Amidst your dental practice revenue cycle management process, considering cost is a significant factor along with the quest for financial clarity and efficiency associated with dental billing service companies expertise. Optimizing revenue for professionals and streamlining administrative tasks are among the leading causes for dentists to outsource dental billing. However, understanding its financial implications influencing the practices is essential to attain its fuller, such as the varying pricing structure and the services offered against the cost you are paying by hiring dental billing experts. For example, the price varies as per the size and volume of claims processing, the equipment and technology used, and the complexity of your practice's billing requirements. Moreover, dentists must ensure keeping informed with the shifting trends in the market toward more customizable pricing models in dentistry billing. Because the dental practice demands vary, so does the industry's commitment to providing tailored solutions that can cater to the user's unique expectations, including pricing structures based on the percentage of collections, predetermined monthly fee tiers, or a combination of both with flexibility to accommodate the dynamic nature of dental practice RCM. This comprehensive guide is designed to help you choose the best among the average costs of dental billing services and factors differentiating the pricing.
Outsourcing dental billing refers to contracting dental insurance services to an outside agency. Upon
signing a contract with a dental billing company, they assign billing experts to handle your dental
insurance billing by working regularly.
Proper dental practice management, including dental care, administrative tasks, billing, and claims
processing, is manageable for minor or extended dental care practices. Hence, the purpose for which
dental practices need RCM companies is to streamline the complex process by receiving productive dental
billing solutions and help your team innovate and explore the options to improve the problem areas. The
most common reasons why your practice may need an expert partner for understanding and overcoming the
many challenges occurring in the process are:
To improve the efficiency and productivity of the process, the dental billing outsourcing companies offer comprehensive solutions to eliminate practice errors and billing pitfalls, such as eligibility verification, claims processing, and AR follow-ups, along with various other benefits, including:
Following are some of the standard services that the best dental billing companies offer in the process:
Among the various factors affecting the cost of dental billing RCM, the insurance revenue the company receives each month determines the amount of your dental RCM services for the claims handled. However, you must ensure that you compare the cost of hiring a full-service RCM company or an in-house billing team member.
| Insurance Revenue Collection | Maximum Monthly Cost for Billing |
|---|---|
| Under $40k Collected | $1, 350/month |
| $40k to $100k collected | 3.5% of your collections, maximum $3,500/month |
| $100k up to $150k collected | $3,500 plus 3% of the amount over $100k, maximum $5,000/month |
| $150k up to $200k collected | $5,000 plus 2.5% of the amount over $150k, maximum $6,250/month |
| $200k up to $500k collected | $7,500 plus 2% of the amount over $200k, maximum $12,250/month |
According to Glassdoor reports of September 2023, the estimated total pay for a dental insurance
coordinator is $67,493 per year in the United States area, with an average salary of $54 113 per year.
The numbers represent the median, as the midpoint ranges from our proprietary Total Pay Estimate model
and is based on wages collected from our users.
A recent survey on dental salary reports shows that the average salary of a dental office insurance
coordinator is $22/hour. Hiring an in-house W2 employee can cost you between $45,760 and $64,064 yearly
per the benefits included.
Overhead expenses for internal W2 workers exist in addition to their hourly or pay rates. W2 workers
typically cost 1.25 to 1.4 times any organization's base salary range. Employer taxes, including social
security, Medicare, workers' compensation insurance, state and federal unemployment, payroll expenses,
and any perks you may provide, are all included in this additional salary.
Considering the compensation between 25% to 40% higher than the employee’s base salary, your average
dental insurance coordinator will cost $57,200 per year without benefits. However, the calculation will
include any bonuses achieved by the employee.
Service Package and Scope - The services determine the charges included in the RCM
package, such as claims processing, payment posting, denial management, and patient billing.
The Size and Volume of Practice - Larger dental practices with higher transaction
volumes may incur higher charges due to the increased complexity and workload.
Automation and Technology - RCM companies utilizing advanced technology and automation
tools may charge differently. Automated processes can also affect efficiency and, in turn, pricing.
Customization and Specialty Requirements - Practices with specific billing needs or
those offering specialized dental services may require personalized solutions that also affect the cost.
Percentage-based or Flat-Fee Pricing - RCM companies may charge a percentage of the
revenue they collect or a flat fee per transaction. The pricing model can significantly influence the
entire cost of dental billing services.
Compliance and Quality of Service - RCM companies prioritizing compliance with
healthcare regulations and consistently delivering high-quality may charge higher fees.
Contract Terms and Duration - The agreed-upon length and terms can also affect the
pricing structure. Long-term contracts may offer discounts compared to shorter-term agreements.
Additional Fees - Some RCM companies may charge additional fees for extra services such
as software, licensing, or handling specific types of claims or billing scenarios.
Considering the cost is an inevitable factor while optimizing your dental practice revenue. However, partnering with experts like MedsDental billing will pose several efficient options at manageable costs and help you easily handle intricate tasks such as:
Always thoroughly research various factors affecting the cost of dental billing services, reach out to multiple RCM service providers, discuss your needs, and request detailed quotes. Prices can vary, so it’s essential to consider the overall value and services provided when comparing dental RCM companies.
© MedsDental. All rights reserved 2024. Powered by MeshSq.