How Much Does a Medical Billing Company Make

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Medical Billing is currently getting popular among healthcare fields. That’s why a number of companies offer medical billing services to independent medical practices, hospitals, clinics and many others. They commonly offer a variety of services that are related to medical billing and coding.

Since medical billing and coding services are promising business today, many people are wondering how much a medical billing company earns money. However, there are so many medical billing companies that try to provide the best of the best services to any facility. To find out the information about the income of a medical billing company, let’s see our post below!

How Much Does a Medical Billing Company Earn Money?

Talking about how much a medical billing company makes money, of course we should keep in mind that each company will earn a different amount of money, depending on the facilities either from the number of patients or the inspection fees of a facility.

In this case, we cannot generalize the income of every medical billing company, as the income that each company earns will actually be different. However, we can estimate the income  that a medical billing company earns through a medical billing income calculator that you can find at the American Business Systems site.

How Much Does a Medical Billing Company Make
To access the medical billing income calculator, you can access ABS site here. By clicking the link, it will take you into ABS medical billing income calculator.

At the page, you can see the detailed calculator that will allow you to examine more detailed pricing scenarios. The formula and the calculations provided on the medical billing income calculator are based on the numbers that are provided to ABS by actual Business owners.

Keep in mind, the medical billing income calculator is just an estimation, sure the real income that the medical billing company will get could be lower or higher from the estimations.

As you can see at the ABS’s medical billing income calculator, there are some forms that you should fill to find an estimated medical billing company income. Here are some forms that you should fill:

  • Number of doctors you would like to have as clients
  • Average number of patients each doctor sees per day
  • Average number of days the office is open per week
  • Charger …% of an average claim amount of $…

Let’s take an example to get an estimation!

  • For the number of doctors, we try to fill the form with 8 doctors.
  • For the average number of patients, we try to fill the form with 30 patient
  • For the average number of days, we try to fill the form with 5 days.
  • We then fill 8% of an average claim amount of $120

Okay, let’s see how much income a medical billing company will earn by clicking the ‘Submit’ button. Afterwards, you will see the result of a company income when we fill the form with those numbers that we mentioned above.

Then, we get an estimation of a medical billing company earns, including:

  • Total Yearly Gross Income: $599,040 each year servicing 8 offices
  • Average Monthly Gross Income: $49,916 monthly income

So, we can get a result where a medical billing company will earn approximately $49,916 monthly and around $599,040 yearly. Again, we emphasize that the amount of income that we show above is just an estimation that we get from ABS’s medical billing income calculator. Of course, the real income of a medical billing company can be higher or lower from our estimation.

Estimated American Business System Income

American Business System is one of the most popular medical billing companies in the United States. This company actually offers the most comprehensive management solutions on the market.

Some aspects of practice management and cash flow optimization that ABS company provides include collections, claims filling, EMR, coding, payment services, digital records management, automated marketing, HIPAA compliance, audit services and many others.

ABS is one of medical billing companies that shows their potential income in detail. They actually use the medical billing calculator and also through their estimation calculations shared on their YouTube Channel ‘American Business Systems’.

In a video entitled ‘How Much Can You Earn as a Medical Billing Company Owner?’, they show their potential income through estimation calculations. You can watch ABS video sharing about a medical billing company income here.

They try to estimate to take 1 doctor on average with 25 patients per day and each patient is valued $100/ patient. To ease you understand the estimation, let’s see the detail below!

  • 1 doctor
  • 25 patients
  • $100/ patient

Total earnings: 25 patients x $100 = $2,500

Your potential daily earnings: $2,500/ day x 6% = $150/ day

Your potential yearly earnings:

  • $150/ day x 5 days per week
  • $750/ week x 52 weeks = $39,000

How Is Estimated Economic Impact?

The estimated will actually increase in annual revenue per patient”

  • Chronic Care Management: $230
  • Remote Patient Monitoring: $610
  • Total Increase in annual revenue per patient: $840

Estimated increase in annual revenue per 250 patient

Total potential annual revenue to practice: $210,000

Here’s for detail:

  • Your estimated revenue per patient: $12.50
  • $12.50 x 250 ppm = $3,250
  • $3,250 x 12 months = $37,500

Okay, we can conclude that a medical billing company’s income will increase year-by-year and it delivers a huge impact on the economy.

What Does the Specific Billing Company  Provide?

The margin of the companies around 5% range in medical billing price is the wide variety of services that medical billing companies offer and independent practices request. Today, the big margin for medical billing companies has been over.

With a higher margin of medical billing companies use, they may be providing a lot of great services to their clients. So, here are some services that medical billing company commonly provides:

The revenue cycle of the modern medical practices has several steps:

  • Charge Entry
  • Claim submission
  • Payment posting
  • Accounts Receivable
  • Claims Appeals
  • Patient Statements
  • Reporting

On top of those steps, most modern practices will also need assistance with other items like:

  • Credentialing & Enrollment
  • Coding
  • Patient Collections
  • Patient Inquiries
  • Pre-Authorizations
  • HIPAA Compliance
  • Value-based Care
  • Online Patient Payment Options
  • Data Analytics

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