Free tool
What does your billing
really cost?
Put in your own numbers to see the monthly cost of running billing in-house, your cost per claim, and what unworked denials are costing you.
Your billing today
- Cost to run billing in-house
- $9,567 / month
- As a share of collections
- 8.0%
- Cost per claim
- $11
- Revenue left on the table from unworked denials
- $4,800 / month
- $57,600 a year · about 36 claims a month
Estimates from your inputs only. Lost revenue assumes an unworked denied claim is worth your average collected amount per claim ($133). Not every denial is recoverable.
Get a real assessment →How the calculation works
- Monthly billing cost = billing FTEs × yearly cost per FTE ÷ 12 + monthly software and clearinghouse costs.
- Cost as a share of collections = monthly billing cost ÷ monthly collections.
- Cost per claim = monthly billing cost ÷ claims per month.
- Revenue from unworked denials = claims × denial rate × share never reworked × average collected per claim.
Not sure of your denial rate? See how to calculate it, or read in-house billing vs outsourced RCM.
Frequently asked
Questions we hear a lot.
How do I calculate the cost of in-house medical billing?
Add the yearly cost of everyone who works on billing (salary, benefits, payroll taxes and overhead), divide by 12, and add your monthly software, clearinghouse and eligibility costs. Divide that by monthly collections to get billing cost as a share of collections.
How much revenue do unworked denials cost?
Multiply the number of claims you submit by your denial rate and by the share of denials nobody reworks. Multiply that by your average collected amount per claim for a rough monthly figure.
Is outsourcing medical billing cheaper?
It depends on your volume, specialty and how well your current process works. Compare your full in-house cost and the revenue lost to unworked denials and slow AR with the vendor's fee, and ask whether you keep visibility of every claim.
Want the real number?
Send us a month of claims data and we will show you exactly where revenue is leaking.