the fee types you should think about is a monthly maintenance fee. This fee includes things like updates, integration, and customized reports.

Per-User Costs

A per-user monthly fee is also something to think about when it comes to medical bill processing costs. This fee includes access to all available software modules and attachments for a specified period. 

These types of fees are assessed monthly for every additional user that is added to the account. All other costs should be taken into consideration, like software licensing and deployment.

One-time fees

A one-time fee is another type of cost you may incur when you are leasing medical billing software. This cost includes the installation and setup costs for a specified period, roughly three years. 

One-time fees also include third-party applications and training as needed to get your staff acquainted with the software.

Audit and compliance fees

Another fee you need to think about is an audit and compliance cost. Your vendor assesses this type of fee if they have a customer that needs additional activity or review assistance. 

It includes any activity outside of normal operations, like audits for insurance companies requiring coverage documentation or appeals to challenge denials from payers.

Average cost per user

In 2021, the average price for medical billing software is $120 per month per user of the software, with fees going up depending on how many users need to have access. 

The average life expectancy of a medical billing system is about four years or 96 months. 

Therefore, over five years, you can expect your cost for a software solution to be around $5,760 or $1,152 per year.

Factors Affecting the Cost of Medical Billing Software

On average medical billing software solutions are priced anywhere between $0 and $800 per provider per month. The pricing often depends on the software feature capabilities and the licensing model used by your preferred vendor. Whether you opt for an on-site or hosted medical billing solution, you will invite hardware cots to implement it.

For instance, a computer server will cost you between $3,500 and $5,000 while on-site servers come at around $500 each. You should expect to spend about $50 to $250 for Ethernet switches and required cables. In addition to this, you also need to factor in software cost in order to figure out the overall cost of implementing medical billing software.

In this regard, here are some of the key factors that influence the cost of medical billing software:

Licensing Fee

While some vendors offer their medical billing software solutions for free, most of the leading providers will charge you a licensing fee. The amount you end up spending for software licensing will depend on many factors, such as the licensing fee model used by the provider and the number of users.

On average, a medical billing software license will cost you between $1,500 and $3,500 per user. The basic version of the software, featuring basic capabilities, cones at a licensing fee of about $1,300. Such a program often comes with a single-user interface.

Should you decide to add a few add-ons for additional functionality and or users, you should be prepared to incur additional costs. In most cases, the basic version will come with such capabilities as claim sending, as well as patient and medical office management.

Model of Deployment

The price of medical billing software programs often depends on their deployment model. On-premise systems will require upfront costs for licenses, servers, and several other hardware components. This mode of deployment will also require you to spend a considerable amount of setup and training.

Buyers of the leading on-premise systems will also be required to pay ongoing maintenance and support fees. In most cases, these will constitute between 15 and 20 percent of the upfront medical billing software licensing costs.

Although this option is associated with higher costs, the advantage of the client-server configuration is that it allows many users to share the same database. The cost will vary depending on the number of users and included software features. On average, this type of insurance billing software can range in price from just under $1,000 to $10,000.

Hosted Software as a Service (SaaS) Pricing Model

No service provider is required and service is accessed through an online browser. It is also sometimes referred to as Software-as-a-Service (SaaS), on-demand, cloud computing, Internet-based, and application service provider (ASP).

There are a few minute differences, but all are part of this popular, lower-cost medical billing software option. On average, prices range between $25 and $100 per month. In addition to this, you may also be required to pay additional electronic claim fees.

Software-as-a-Service (SaaS) applications typically require lower upfront costs and ongoing monthly fees that cover licensing, support, and upgrades. Finally, there are free medical billing software options that are supported by alternative revenue streams, including advertising.

Add-Ons and Upgrades

As mentioned above, the licensing fee is often for basic medical billing features and capabilities and will limit you to a single computer. Most of the leading providers will also allow you to expand the functionality of your software. However, these will come at additional costs.

For instance, some providers allow you to couple the billing software with such add-ons as scheduling capabilities. Again, the cost of add-ons and upgrades varies from one provider to another based on the capabilities it offers. For instance, basic add-ons with a single-user interface may be priced at $500.

Add-ons and medical billing software upgrades to support two-user interface capabilities are priced at about $1,100. The overall cost of the upgrades will also depend on the added features and capabilities. The more add-ons you integrate with your billing software, the higher the cost will be.

Conclusion

As you can see, many medical billing software companies offer different features and price points. They each specialize in specific niches like dental or chiropractic care.

It’s essential to do your research, so you get the best bang for your buck! If this article was helpful, please share it with others who might be looking into getting started in the healthcare industry. You may be interested in medical transcription.