The Best Medical Billing Services of 2024

Medical practices contend with a convoluted billing process involving payers, clearinghouses, rejections and denials. This system can often mean practices have to wait weeks or months to see payment for services rendered to patients. It’s also a highly bureaucratic process, requiring dedicated medical billers and coders creating and tracking claims until payment is received. All these factors could add up to immense costs and serious cash flow challenges. That’s why there are revenue cycle management (RCM) services, also known as medical billing services. These outsourced services will handle some or all of the aspects of a practice’s medical billing needs.

“A medical biller will create, scrub and submit daily charges, as well as work Clearinghouse rejections, post payments and work denials  and send any applicable balances to patient responsibility,” said Stormy Sturz, CPC, CPMA, vice president of operations for Complete Practice Solutions. “A medical biller will also often aid the front office in ensuring the proper entry of patient insurance information.”

We did the work for you to identify some of the best RCM services on the market. From charge entry to medical coding, claims submission and denial management, each of the billing services below offer an efficient and reliable way to outsource your medical billing.

*Some billing companies rely on a composite first-pass claims acceptance rate, which may slightly inflate the percentage of claims truly accepted and paid on the first pass.

**RXNT does not offer medical billing services; instead, it provides software used by medical billers in practices and at RCM companies.

Not sure if our best picks are the right fit for your medical practice? Consider these alternatives we reviewed, which also offer reliable, effective revenue cycle management services.

• ChartLogic: ChartLogic is among the most hands-on medical billing services we reviewed. All ChartLogic RCM clients are paired with a dedicated account manager during setup. This contact will check in with you before and after implementation to solve any problems. Alongside this extensive support comes a team of certified medical coders and billers. Each biller or coder on ChartLogic’s staff is highly experienced in a certain medical specialty and will be assigned to you accordingly. Among billers and coders well versed in a given specialty, you’ll be paired with contacts who know your local payers’ unique rules. ChartLogic provides all of this at a low cost. You’ll pay 3% to 6% of your monthly collections to use ChartLogic, which is competitively priced even on the high end.
  
• CureMD: CureMD is among the most versatile medical billing services we reviewed. It can manage the revenue cycle of 32 medical specialties with its vast knowledge of ICD-10 codes and payer rules. It also charges as little as 5% of your monthly collections. Most of the companies we reviewed charge 6% to 8% of monthly collections (and some charge as high as 9%), making CureMD’s pricing highly competitive. Although medical coding and billing are its bread and butter, you can also hire CureMD for denial management, credentialing, schedule review and insurance eligibility verification.
  
• MedicsRCM: MedicsRCM from Advanced Data Systems is a low-cost medical billing service with features that offer outstanding value. It charges 3% to 6% of your monthly collections – a very competitive range compared to other medical billing services we reviewed. For any claims that get denied or rejected, MedicsRCM will manage the entire revision and resubmission process within three days. MedicsRCM will also verify your patients’ insurance so you can know whether payers will actually cover your services. We like that MedicsRCM takes the time to understand your payer mix, specialty and state billing requirements. With this information, MedicsRCM can submit your claims at their highest possible value, potentially earning you more revenue. MedicsRCM also offers out-of-network scheduling alerts, 24/7 data access and a patient responsibility estimator.

Medical practices can expect to pay 3% to 9% of their monthly collections for RCM. Your exact rate will depend on several factors, including your claim volume, average claim value, billing cycle complexity and practice size.

“In addition to a percentage of collections, a revenue cycle management company will likely charge for additional services such as credentialing, contract negotiations, coding services, authorization services, and custom reporting,” Sturz said.

Depending on your rate, outsourcing your medical billing may prove more expensive than hiring an in-house team. However, outsourced medical billing often includes detailed financial reporting and specialty expertise that an in-house team might not offer.

“A medical practice may decide to have in-house billers if they are a smaller practice with knowledgeable and trained staff to handle all areas of the revenue cycle,” Sturz said. “When determining the cost difference between an in-house or outsourced billing scenario, you would want to keep in mind the extra costs having an in-house biller comes with.”

According to Sturz, in addition to an in-house biller’s salary, employers typically offer PTO, healthcare benefits and workers comp insurance.

“When you outsource your billing, you don’t have to worry about those extra costs, as well as the HR maintenance of those employees,” Sturz added.

To make the proper choice between in-house and outsourced, you should ask your RCM candidates for full details of the services you get with your plan. You should also clarify whether clearinghouse fees, if applicable, are part of the monthly cost or added on later. Lastly, you should check whether copays count as part of your collections. The answer will affect how much you pay monthly.

