Why a Percentage-Based Medical Biller Is Worth the Investment: Save Money on Billing Costs

Is Medical Billing Too Expensive? Think Again.

Many healthcare providers hesitate to hire a medical biller, thinking it’s an unnecessary expense. If you’re managing your own billing or considering an hourly biller, you might believe you’re saving money—but in reality, you could be losing thousands in unpaid claims, denied reimbursements, and wasted time.

A percentage-based biller may seem like a higher upfront cost, but they’re often the smarter financial choice for your practice. Here’s why.

1. Percentage-Based Billers Work Harder to Maximize Your Revenue

When a biller is paid based on collections, their success is directly tied to yours. They don’t just process claims—they ensure you receive every dollar you’re owed.

• They follow up on denied or underpaid claims aggressively.
  According to a report by the Medical Group Management Association (MGMA), the average denial rate for medical claims is estimated to be between 5% and 10%, and up to 50% of denied claims are never resubmitted (PCG Software).

• They optimize coding to maximize reimbursements.
  Accurate medical billing helps healthcare providers increase their cash flow, maintain financial stability, and improve patient satisfaction (GetReferralMD).

• They track trends and address payment issues proactively.
  Billing errors can lead to denied claims, lost revenue, compliance risks, and patient dissatisfaction (Elation Health).

By contrast, an hourly biller gets paid the same no matter how much they collect. If they take longer to process claims or fail to follow up on rejections, you’re the one who loses money.

2. Hourly Billers Can Cost You More Over Time

At first, an hourly biller may seem like the cheaper option. However, consider the hidden costs:

• Inefficiency: If they work slowly or inefficiently, you pay more for fewer results.

• Lack of urgency: Without a stake in collections, they may not prioritize fast payments.

• Billing errors: An estimated 49% to 80% of medical bills contain at least one error, leading to revenue loss (Therapy Brands).

With a percentage-based biller, you only pay when you get paid. You’re not covering wasted hours—you’re investing in results.

3. Predictable Costs and Scalability

Hourly billing fluctuates, making it hard to budget for your practice. One month, you might pay for 15 hours; the next, 40.

Percentage-based billing is tied to your revenue. If your practice grows, your biller helps you scale. If your revenue dips, your billing expense decreases too. This flexibility makes financial planning easier.

4. The Cost of Not Hiring a Quality Biller

Many providers avoid hiring a biller because they think they can’t afford it—but the real cost is in lost revenue.

• Unpaid or underpaid claims.
  Billing errors significantly contribute to claim denials, creating major setbacks for revenue cycle management (LinkedIn).

• Time spent fixing billing mistakes instead of seeing patients.
  Administrative costs associated with physician billing can be substantial, representing a significant portion of professional revenue (NCBI).

• Revenue loss from delayed follow-ups on denials.
  Addressing billing errors promptly is crucial to avoid revenue loss and maintain operational efficiency (Oystehr).

A great biller pays for themselves by increasing collections and reducing administrative headaches.

Stop Losing Money | Start Collecting What You Earned

Before dismissing a percentage-based biller as “too expensive,” ask yourself:

• Are you confident that all your claims are being processed and paid correctly?

• Do you have time to fight denied claims, track underpayments, and maximize reimbursements?

• Are you unknowingly leaving thousands of dollars on the table?

A percentage-based biller isn’t just a cost—it’s an investment. The right billing partner ensures your practice is financially healthy, allowing you to focus on what matters most—your patients.

FAQ

What is the difference between hourly and percentage-based medical billing?

• Hourly billing pays the biller based on the hours worked, with no connection to the amount collected. Percentage-based billing ties the biller’s pay to a percentage of the revenue collected, making them incentivized to maximize your payments.

How much should a medical practice pay a biller?

• Typically, percentage-based billing ranges from 4% to 10% of collections. The percentage depends on factors like practice size, complexity, and billing volume.

Ready to Take Control of Your Revenue?

Let’s talk! Schedule a free consultation today to see how a percentage-based biller can help you increase collections, reduce stress, and grow your practice.