Are medical billing companies profitable
Medical billing companies are profitable. If they were not, then no one would start a medical billing company. The reason why medical billing companies are profitable is because they charge a percentage of the money they collect from the insurance companies.
For example, if you had an average bill of $100 and your billing company charged 10% of what they collected, then they would automatically make $10 for every claim that was paid by insurance.
This means that if you have 100 claims, then you can make $1,000 just for sending out bills and collecting money.
While this may sound like a lot of money, keep in mind that many people do not pay their bills so there will be some expenses associated with collecting money such as postage, phone calls, printing costs etc.. These expenses must be factored into how much money you will end up making per claim so keep an eye on these costs before deciding whether or not to start up your own medical billing company