Charge entry and coding

Though this is not universal, most medical billing service providers will handle charge entry and coding, kicking off the billing process at its very first step. This step even precedes claim scrubbing and submission – without it, the process hasn’t truly begun. If your medical billing company of choice doesn’t offer this service, an in-house staff member will need to handle it.

This example of charge slip templates comes from AdvancedMD, our best pick for large practices. (Source: AdvancedMD)

Claims scrubbing

Thoroughly scrubbed claims are far less likely to result in denials or rejections, especially when your medical billing service of choice includes a rules engine. Companies with these engines automatically check their claims for errors that payers commonly use to deny or reject claims. Once these errors are flagged, you or your medical billing company can revise them and refile your claims with these mistakes excluded. The result will be a higher FPAR and faster payment.

“Claim scrubbers are a useful tool to identify common coding errors such as bundling, ICD mismatch/NCD linkage errors, and invalid code entries amongst many others,” Sturz said. “Rules Engines are particularly useful for building your own custom errors based on your own knowledge of a particular situation to ensure that claims are going out as clean as possible per payer guidelines.”

Denied-claims management

No medical billing service can entirely avoid denied claims, but most medical billing companies will manage the revision and resubmission processes when this does happen. Some companies will go the extra mile and prioritize denied claims to get them paid as soon as possible. In either case, your back-office staff won’t be left poring over rejected or denied claims, trying to find and fix errors before resubmission.

Medical software access

While not necessarily reflective of the quality of the billing service itself, most RCM companies include access to their PMS and EMR system in their offerings. This can be a cost-effective way to gain access to some of the top medical software on the market. Most medical billing providers will also require you to use their PMS, though you can typically use whichever EMR system you please. If not, you may have to pay extra to migrate your data from your old EMR system to your new one.

Medical software includes clinical tools like patient medical charts and demographics. This example comes from CareCloud, our best pick for flexibility. (Source: CareCloud)

“You should expect full transparency from a medical billing service within your medical software platform,” Sturz said. “Stray away from companies that plan to bill services out of a separate software.”

Flexible services

Some medical billing companies can manage as much or as little of the revenue cycle as you need. If you’re only looking for someone to pick up the slack after you file your claims, you can arrange an appropriate deal. But if you’re looking to entirely outsource your RCM, you can do that as well. However, some medical billing companies don’t offer certain services, such as charge entry and coding. In this case, you may need in-house billers and coders.

Integrated clearinghouse

As part of your medical billing service, you want either a fully integrated clearinghouse or a partnership with one that results in no extra fees for your practice. Most of the companies we reviewed have one of these two arrangements, and a small number even bypass clearinghouses entirely and submit medical claims directly to payers. Make sure to ask about clearinghouses and fees anytime you speak with a potential billing services provider.

Follow-up on unpaid claims

Virtually every medical billing company we reviewed will follow up all unpaid claims on your behalf. This service applies to payments from both your patients and their payers. An effective medical billing service will follow up on unpaid claims promptly and repeatedly until the account is settled. When handling patient statements and follow-ups, the best medical billers consider customer service and how their collection efforts could reflect on your practice.

As with any service, a firm knowledge of the advantages your practice will receive is key to your RCM choice. That’s because an in-house medical billing staff is often less expensive, but the benefits of outsourcing may be well worth the extra spend.

• Greater efficiency: Especially if you’re a small practice, outsourced medical billing can be key to ensuring your team isn’t overworked. Small practices’ front-office teams are often jacks of many trades for whom the revenue cycle is tedious, lengthy and complex. Outsourcing the process (partially or entirely) alleviates this challenge.
• Higher accuracy: Claim errors from carelessness are a huge revenue drain. When you outsource your billing to experts, especially those with rules-based engines, you mitigate this risk. These experts and their technology are a powerful combination for identifying potential claim errors and solving them before they become huge issues.
• More collections: Outsourced medical billing teams focus entirely on billing. The result is more collections more quickly. Even the best in-house teams, given their many responsibilities, can rarely achieve the revenue peaks possible with outsourcing.
• In-depth data and analytics: Many medical billing services will analyze your accounts receivable and use the trends they observe to suggest modifications to your processes. You should also be able to create reports at will in the included PMS. Through these reports, you can get a clear view into your finances and see how to adjust your operations for more revenue.
• Practice management consultation: Especially for smaller practices, the consulting services that accompany RCM can precede growth. The operational advice you receive can result in more revenue, which you can invest in hiring more staff or expanding your services. And if you follow your consultant’s recommendations, you’ll be on a fast path to even more revenue soon enough.

