Medical billing software is an essential tool for healthcare providers and medical practices looking to streamline their billing and increase revenue. With the right medical billing software, practices can automate administrative tasks, optimize workflows, reduce denied claims, and get paid faster. However, like any major business software purchase, determining the cost of medical billing software is key. Here are some factors to consider when budgeting for medical billing software.
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The most straightforward component of medical billing software costs is any one-time fees you’ll incur upfront when purchasing the software. This usually includes:
- License fees: The cost to purchase licenses to use the software for a set number of users. License fees can range from a few hundred to a few thousand dollars per user.
- Implementation fees: Fees to have the software installed, configured, tested, and your data migrated. Implementation typically costs a few thousand dollars.
- Training fees: Charges for vendor-provided training on using the software. Budget $1,000-$2,000 for training.
- Customization fees: If you need the software customized for your unique workflow, there may be additional custom development fees.
- Hardware costs: If new hardware like servers or computers are required to run the software.
There are also ongoing costs of medical billing software to account for:
- Monthly subscription fees: Many medical billing software vendors charge a monthly fee per provider or user for access to the software. These range from $50-$150 per month per user.
- Monthly server fees: Some medical billing software is hosted on remote servers for a monthly fee, rather than installed locally. Budget $100-$300 per month.
- Support and maintenance fees: Most vendors charge an annual support and maintenance fee. Typically 15-20% of the software license cost covers support.
- Upgrade fees: When new versions of the software come out, there may be upgrade fees to purchase. Budget for major version upgrades every 2-3 years.
Finally, consider any additional services, integrations, or capabilities that could maximize the value of your medical billing software:
- EHR/PM integrations: Integrating your medical billing software with EHR and practice management software creates a complete solution. But integrations often cost extra.
- Analytics and reporting: Robust analytics and reporting features provide insights into your revenue cycle performance. This may come at an additional cost.
- Patient payment portals: Many medical billing software platforms can integrate patient payment portals, for expanded payment options. Portal costs are often an add-on.
- Mobile access: For on-the-go billing management from smartphones or tablets, mobile access capabilities may cost extra.
- NEMT billing services: Companies like NYBillPro offer NEMT billing services to maximize revenue from non-emergency medical transportation claims.
The total cost of ownership depends on your workflow needs, number of users, and which capabilities are most valuable for your practice. But following this guideline for software, service, and integration fees helps estimate the budget impact of medical billing software. Adding services like those offered by NYBillPro for NEMT billing can further improve your practice’s revenue cycle management.