How to Choose a Medical Billing Company
By MedPrecision Editorial Team · Published
Selecting a medical billing company is a decision that directly impacts your practice's financial health. With hundreds of billing companies to choose from, knowing what to evaluate and what questions to ask helps you find a partner that delivers real results.
Key Criteria for Evaluating Billing Companies
When evaluating medical billing companies, focus on these critical factors: specialty experience relevant to your practice, technology capabilities and EHR integration, transparency in reporting and communication, client references and retention rates, compliance and security certifications, pricing structure and what is included, and the qualifications of their coding and billing staff. A company that excels in all these areas is likely to deliver strong results.
Questions to Ask During the Evaluation
Ask prospective billing companies these questions: What is your average clean claim rate and denial rate? How many clients in my specialty do you serve? What certifications do your coders hold? How do you handle denied claims and what is your appeal success rate? What reporting will I receive and how often? How do you handle the transition from my current system? What are your data security and HIPAA compliance measures? What is your staff turnover rate? The quality and specificity of their answers reveals their level of expertise.
Red Flags to Watch For
Be cautious of billing companies that require long-term contracts without performance guarantees, cannot provide specific performance metrics for existing clients, lack certified coders or specialty-specific experience, offer pricing that seems too good to be true, are evasive about their technology or processes, have no clear onboarding or transition plan, and cannot provide references from practices similar to yours. These red flags often indicate a company that will not deliver on its promises.
The Onboarding Process
A professional billing company should have a structured onboarding process that includes a thorough practice assessment, clear timeline with milestones, data migration and system integration planning, staff training on new workflows, a parallel running period to ensure no claims are missed, and a dedicated implementation manager. MedPrecision's onboarding process is designed to minimize disruption and maximize results from day one.
Setting Expectations and Measuring Success
Before signing with a billing company, agree on key performance indicators including clean claim rate target, denial rate target, days-in-A/R target, net collection rate target, and reporting frequency and format. These benchmarks create accountability and provide objective criteria for evaluating performance over time.
Common Questions
Common questions about how to choose a medical billing company.
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Get a Free Billing Audit arrow_forwardHow long should I give a new billing company to show results?
You should see measurable improvement in key metrics within 60-90 days. Full improvement typically takes 4-6 months as the billing team learns your practice's patterns and refines processes.
Should I choose a local or national billing company?
Location matters less than expertise. A national company with specialty experience and strong technology often outperforms a local generalist. Focus on capabilities, references, and cultural fit rather than geographic proximity.
What pricing model is best for medical billing services?
Percentage-of-collections models align the billing company's incentives with yours because they only earn more when you collect more. Flat-fee or per-claim models can work for high-volume practices. Avoid companies that charge both a percentage and additional fees for basic services.
Can I switch billing companies if I am not satisfied?
Yes, and a reputable billing company will facilitate a smooth transition. MedPrecision offers flexible terms and helps practices transition without disruption, whether they are coming from another company or from in-house billing.
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