Dental billing is a complex and time-consuming process. That’s why many dentists choose to outsource this task to a third party. But how much does outsourced dental billing cost? And what should you look for when choosing a company to handle your billing needs? In this comprehensive guide, we will answer all of your questions about outsourced dental billing!

The cost of outsourced dental billing varies depending on the size of your practice, the number of patients you see, and the complexity of your billing needs. Generally speaking, you can expect to pay between $500 and $2000 per month for outsourced dental billing services – it depends on the services you have subscribed to. If you choose to outsource, you should look for dental insurance billing companies that have experience dealing with insurance companies and knows how to get claims paid quickly because you want your bills being handled correctly. You’ll also need good customer service, so make sure the business offers it before committing!

What is Outsourcing Dental Billing?

Outsourcing dental billing refers to the process of contracting an outside company or individual to handle all aspects of your dental office’s billing and coding. This can include everything from patient insurance verification and claims processing to collections. There are many benefits to outsourcing your dental billing, including freeing up time for you and your staff to focus on patient care, reducing overhead costs, and improving your practice’s bottom line. However, one of the most common questions we get asked is: “How much does outsourcing dental billing cost?” Unfortunately, there is no one-size-fits-all answer to this question as pricing will vary depending on a number of factors, including the size of your practice, the complexity of your billing, and the services you require. However, we’ve put together a comprehensive guide to give you an idea of what you can expect to pay for outsourcing your dental billing.

What is in-House Dental Billing?

In-house dental billing is when a dental practice bills dental insurance companies directly. This is opposed to using a dental billing company, where the dental practice would instead send their claims to the dental billing company. The dental billing company would then handle all of the follow-up and collections for the dental practice. It is better to outsource the dental billing to the dental billing companies as their staff is experienced in maximizing account receivables and contesting the denied claims in a professional manner.

Comparison Between Outsourcing and in-House Dental Billing

When it comes to dental billing for dummies, you have two options: outsourcing or handling the billing in-house. So, which is the better option for your practice? Here’s a comparison of the two so that you can make an informed decision:


– Generally costs between $500 and $2000 per month

– Can be more efficient because you’re working with experts who know how to get claims paid quickly

– Allows you to focus on other aspects of your practice

– Can be a good option if you don’t have the time or resources to handle billing in-house

In-House Billing:

– Requires you to hire one or more employees to handle the billing process

– Gives you more control over the billing process if the staff is up-to-date

– Takes away from time that you could be spending seeing patients or working on other aspects of your practice

In-house W2 employees can incur overhead costs over their salary rate.  These costs include payroll taxes, employee benefits, and office space. When you factor in these additional costs, in-house billing is often more expensive than outsourcing.

Outsourcing earns you peace of mind and a lot more free time to focus on your practice because you can be confident that your claims will be handled quickly and correctly.

Finally, it’s important to consider the level of control you want over the billing process. If you prefer to have more control over how your bills are processed, then in-house billing may be the best option for you. However, if you’re looking for a hassle-free solution that will allow you to focus on other things, then outsourcing is the way to go.

Factors Affecting Outsourced Billing Costs

Dental billing outsourcing is a common choice for dental practices seeking to cut expenses and increase efficiency. On the other hand, the cost of outsourcing dental billing can differ significantly based on various variables. Some of the variables that can influence outsourced dentistry invoicing expenses are as follows:

1. Service complexity: Dental offices that provide various services may have more complicated billing standards. As a result, the external billing firm may need to spend more time and resources in managing the billing, which may result in higher outsourcing costs.

2. Volume of billing: The amount required can also affect outsourced dental billing costs. Practices with high volumes of billing may be able to negotiate lower rates with the external billing company. In contrast, practices with lower billing volumes may need to pay more per claim processed.

3. Size of the practice: The scale of the business can also have an impact on outsourced dentistry billing expenses. Smaller firms may have less negotiating power and thus pay higher prices. Furthermore, lesser practices may necessitate more modification and personalization, resulting in higher outsourcing costs.

4. Level of service provided: The quality of service offered by the external billing firm can also impact the cost. Practices that require more individualized and hands-on support may be required to pay a higher fee for these services.

5. Geographic location: The cost is also affected by the site of the external invoicing firm. Outsourcing practices that use businesses in high-cost areas may pay more for services.

6. Quality of service: The level of service the external billing firm offers can impact the expense. Companies that value high-quality service may have to spend more for it.

Benefits of Outsourced Dental Billing

Outsourcing dental accounting can provide several advantages to a dental office. The following are some of the primary benefits of delegating dentistry billing:

1. Cost savings: One of the primary advantages of delegating dentistry invoicing is the ability to save money. Outsourcing removes the need for a specialized billing staff, which can be costly to recruit and educate. Furthermore, the external billing firm usually charges a fraction of the total income received, so expenses are directly proportional to collections. This can assist dentistry offices in saving money and increasing profitability.

2. Enhanced efficiency: Outsourcing dentistry billing can help boost productivity. External billing firms generally have more experience and skill in dental billing, allowing them to handle claims more swiftly and correctly. Outsourcing also removes the need for costly billing software and hardware, further improving productivity.

3. Access to specialized knowledge: By outsourcing dental billing, dental offices can access technical expertise. External billing firms usually employ specialists in dental billing laws and best practices. This can assist in ensuring compliance with all pertinent laws and rules and avoiding costly errors.

4. Less administrative burden: Dental accounting can be a time-consuming and complicated job requiring significant organizational resources. Outsourcing dental accounting can help alleviate this load, enabling dentists to concentrate on delivering high-quality patient treatment and other essential duties.

5. Improved cash flow: Lastly, outsourcing dental invoicing can help dental offices improve their cash flow. External billing firms typically employ sophisticated tools and processes to monitor claims and ensure prompt payment. This can assist in receiving money faster and improving their general financial flow.


If you have a larger practice or complex billing needs, then outsourcing is the way to go. In-house billing may seem less expensive upfront but can be more costly in the long run if you have a large practice. Whichever option you choose, make sure that you do your research and choose a company that will meet your specific needs.