You won’t be able to generate an ample amount of revenue until you pay full attention to your billing. But when you are managing an entire mental health facility or even just providing healthcare it becomes a challenge to handle both aspects at a time. That’s why there are mental health billing services available that provide you a chance to outsource your billing and pay attention to what matters most: the patient’s health.
But you might think that these services are costly. Well, this is just an assumption. Worry not as we will show you the average cost of mental health billing solutions.
We will also compare the cost with in-house billing, which will help you realize which option to go for.
Want to optimize your medical billing? Have a look at the cost you have to pay for the services and rest assured.
4 Modes Of Charging Fees
When you get mental health billing services, there are 4 payment options you can expect. All these modes cater to both, small-sized and large mental health facilities so that they can pay according to their customized schedule.
Let’s have a look at these payment modes in detail:
1. Percentage of Revenue
In this method, you have to pay a specific percentage of the total revenue generated. It allows you to receive full mental health billing solutions along with paying after you earn, so it’s not a burden on your expenses.
The percentage is usually set by the service providers. But you can communicate with them to create a customized payment plan.
Best for:
- Facilities with fluctuating revenue
- Clinics prefer to pay in proportion to their income
- Organizations looking for a scalable solution as they grow
- Mental health practices with a steady stream of patients
2. Fees Per Claim
This is another payment option for the mental billing services in which you have to pay a set amount for each claim, in total. I.e if you submit 100 claims a day, multiply the set cost with each successful claim and that would be your charges.
For your ease, most companies charge for only those claims that are accepted. While other companies set a specific amount for claims depending on the amount of revenue.
Best for:
- Clinics with a high volume of small claims
- Facilities wanting predictable billing costs per processed claim
- Smaller practices with fewer but consistent claims
- Organizations aiming to manage costs by controlling the number of claims
Have a Small-Sized Facility?
3. Hourly Rate
In this mode, the payment will depend on how many hours of mental health billing services you are getting. It may vary depending on the need for hours per day as well as specific billing service requirements like only RCM, claim filing, or patient billing.
Best for:
- Clinics requiring occasional billing assistance
- Facilities with variable billing needs based on patient load
- Practices preferring to pay for actual time spent on billing tasks
- Mental health providers need detailed and time-intensive billing processes
4. Monthly Charges
This is the most common payment option for billing services. Here no matter how much services you get, you have to pay a fixed monthly amount.
The fees do not depend on the number of claims and patients handled per month. Instead, you will complete the contract, and irrespective of the revenue generated you have to pay them a specific amount.
Best for:
- Facilities looking for predictable monthly expenses
- Larger organizations with stable patient numbers and revenue
- Practices seeking comprehensive billing services with consistent support
- Clinics prefer an all-inclusive billing solution without worrying about per-claim or percentage-based fees
Different Mental Health Billing Services And Their Costs
In order to find the average cost of mental health billing solutions, you must know that every facility gets different services. Some might only want their revenue cycle to be managed while some want total attention dedicated to the claim submissions.
So here we are listing all the mental health billing services and the cost for each. Based on what services you need for your facility, you can find an estimated cost.
Patient Eligibility Verification
Making sure that a patient is eligible for specific medical services before beginning the treatment.
Average Cost: $5 – $15 per verification
Claim Submission
Preparing and submitting accurate claims before the deadline. The service providers keep in mind payer requirements which results in an increased claim approval rate.
Average Cost: $3 – $10 per claim
Payment Posting
Recording the amount received from insurance payers and patients in the facility system.
Average Cost: $0.50 – $2 per transaction
Denial Management
Identifying the reason for denied claims, removing the errors for resubmitting, and recording the status of each claim.
Average Cost: $15 – $25 per denial
AR Follow-up
Tracking unpaid claims and bills and communicating with the patients and providers to ensure timely payment.
Average Cost: $30 – $50 per hour
Patient Billing and Statements
Generating and sending bills to the patient and managing patient relationships to resolve their queries.
Average Cost: $1 – $3 per statement
Credentialing Services
Assistance in mental healthcare provider credentialing for the insurance companies because it is a basic requirement to be able to bill them. Mental health billing services also help you with supplier credentialing so that you meet all healthcare industry standards like HIPAA.
Average Cost: $200 – $500 per provider
Reporting and Analytics
Providing regular reports on mental health billing performance for effective decision-making.
Average Cost: $100 – $300 per month
Consultation and Training
They also offer training to the facility’s staff to make them experts in handling medical billing to optimize cash flow.
Average Cost: $100 – $250 per hour
In-house vs Outsourced Billing Cost
When you learn the average cost of mental health billing services, you might think that you should go for in-house billing. This might seem less expensive but when we compare the in-house vs outsourced billing, external billing assistance seems more helpful and time and cost-saving than in-house which requires constant input from your facility’s staff.
Here is a comparison between the 2 options to help you understand which one is actually a good option:
| Aspect | In-House Billing | Outsourced Billing |
| Personnel Expenses | $40,000 – $60,000 per year per employee + 20-30% for benefits | N/A |
| Training and Development | Initial: $1,000 – $3,000, Ongoing: $500 – $1,500 per year | N/A |
| Software and Technology | $3,000 – $10,000 per year, Maintenance: $1,000 – $3,000 annually | Included in service fee |
| Administrative Overheads | Office Space, Utilities, Supplies: Varies, typically a few thousand annually | Included in service fee |
| Miscellaneous Costs | $1,000 – $2,000 per year (printing, postage, phone charges) | Included in service fee |
| Hidden Costs | Errors and Denials: Potentially significant but hard to quantify | Minimal, more predictable costs |
| Fees | N/A | Percentage of collections: 4% – 10%, Per claim: $4 – $10 |
| Additional Services | N/A | Optional features may incur extra costs but usually bundled |
| Control | Direct control over billing processes | Less direct control |
| Expertise | Requires continuous training and updates | Access to specialized expertise |
| Administrative Burden | High | Reduced |
| Predictability of Costs | Lower due to hidden costs and errors | Higher, more predictable |
| Focus | Split between billing and clinical activities | More focus on clinical activities |
Save on Billing Costs
Based on our evaluation, mental health billing services cost from $1,600 to $7,000 per month which is comparatively less than what you might be spending internally.
So why risk your revenue when you can get assistance in terms of mental health billing solutions and save your cost on unnecessary expenditures?
Go for a suitable billing company for your facility and see your revenue rise.
