Medical billing pricing is usually quoted as a percentage of collections, a flat monthly fee, or a hybrid — but the headline number means little until you know what it covers and how it is calculated. This page explains how Medical Billing Services Group (MBSG) structures medical billing pricing, what to ask before signing with any billing company, and how our fees are defined in plain arithmetic.
A direct answer: MBSG’s pricing model is confirmed at contracting and quoted per practice after a review of your specialty, volume, and needs. Most medical billing pricing in the industry is a percentage of net collections or a flat monthly fee; what matters more than the model is the denominator, the inclusions, the minimums, and the cancellation terms — all covered below.
Want numbers for your practice? Get a Free Billing Audit — it includes a pricing conversation based on your actual data. Or contact us for a quote.
Our Pricing Model
Our pricing model is confirmed at contracting — we don’t publish a one-size rate because the right structure depends on your specialty, volume, payer mix, and services needed. Engagements generally take one of three shapes: a percentage of collections, a flat monthly fee, or a hybrid base fee plus performance component. Which shape fits is decided during scoping, after we review your data — not before. Every proposal states the model, the rate or fee, exactly what is included, and the contract terms in writing. A rate quoted without reviewing your billing data first is a warning sign, from us or anyone.
Inclusions and Exclusions
A quote is only comparable when you know what it buys. Confirm these points in writing for our proposal or any competitor’s:
Typically included in a full-service engagement: electronic claim submission and clearinghouse management; denial identification and follow-up; payment posting and reconciliation; patient statement workflows; standard reporting (collections, A/R aging, denial trends). Exact inclusions are defined per engagement.
Commonly excluded or separately priced: credentialing and payer enrollment (credentialing and payer enrollment); legacy A/R cleanup; coding audits beyond routine claim support; legal or compliance advice. Third-party software, clearinghouse, and enrollment fees are passed through or paid directly by the practice.
Ask every vendor: “What exactly is not included?” The cheapest quote is often the one with the longest exclusions list.
Minimums, Setup, Software, Clearinghouse, Credentialing, and Legacy A/R Fees
Beyond the headline rate, these line items determine what you actually pay. Where our specifics aren’t yet published, we tell you exactly what to ask.
- Monthly minimums. Many billing companies set a minimum monthly fee so small practices don’t cost more to serve than they generate. Our minimums are quoted with your proposal. Ask whether the minimum is waived during ramp-up, and whether it applies per location or per tax ID.
- Setup and onboarding fees. Data migration, configuration, enrollment remediation, and workflow setup take real work. Our setup fees are itemized in your proposal. Ask what setup includes, how long onboarding takes, and whether any portion is refundable.
- Software fees. Practice management and EHR licenses are typically your own contracts, paid directly to the vendor; we work with the systems you already use. Ask whether the billing company requires a system switch, and who pays for required add-ons.
- Clearinghouse fees. Clearinghouse transaction or enrollment fees, where they exist, are between you and the clearinghouse (see our clearinghouse services). Ask whether clearinghouse costs are bundled into the rate or billed separately.
- Credentialing fees. Payer enrollment and credentialing are commonly priced per provider or per payer. Ask whether credentialing is included, priced per application, or excluded.
- Legacy A/R fees. Balances predating the engagement often need separate cleanup, sometimes at a different rate. Ask how legacy A/R is defined — balances older than how many days? — and whether cleanup is included or quoted separately.
Contract terms governing all of the above are set out in your services agreement.
How Fees Are Calculated
For percentage-of-collections pricing, the contract’s most important definition is the denominator — what counts as “collections.” Ours, in plain arithmetic:
Collections = payments received by the practice, net of refunds and contractual adjustments.
Take every payment received in the period — insurance and, where applicable, patient payments — then subtract (1) refunds issued to payers or patients and (2) contractual adjustments (billed charges minus the payer’s allowed amount). The fee is the contracted rate times that net figure. Whether patient collections are included is contract-defined — stated explicitly in each agreement, as you should require of any vendor.
What “collections” does not include: billed charges, which inflate the base; or bad-debt write-offs the practice elects to take. This definition aligns incentives — we earn more only when you collect more.
A Clearly Hypothetical Worked Example
Clearly hypothetical — illustrative arithmetic only, not MBSG’s rates. Suppose the contracted rate were 6% and a month’s net collections (as defined above) were $120,000. The fee would be:
0.06 × $120,000 = $7,200
Again: 6% and $120,000 are illustrative numbers chosen to show the arithmetic — not MBSG’s rates, and nothing here is a quote. Actual rates are quoted per practice after we review your specialty, volume, payer mix, and scope.
Contracts and Cancellation
Contract terms — initial term, renewal, termination notice, and early-termination provisions — are set out in each agreement. Before signing with any billing company, confirm: the notice required to cancel, what happens to in-flight claims during transition, how your data is returned, and whether any fees survive termination. We put data-return and transition terms in writing — a billing relationship should be easy to leave.
If you’re a smaller practice, see medical billing for small practices — and compare our revenue cycle management and outsourced medical billing descriptions so your quote maps to work you actually need.
Frequently Asked Questions
How much does medical billing cost?
It depends on specialty, volume, payer mix, and scope — which is why honest billing companies quote per practice. Our model is confirmed at contracting; the sections above explain every factor so you can evaluate any quote, ours included.
Is percentage-of-collections or flat-fee pricing better?
Neither is universally better. Percentage pricing aligns incentives with your collections but can cost more as you grow; flat fees are predictable but can misalign incentives if mispriced. We recommend the structure that fits during scoping and put the reasoning in the proposal.
Are there setup fees?
Setup — data migration, configuration, enrollment remediation — is real work accounted for somewhere. Our proposals itemize setup separately from recurring fees.
What happens to my data if I cancel?
Data return and transition assistance are in the contract. Before signing with any vendor, confirm in writing: how your data comes back, in what format, and who works in-flight claims during transition.
Do you require long-term contracts?
Contract terms are set per agreement. Ask any billing company — including us — for the shortest initial term offered, so the relationship is earned rather than locked in.