The Average Mental Health Billing Services Cost To Expect

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

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.