1. Get a full picture of the company’s features.

Claim scrubbing and follow-up are par for the course. You’ll also commonly find that RCM companies include reporting, consultation, and EMR and PMS access with your services. Check for these features as you speak with company representatives.

You should also determine whether the features that accompany your medical billing leave the company or your own team responsible for entering and coding charges. It’s worth asking if your billing service candidates are following the most recent ICD-10 coding system updates. You should also get a sense of the billing company’s experience with other practices in your specialty. Lastly, ask about the depth and extent of reporting and analytics solutions.

“You’ll want to ensure that your medical billing service has implemented & maintains timely billing processes, from claim creation to submission, and in every other area of the claim cycle,” Sturz said. “Your medical billing service should provide you with monthly reporting that includes a financial summary (charges, payments, contractual adjustments) as well as both patient and insurance aging reports. 

2. Compare prices.

RCM companies will generally take a monthly percentage of your collections instead of charging a flat fee. The percentage will vary based on the factors described above, and different billing services may quote you different percentages. Think about whether a company that charges you more would provide better services than your other candidates before making a decision.

As you compare prices, you should also check whether the RCM company includes EMR system and PMS access with its billing services. These inclusions may justify the company charging higher prices. That said, most medical billing services require you to use their PMS (and a few have the same rule about their EMR system). In some cases, migrating your data from your old platform to your new one may incur additional charges.

3. Determine how long setup and implementation will take.

Since you’ll be installing software (unless you are opting to work through your existing software provider for your billing), you’ll need to account for the implementation process in the timeline. Fully setting up the software side of your billing services often takes several weeks to three months. Sometimes, the setup process results in additional fees, though we found that many companies include implementation and training for free.

Check whether your medical billing provider includes free training with your implementation. If it does, chances are you’ll be paired with a dedicated account manager who will help you set it up. You may also get access to setup resources you can browse on your own time.

4. Figure out your support options.

With medical billing services, support isn’t just about phone calls and emails; it’s about having a full, transparent window into your billers’ work at all times. Look for providers whose PMS platforms include a portal where you can see your claims’ real-time status and look over your third-party billers’ work.

On the traditional support side, you should check whether you can reach your provider by phone, email or live chat at all times or just during weekday business hours. The company’s representatives should be happy to assist you and easy to reach.

Your billing service should also provide you with your payers’ electronic remittance advice and explanations of benefits. These documents are important for obtaining a transparent view into your payers’ operations.

5. Consider patient engagement tools.

Medical billing is primarily a payer-facing need, but not entirely. Since most medical billing services require you to use their PMS, they may also manage the patient portal that most PMS platforms include. This means that your billing service can directly send patients their statements and follow up on unpaid charges. Should statements go unpaid long enough, your billing service could even oversee the process of sending patients to collections.

It’s important to find out whether the patient portal will cost your company extra or is included with your billing services. You should also find out how exactly your company of choice pursues unpaid bills and how long it waits to send these bills to collections.

At Business News Daily, our team of small business billing experts have been researching and testing medical billing services for years, comparing some of the leading solutions across more than 20 key metrics. We considered 14 medical billing platforms and closely reviewed and tested 10 of them before selecting our six best picks above.

Below are the factors we considered when determining our best picks. Each is weighted according to how much the criteria typically influences business owners’ buying decisions.

• Pricing (30%): We considered not just the base cost of the software but also the number of pricing plans, contract minimums, additional fees and add-on costs to determine which provide the most value per dollar.
  
• Features (25%): We particularly evaluated the medical billing process from start to finish, including charge entry and coding, claims scrubbing, clearinghouse integrations, rejection and denial management, and ERA posting. We also looked for medical billing services that provided clear reporting through integrations with medical billing software.
  
• Usability (20%): We considered the medical software each billing service worked within and how user-friendly these platforms were. We placed particular emphasis on medical billing services that offered flexibility in medical software, allowing practices to keep using the platform they are already familiar with.
• Customer Support (15%): We examined the ease with which customers can contact the team in need of help. We reviewed customer feedback to determine how well the customer service team meets the needs of existing customers.
• Expert Insight (10%): Our product reviews are conducted by industry experts who are deeply familiar with medical billing services. Given their institutional knowledge of different platforms and firsthand experiences using these programs, we take their judgment into account when determining our best picks.

