Published on: 02/07/2025
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Managing a dental practice involves more than patient care; it also means staying on top of billing, insurance claims, and accounts receivable. For many clinics, outsourcing this task to a professional billing service is the smartest move. But there’s one question that every dental practice owner wants answered:
How much do dental billing companies charge?
The answer isn’t as straightforward as a fixed price. It depends on several factors, including your practice size, volume of claims, and the type of billing model you choose. In this blog, we’ll break down everything you need to know from the most common dental billing models to cost influences and how to choose the right pricing plan for your practice.
If you’re planning to hire a dental billing company, one of the first things you’ll want to know is how much it’s going to cost. In 2025, most dental billing companies will charge anywhere between $1,000 to $5,000 per month, or around 4% to 10% of your monthly collections. The exact amount depends on a few things like the size of your clinic, the number of insurance claims you handle every month, and the kind of services you need. These dental billing expenses can vary widely based on practice needs and location.
Smaller dental clinics usually end up paying around $800 to $1,500 each month. If you run a mid-sized clinic, your monthly cost may fall somewhere between $1,500 and $3,500. Larger clinics with more patients and higher billing volumes may pay $3,500 or more each month. These are just average ranges, and your cost can change based on how much work is involved.
Where your clinic is located also makes a difference. If you’re in a big city, billing companies may charge more because their own costs are higher.
The price can also change based on the services you need. If you only want help with sending claims, the cost will be lower. But if you also want help with checking insurance, following up on unpaid bills, handling denied claims, or sending patient statements, then the cost will be higher. Some companies also charge extra if they need to set up or connect with your clinic’s software.
To know the exact cost, it’s best to talk to a few companies and ask for a quote. Make sure you understand what is included in the price. Some companies may look cheaper at first but charge extra for certain tasks. It’s always a good idea to compare not just the price, but also the value you’re getting. Picking the right billing company can save you time, reduce stress, and help your clinic get paid faster.
Dental billing companies usually offer different pricing models to suit varying needs. Choosing the right one can impact not just your expenses but also how efficiently your billing is handled. Dental billing prices vary depending on which model you choose, so it’s important to pick one that aligns with your clinic’s operations.
Here are five popular types of billing models used in the dental industry :
This is one of the most common models. The dental billing company takes a percentage of your monthly collections typically between 4% to 10%. This model aligns the billing company’s earnings with your practice’s revenue. The more they help you collect, the more they earn.
> Ideal for: Medium to large practices with steady patient flow.
In this model, you pay a fixed monthly amount for billing services, regardless of your collections. For example, a practice may pay $1,500/month for comprehensive billing support.
> Ideal for: Small practices with predictable billing needs.
Here, you’re charged based on the number of claims submitted e.g., $5 to $10 per claim. It’s straightforward but can add up if you’re handling a high claim volume.
> Ideal for: Practices with low insurance dependency or seasonal patient spikes.
Some companies offer hourly billing charging you for the actual time spent handling your account. Rates usually range between $25 to $75/hour.
> Ideal for: Clinics that only need occasional support or auditing.
A mix of percentage and flat fee. For instance, a dental billing company may charge a lower flat rate plus a small percentage of collections above a certain threshold.
> Ideal for: Practices that want predictability but with room to scale.
Let’s look at the main things that affect how much you’ll pay for dental billing services. These can change depending on your clinic’s needs and setup.
If you run a big dental clinic with lots of patients, you’ll have more claims to process. This means more work for the billing team, which leads to higher costs. Smaller clinics usually pay less because they have fewer claims.
Some dental treatments need extra paperwork or special codes. These kinds of claims take more time and effort, so they cost more to handle. Simple, routine claims are faster and cheaper to process.
If you only need help with sending insurance claims, you’ll pay less. But if you want full support like checking patient insurance, following up on payments, handling denied claims, and sending bills to patients then the cost will be higher.
Some dental billing companies connect directly to your clinic’s software. This makes things faster and smoother. But setting this up might cost extra, especially if the system needs custom work.
Where your clinic is located also matters. If you’re in a big city, billing services might cost more because of higher living and business costs. In smaller towns or less busy areas, prices may be lower.
The more services you want, the more you’ll pay. A basic package might only include claim submission. But if you add things like insurance checks, patient billing, reports, and payment follow-ups, your monthly cost will go up.
Before you choose a pricing model, it’s important to understand what services you’re actually paying for. Most full-service dental billing companies offer a wide range of support to help keep your finances on track and your payments coming in smoothly.
One of the first services they provide is insurance verification. This means checking a patient’s insurance before the treatment starts, to make sure they’re eligible and to avoid claim rejections later.
Next is claims submission, where the company sends out your insurance claims quickly and accurately. This helps you get paid faster and reduces the chances of mistakes.
They also handle claim follow-ups. If a claim hasn’t been paid or gets rejected, the billing team follows up with the insurance company to fix the issue and resubmit it if needed.
If a claim is denied, they take care of appeals and denials management. This includes reviewing the denial, finding the cause, and working to get it approved.
Another important task is accounts receivable (AR) management. This involves tracking unpaid bills, whether from patients or insurance, and making sure that money doesn’t get lost or forgotten.
Patient billing is also included. This means sending bills to patients, answering their questions, and helping with payments.
Finally, many billing companies offer reporting and insights. They give you regular updates like weekly or monthly reports showing how much you’ve collected, what’s still pending, and where you can improve.
All of these services add to your overall dental billing cost, so it’s a good idea to ask for a clear list of what’s included when you’re comparing companies.
The cost of dental billing services depends on how much help your clinic needs and how many claims you handle. Every practice is different, so prices can vary.
While it may seem like an extra expense, outsourcing often saves time, reduces mistakes, and helps you get paid faster. It also takes the pressure off your team and keeps things running smoothly.
What matters most is the value it brings. A good billing partner can improve your cash flow and let you focus more on your patients.
Not always. Even though it may seem like a big cost at first, outsourcing can actually save money. It helps you get paid faster, reduces billing mistakes, and saves your team a lot of time.
Yes, you can. Most dental billing companies let you choose what you need. You can go for full support or just pick a few things like claim submission or patient billing.
Look for a company that is clear about its pricing and services. Make sure they have experience in dental billing and good reviews. It’s also helpful to ask for a short trial or demo before you decide.
