We completely understand that running a dental business can be very costly but you also have to consider overhead costs, administrative and how do dental billing companies charge and dental billing fees.
After all, you want to provide highest standard of dental care, patient care and preventative services at the most competitive price while maintaining patient happiness, insurance reimbursements and your financial stability.
In addition to answering queries like “How do dental billing companies charge for services?” this Enfinity Medical Billing guide covers the different pricing strategies, service agreements and fee schedules that influence average expenses for dental billing solutions.
Due to the fact that it is more economical and effective for dental practices, outsourcing dental billing is a calculated decision. According to an MGMA survey, in-house billing procedures cost 13.7% to recover a dollar but outsourced billing operations cost 5.4%. This covers the costs associated with filing claims, accurately coding and following up on payments.
Let’s get right to the point!
How Do Dental Billing Companies Charge for Outsourcing?
Dental offices that outsource their billing might anticipate receiving between 4% and 10% of their whole revenue. The number of claims filed, the size of the practice, the complexity of the billing, the correctness of the coding and your ability to negotiate with billing companies are some of the variables that affect this cost for dental billing services.
In order to enhance revenue cycles and lessen administrative difficulties oral health offices should have a thorough understanding of average medical billing costs. To increase profitability, it is crucial to understand specifics of claim processing, reimbursement rates and billing laws. Let’s examine pricing schemes, service contracts and variables influencing dental billing and coding expenses.
5 Popular Dental Billing Pricing Models
When charging its clients, dental billing companies employ a variety of pricing schemes, each having pros and cons of their own. Let’s discuss the most popular models.
Percentage Based Dental Billing Fees
Majority of dental billing services take a cut the money made, usually between 4% and 10%. For instance, you might get paid between $20,000 and $50,000 for billing services if your dental office makes $500,000 a year.
- Charges for insurance billing typically range from 4% to 9%.
- Fees for charging dental patients vary from 3% to 6%.
- The fee for full-service dental billing may range from 5% to 10% of total revenue.
To give you an approximate idea, these numbers are the typical dental billing expenses.
Pros
- Aligns the incentives of the billing service with the dental practice.
- Flexible dental billing costs per claim.
Cons
- Dental billing expenses can escalate if collections are high.
- Dental billing companies may prioritize higher-value claims over lower-value ones.
Dental Billing Cost Per Claim, Flat Fee
Fixed cost is charged for each claim or patient interaction under flat fee model. Typically, this dental billing approach includes follow up tracking, payment posting and claim submission. For dentists looking for steady revenue and predictable claims, it’s perfect.
- Service providers charge $4 to $7 each claim for insurance billing.
- The price range for billing dental patients is $1 to $3 per claim.
- Fees for full-service dental billing range from $5 to $10 for each claim.
Pros
- makes financial planning and budgeting simpler by offering predictable prices.
- Dental practice costs are easy to comprehend and control.
Cons:
The time and effort required for intricate claims and procedures might not be appropriately reflected.
Dental Billing Hourly Rates
When a practice needs a lot of help or advice, several dental billing providers charge an hourly premium, usually between $20 and $30. Because of potential for rapid accumulation, we do not advise selecting this dental billing pricing model.
- Hourly rate for insurance billing is between $20 and $30.
- Billing for dental patients: Hourly rates range from $15 to $25.
- Hourly rate for full service dental billing might range from $25 to $35.
Pros:
- Budgeting and financial management are made easier by having clear visibility into where spending are incurred.
- guarantees that practices only compensate for resources used and the actual task completed.
Cons:
Because different jobs and projects demand different amounts of time, costs can be unexpected.
Slower work could be encouraged in order to boost billable hours.
Monthly Retainer Fees
Depending on RCM services and support offered, a monthly fee charged by many dental billing businesses can range from several hundred to several thousand dollars.
Advantages:
- Helps with long-term financial planning by providing predictable expenses.
- Provides the dentistry office with specialized resources and assistance.
- Can cut down on administrative burden by streamlining billing process.
Drawbacks
- For smaller firms or those with lower billing volumes, higher monthly fees might not be financially advantageous.
- may involve services that aren’t always required, which could result in needless expenses.
- Possibility of little freedom to modify retainer amount in response to evolving requirements.
Dental Hybrid Fee Billing Model
Hybrid fee model has aspects of both flat charge model and percentage of collections. For example, a dental billing business may charge a fixed price for simple services like filing claims and then take a cut of successful collections for more complicated revenue cycle management services.