In addition to scoring each medical billing service we reviewed based on this criteria, we also determined the best use case scenarios for each. No two businesses are exactly alike, so we put ourselves in the shoes of different types of small business owners and identify the best medical billing service for a variety of needs.

To learn more about how we review and test billing products and services for small businesses, read about our editorial process here.

The medical billing industry is projected to see significant growth in the coming years. Spherical Insights predicts a compound annual growth rate (CAGR) of 13.23 percent for the global medical billing outsourcing market through 2032. Spherical Insights data also shows that the market will reach a total value of $41.9 billion by 2032. This puts numbers to the notion that medical practices of all sizes are increasingly outsourcing their revenue cycle management. Doing so eliminates tedious, repetitive tasks for a medical practice and frees up more time for other needs.

Improvements in automation technology have been a significant driver of the outsourced medical billing market’s expansion. This automation can expedite in-house and outsourced billing procedures while minimizing errors. It is increasingly part and parcel of cloud-based medical billing software.

Artificial intelligence is a significant driver of automation technology – a recent example worth watching is Outbound AI’s generative AI. Through this tool, which leverages ChatGPT and other AI technologies, billing teams minimize the manual labor of EOB processing, denial management and prior authorizations.

At every step of the way, AI software will remain vital to medical billing in 2024. Its importance is only expected to grow as healthcare IT vendors introduce machine learning algorithms into their products. More automation – and more accurate billing – should result.

Medical billing software data security is expected to be a paramount concern in 2024. This is especially true in light of the medical billing service Arietis Health informing patients of a data breach in October 2023. Due to this breach, personal medical information and key identifiers such as Social Security Numbers may be for sale among bad actors. Additionally, a February 2024 suspected ransomware attack against Change Healthcare, a UnitedHealth Group unit, may further fuel security concerns. Medical billing services – and the practices that use them – will likely prioritize security improvements to avoid similar breaches.

Additionally, according to study data published in December 2023, only 38 percent of U.S. hospital systems met three key medical billing quality standards. These standards were hospital legal action to collect outstanding patient payments, timely delivery of itemized patient statements and patient access to qualified billing staffers. Given that 62 percent of hospitals did not meet at least one of these standards, expect a focus on these medical billing areas in 2024. Hospitals and smaller practices alike may need to prioritize these measures.

Present-day medical billing options also come with personalization tools so patients can receive statements and use customized payment collection tools. Patient payment plans are also becoming more common. Outsourced medical billing providers may thus be expected to prioritize a personalized patient billing experience in 2024.

There will likely be a focus on medical billing transparency as well in 2024. State legislation reflects this, such as a 2023 Texas law that requires clear written invoices before sending patients to collections. So too do consumer concerns such as those out of Colorado, where one patient reported a billing error affecting tens of thousands of people. This patient filed a complaint directly with the state government, leading to national reporting on the issue. This suggests a renewed interest in medical billing transparency throughout the country.

Attention on medical billing has also emerged in Minnesota. There, the state Attorney General’s Office is investigating the health systems Mayo Clinic and Allina Health. In particular, Minnesota Attorney General Keith Ellison has been hosting listening sessions to get public input on negative medical billing experiences. As government focus on medical billing expands, prioritizing a highly positive patient experience will become increasingly important in 2024.

Additionally, in 2024, medical practices can expect compliance changes based on the federal No Surprises Act that went into law in 2022. This law protects patients from incurring unexpected medical bills, but many physicians have argued that federal involvement in insurer-practice disputes violates the Act’s guidelines. In fact, between February 2022 and February 2023, two federal district court rulings invalidated certain parts of the Act.

The confusion doesn’t end there. In July 2023, federal executive agencies asked a district court to reverse a previous ruling invalidating part of the Act. Furthermore, by late November 2023, approximately 30 public businesses had labeled the Act as a risk. The Act continues to be contested. In April 2024, the American Medical Association’s Litigation Center filed an amicus brief with the 5th U.S. Circuit Court of Appeals.

The AMA has requested to uphold the federal court’s previous decision regarding the rule about how payers may calculate a physician’s rate of pay. The AMA reasons that this rule is in contrast to the law’s original intent.

These worries may have come to fruition as per the Biden administration’s February 2024 progress report. According to this report, the three federal agencies co-managing the Act are spending substantially more time enforcing it than predicted. Additionally, in more than 80 percent of Act-related disputes, insurers were ordered to pay more to out-of-network providers than they would to contracted providers.

Medical practice and billing service requirements may fluctuate as courts and influential businesses weigh in on the No Surprises Act to change its scope. This makes the No Surprises Act key to watch in 2024.