How Much Does It Cost to Outsource Medical Billing in 2025? Full Breakdown for Clinics

how much does it cost to outsource medical billing

Running a medical practice is demanding enough without the added stress of billing and claim management. If you’re a doctor, clinic manager, or administrator asking how much does it cost to outsource medical billing, this guide is exactly what you need. We’ll break down the pricing models, typical fees, and what you get when hiring a billing service.

What Is Outsourced Medical Billing?

Outsourced medical billing means a third-party company handles claim submissions, patient billing, collections, and insurance follow-ups on your behalf. This allows your internal team to focus on patient care while experts manage your revenue cycle.

Average Cost to Outsource Medical Billing in 2025

The cost can vary depending on your practice size, specialty, and billing volume. Here’s a breakdown:

Percentage-Based Model

  • Most common pricing model
  • Typically, 4% to 9% of the monthly collections
  • Used by full-service billing companies

Flat Fee Per Claim

  • Usually $3 to $6 per claim
  • Works best for low-volume practices

Hybrid Models

  • A base monthly fee + percentage
  • Useful for specialized or high-volume practices

What Affects the Pricing?

Several factors can influence how much you pay:

  • Specialty: Complex coding (e.g., cardiology or orthopedics) may cost more
  • Claim Volume: Higher volumes often qualify for volume discounts
  • Software Integration: Some companies charge extra for EHR/PM software integration
  • AR Follow-up & Denial Management: Premium services add to the cost

Is It Worth It? In-House vs. Outsourcing

Cost FactorIn-House BillingOutsourced Billing
Staff SalariesHigh (billing team)None
Software & TrainingRecurring costsUsually included
Claims Denial RateOften higherLower (professional mgmt)
Focus on Patient CareDistractedFully focused

Many practices find that outsourcing saves them more money and allows them to collect faster, especially when factoring in staffing headaches, turnover, and training costs.

how much does it cost to outsource medical billing

Why Choose Zanexmed?

At Zanexmed, we specialize in helping small to mid-sized clinics streamline their billing. Our pricing is transparent, customizable, and designed to grow with your practice. We have a plan for you, whether you’re just starting or looking to scale.

Get a Free Billing Quote Today

Contact us now for a no-obligation quote and find out how much you could save.

    Outsourcing medical billing is not just about reducing costs—it’s about increasing your clinic’s efficiency and financial performance. By understanding the cost structure and choosing the right partner, you can focus on what matters most: caring for your patients.