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Medical Billing Outsourcing Cost: Pricing Models Explained (2026)

June 5, 2026· 6 min read· Practice Finance

If you're evaluating outsourced medical billing, the first question is usually: what does it cost? The honest answer is that pricing varies by model. Here's how the three common models work and when each makes sense.

1. Percentage of collections

The most common model: you pay a percentage of what the billing company actually collects for you, typically in the range of 3–8% depending on volume and complexity. Its biggest advantage is alignment — the company only gets paid when you get paid. Lower percentages generally apply to higher monthly collections.

Best for: practices that want a fully managed billing department with incentives aligned to collections.

2. Per-seat (dedicated staffing)

Instead of a percentage, you pay a fixed monthly fee for one or more dedicated billing staff who work as an extension of your team. Costs are predictable and don't rise as your collections grow.

Best for: practices that want predictable costs, or a specific role (e.g., a senior A/R specialist) rather than a full department.

3. Hourly / per-task

You hire trained billing staff by the hour or for a defined project — useful for one-time A/R cleanups, coding audits, or scaling a billing company's capacity without platform fees.

Best for: billing companies, MSOs, and project-based needs.

How do you choose a model?

  • Want hands-off, results-aligned billing? Percentage of collections.
  • Want predictable monthly cost or a specific role? Per-seat.
  • Need surge capacity or a defined project? Hourly / per-task.

What to watch for in any contract

  • Hidden fees (setup, clearinghouse, statements, per-claim add-ons).
  • Long lock-in contracts with steep exit terms.
  • Unclear reporting — you should always see your own data.

Revyn offers all three models transparently, with no hidden fees. On percentage of collections, you only pay when we collect — and you can start with a free practice analysis before committing.

Frequently asked questions

Percentage-of-collections pricing commonly ranges from about 3% to 8% of monthly collections, with lower rates for higher volume. Revyn's percentage model runs from 3% to 5% depending on monthly collections.

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Get a free, no-obligation billing review. We'll analyze your denials and A/R and show you exactly where Revyn can help.