Compare scope before comparing price
There is no useful price comparison until you know what each proposal includes and how its fee is calculated. Compare the same scope, period, volume assumptions, and contract terms—not just the headline percentage or monthly amount.
Ask each provider to define the calculation base in writing. Is the fee based on a stated portion of collections, claim volume, a flat period, or another measure? Which activities are included? Ask how the proposal handles denials, underpayments, corrected claims, older accounts, patient balances, reporting, and payer follow-up. Clarify which work remains with the practice.
Identify fees and responsibilities outside the quote
Confirm whether setup, integrations, statement services, patient collections, or specialized payer workflows are included or priced separately. These are questions to verify in the actual proposal, not assumptions about what every billing company charges.
Compare service ownership and communication expectations as well as the fee. Ask who handles exceptions, how unresolved work is reported, what happens during transition, and what minimum or termination terms apply. If older accounts are excluded, establish who will work them and how the work will be measured.
Make two proposals comparable
Use the same time period and a like-for-like description of the work. Ask for a sample report and a written service schedule. Estimate the practice’s retained staff work and any separate charges using its own records; avoid relying on an industry “standard” unless the benchmark defines its source, scope, and date.
Then compare the effective operating fit: what the practice pays, what work it receives, and what responsibilities it keeps. A lower quote is not automatically lower total cost if tasks remain with staff or are billed separately; a broader quote is not more valuable unless the practice needs and receives that work.
For a fuller vendor-evaluation checklist, see how to evaluate a physical therapy billing company.