Advantages
- provides a range of payment options.
- maintains a balance between performance incentives and known costs.
Disadvantage
- Could cause misunderstandings regarding fees and billing procedures.
- Depending on the remaining fees and services rendered, it could be morecostly.
Extra Dental Billing Charges
Other fees including clearinghouse fees, monthly minimum fees and hidden fees are also included in the price of dental billing systems.
Fees for Clearinghouses
These fees are associated with the transmission and verification of claims. Fees can range from a few cents to several dollars per claim and can be assessed on a per-claim or monthly basis.
Minimum Monthly Fees
A minimum monthly price may be required by certain billing providers, which could raise expenses in the event of low claim numbers.
Unexpected Charges
These may include fees for services like patient statements or claim resubmissions that are not covered by base price. Contracts must be carefully studied in order to prevent unforeseen expenses.
Dental Billing Service’s Average Cost Variance
Numerous variables, such as pricing model selected, volume of claims and particular requirements of your clinic, affect typical dental billing cost. In order to make wise choices for your financial security, you need investigate your possibilities.
The following provides a brief summary of dental billing expenses under common pricing models:
- a portion of overall collections, usually between 4% and 10%.
- a fixed cost each claim (between $4 and $10).
- a fee per hour (which can range from $20 to $35, depending on services).
10 Key Elements That Affect Dental Billing Prices
Aside from pricing models, let’s quickly review the top ten aspects that influence dental billing rates.
1. The size and complexity of dental practices
Costs may be greater for larger dental clinics with more complicated billing requirements than for smaller, more straightforward ones.
2. Dental Claims Volume
Pricing structure may be impacted by the volume of claims processed each month. Dental billing firms provide tiers of pricing according on the volume of money received.
For the dental billing provider, a higher volume typically translates into more work and higher rates. A volume discount might be advantageous for dental offices that file a large number of claims every month. However, they should also anticipate increased dental billing expenses.
3. Dental Billing Service’s Scope
The range of services provided determines costs for dental billing services as well. Basic claim submissions may be less expensive than end-to-end services that include patient registration, insurance verification, coding, billing and collections.
4. Dental Claim’s Intricacy
Higher billing fees are sometimes incurred by dental professionals when addressing claims that call for specific coding, more paperwork or special handling.
5. Geographical Position
Dental billing rates are heavily influenced by geographic location. Fees may be higher in places where living expenses are higher or where there is greater competition among billing service providers. Knowing state of local market helps one better estimate true cost.
6. Dental Billing Fee Types
Transactional fees and administrative fees are the two categories into which dental billing expenses fall:
Fees for Transactions: Every claim submission and processing, including managing refused claims and patient statements, results in transactional dental billing fees.
Administrative Charges: Managing billing process includes additional costs for dental billing, such as insurance verification and patient registration. Although they are frequently set, they may change depending on size and range of services offered by the dental office.
7. Setup Charges
In order to pay for the expenses of integrating their systems with the electronic health records (EHR) of your clinic, a lot of dental billing providers charge setup fees.
Cost of these fees can vary greatly; they often range from $300 per provider to $1,000 to $1,500 for bigger operations. There are no startup fees while using Enfinity Medical Billing.
8. Software & Tech Fees for Dental Billing
Higher service fees may result from automated billing and collection processes and advanced technological solutions. However, they also increase accuracy and efficiency.
The total cost of dental billing may also be impacted by the kind of billing software utilized. More sophisticated medical billing systems can cost up to $15,600 for large healthcare facilities, while basic systems may start at $50 per month.
9. Needs for Dental Specialties and Customization
The expenses may rise if your dental office specialized in particular dental services or needs custom dental billing solutions. Because they need more time and money to design, tailored services are frequently more expensive.
Why Choose Enfinity for Dental Medical Billing Outsourcing?
Within first three months of working with Enfinity Medical Billing, you may increase productivity and income of your dental office by outsourcing your billing.
Our dental specific medical billing staff ensures correct coding and fewer denials by using cutting-edge technology to streamline billing. We take care of everything, from filing claims to following up, so you can concentrate on patient care rather than paperwork.
Best of all? For dental billing services, we provide clear pricing with no hidden fees or setup charges. To find out exactly how we can save you a ton of money, schedule a free consultation right now.
