Most outsourced medical billing companies charge between 4 and 10 percent of monthly collections. WeBill Health charges 6 to 8 percent for full cycle revenue cycle management, which includes prior authorization and advanced eligibility verification, and 8 to 10 percent for accounts receivable recovery alone. Smaller practices are priced monthly instead, as low as $350 for practices collecting under $3,000 and from $500 for practices under $10,000. Those flat monthly tiers cover billing only. Credentialing is priced separately at every tier.
You will not find those numbers on most billing company websites. You will find a contact form.
We think that is a bad answer to a fair question, so this page publishes what we charge, what moves the number up, what moves it down, and what is not included. If our pricing is wrong for your practice, you should be able to work that out before you speak to anyone.
What is the industry benchmark for billing costs?
Industry benchmarking commonly places total billing and revenue cycle cost at roughly 5 percent of collections. That figure covers the whole function, whether the work happens in house or with an outside partner.
Outsourced pricing usually sits between 4 and 10 percent. The spread is wide because the phrase “medical billing services” covers very different amounts of work. A company that submits clean claims you hand them is doing a fraction of the work of a partner that verifies eligibility, obtains prior authorizations, codes the encounter, appeals denials and chases aged accounts receivable.
Compare percentages only after you know what each one includes. A 4 percent quote that excludes prior authorization and denial work is usually more expensive than a 7 percent quote that includes both.
What does WeBill Health charge?
| Service | Price | Notes |
|---|---|---|
| Full cycle RCM | 6 to 8 percent of collections | Coding, submission, denial defense, A/R follow up, weekly velocity reporting, plus prior authorization and advanced eligibility verification |
| A/R recovery only | 8 to 10 percent | Recovery of existing aged or denied claims, without ongoing billing |
| Small practice pricing | As low as $350 per month | Practices collecting under $3,000 monthly. Billing only |
| Entry pricing | From $500 per month | Practices collecting under $10,000 monthly. Billing only |
| Prior authorization and advanced eligibility on a flat monthly plan | Priced separately | Quoted on authorization volume. Included at no extra cost on the percentage plans |
| Setup fee | $300 to $1,000 | Depends on EHR access, provider count and inherited A/R condition |
| Credentialing maintenance | $150 per provider per year | Not included in the percentage |
| New credentialing, commercial payers | From $100 per payer | Lowest rate applies at 5 or more providers with multiple applications |
| New credentialing, Medicare and Medicaid | $500 per provider | Higher complexity and longer enrollment cycle |
| Contract | Annual, one month written notice |
Why is A/R recovery more expensive than full cycle billing?
This looks backwards until you understand what the work is.
Full cycle billing is preventive. We control the claim from eligibility through submission, so most claims pay on the first pass. Volume is predictable and the collection rate is high.
A/R recovery is forensic. We inherit claims that have already been denied, underpaid or left to age, often by a previous biller, sometimes past the easy appeal window. Every one requires investigation, documentation retrieval and an appeal. Collection probability is far lower, and a meaningful share of what we work will never pay regardless of effort.
The higher percentage prices that difficulty. It also aligns the incentive correctly: we only earn on what we actually recover, so claims we cannot collect cost you nothing.
What makes the percentage go up?
These push a practice toward the 8 percent end, or above it in unusual cases.
- Low monthly collections. The work of billing does not shrink proportionally with revenue. A practice collecting $40,000 a month needs almost the same submissions and appeals as one collecting $80,000. Below roughly $10,000 monthly, percentage pricing stops working and we switch to flat monthly pricing, starting at $500, or as low as $350 for practices under $3,000.
- Complex specialty coding. Specialties with heavy modifier logic, time based units or global period rules take more coder time per encounter. Orthopedics, pain management and applied behaviour analysis cost more to bill correctly than straightforward office visit specialties.
- Heavy prior authorization volume. These are included in the 6 to 8 percent, so a practice with demanding authorization requirements sits nearer 8 than 6. The front end workload is genuinely larger and the percentage reflects it.
- Weak front desk documentation. If demographics, insurance details and clinical documentation arrive incomplete, we spend time reconstructing them. This is the most common reason a quote comes back higher than a practice expected, and it is fixable.
- Credentialing alongside billing. Credentialing is priced separately at flat fees, but a practice enrolling several new providers at the same time as onboarding billing is a larger engagement overall.
What brings the percentage down?
- Higher monthly collections. The clearest lever. Fixed work spreads across more revenue, and larger practices sit nearer 6 percent.
- Clean existing accounts receivable. A practice handing over a healthy A/R needs no recovery project. Nothing reduces a quote faster than not inheriting a mess.
- Simple payer mix. Two or three dominant commercial payers is materially less work than a long tail of plans each with its own rules, timelines and portals.
- A front end that already works. If your staff handle prior authorization and eligibility well, that work costs us less and your percentage sits nearer 6. We will tell you honestly whether your front end is performing well enough to leave alone.
- Adding providers or locations. Growth improves your rate. Onboarding a fourth or fifth provider into an existing engagement costs us far less than starting fresh.
Is percentage of collections better than a flat fee?
It depends on what you want your billing partner motivated to do.
| Percentage of collections | Flat monthly fee | |
|---|---|---|
| Who carries the risk | Shared. If collections fall, our revenue falls | You. The fee is the same whether collections rise or fall |
| Incentive to appeal a small denial | Present. Every recovered dollar earns | Weak. Appeals cost labour and change nothing |
| Cost predictability | Varies with revenue | Fixed and easy to budget |
| Best suited to | Practices wanting a partner invested in collection performance | Practices with very stable revenue wanting budget certainty |
We are not neutral on this. We use percentage of collections because a flat fee vendor is paid identically whether your denial rate is 5 percent or 25 percent, and we do not think that produces good billing. But a flat fee is a legitimate choice if predictability matters more to you than performance, and some practices reasonably prefer it.
Are you the cheapest option?
No, and we do not try to be.
There are companies billing at 3 to 4 percent. That price generally means offshore processing at volume, no dedicated contact, and no one reading payer policy updates on your behalf. It can work for a practice with simple billing and clean documentation.
What we sell is different. Every claim receives human pre submission review against payer rule libraries maintained by people who work your specialty. You get a dedicated US based billing manager reachable by direct line, and weekly velocity reports showing exactly where your money sits. Our providers operate at a 98 percent clean claim rate, a 48 hour submission guarantee, and a 40 percent average reduction in accounts receivable.
If the deciding factor is the lowest possible percentage, we are not the right partner and we will say so early.
How do you know what you are actually paying today?
Most practices comparing quotes are missing the more important number: what their current arrangement costs in revenue that never arrives.
A practice paying 5 percent with a 12 percent denial rate is paying far more than one paying 8 percent with a 3 percent denial rate. The percentage is visible. The leakage is not.
Get your Revenue Defense Score. Six questions, sixty seconds, and a benchmarked view of how well your practice prevents, detects and recovers lost revenue. It will not price an engagement. It will tell you whether your current billing is costing you more than any percentage on this page.
Frequently asked questions
How much do medical billing companies charge?
Most charge 4 to 10 percent of collections. WeBill Health charges 6 to 8 percent for full cycle RCM, including prior authorization and advanced eligibility, and 8 to 10 percent for A/R recovery only. Smaller practices pay a flat monthly fee instead, from $500 under $10,000 in collections and as low as $350 under $3,000, covering billing only. Credentialing is separate at every tier.
Is there a setup fee?
Yes, between $300 and $1,000 depending on EHR access, provider count and the condition of your existing accounts receivable. A practice with clean A/R and straightforward EHR access sits at the lower end.
Is credentialing included in the percentage?
No. Credentialing maintenance is $150 per provider per year. New commercial payer enrollment starts at $100 per payer, with the lowest rate applying at 5 or more providers with multiple applications. Medicare and Medicaid enrollment is $500 per provider.
Is prior authorization included in the percentage?
Yes, on the percentage plans. The 6 to 8 percent full cycle rate includes prior authorization and advanced eligibility verification alongside coding, submission, denial defense and A/R follow up. On the flat monthly plans for smaller practices, $350 and $500, the price covers billing only and prior authorization is quoted separately on your authorization volume.
What is the contract length?
Annual, with one month written notice.
Why would a practice pay 8 percent instead of 6?
Lower monthly collections, complex specialty coding, a difficult payer mix, or incomplete front desk documentation. Collections volume is structural. Documentation quality is fixable, and we will tell you if that is what is driving your quote.
Get a real number for your practice
The ranges on this page are honest, but they are ranges. Your number depends on your collections, specialty, payer mix and the state of your existing A/R.
Request your Revenue Health Audit. We review your existing accounts receivable, show you where revenue is leaking, and quote a specific percentage for your practice. You get the analysis whether or not you work with us.
Prefer to talk it through? Book a 30 minute call with a US based billing manager who works your specialty.
