The true cost of medical billing

Medical billing is becoming increasingly complex, creating challenges for providers and patients. Many healthcare organizations are turning to AI-driven billing systems and outsourcing solutions to improve efficiency, reduce errors, and lower costs. Based on a survey of healthcare professionals and patients, this report explores the biggest billing challenges, how providers are addressing them, and key industry trends.

Some healthcare professionals are facing significant billing challenges that impact their practices' financial health and operational efficiency. To explore the current state of medical billing and emerging solutions, we surveyed healthcare providers about the obstacles they face and the technologies they're using to overcome these hurdles.

The medical billing industry is evolving rapidly, and technological advancements and regulatory requirements are taking center stage. Healthcare professionals predict these will be the top 5 trends for medical billing in 2025:

Private practices can ease billing challenges by using comprehensive EHR and billing software, along with AI and automation. These tools help reduce errors, cut administrative work, and improve accuracy — allowing providers to focus more on patient care.

Many healthcare practices weigh the costs and benefits of outsourcing billing to reduce administrative burdens and improve accuracy. Understanding freelance medical billing rates and how professionals perceive outsourcing can help practices make informed decisions about whether to keep billing in-house or seek external support.

When considering outsourcing, it's crucial for independent practices to evaluate the billing service's integration capabilities with existing EHR systems to ensure a smooth and efficient workflow.

Billing confusion adds to providers' administrative workload, from handling disputes to managing delayed payments. Many patients struggle to understand their bills, leading to unexpected costs and financial strain. As a result, some delay care or face difficult financial decisions. Clear, itemized statements, accurate coding, and automated billing systems can help reduce errors, improve transparency, and prevent disputes.

Modern billing software that provides detailed charge breakdowns and automates patient communication can help practices operate more efficiently while empowering patients to make informed decisions about their care. By improving transparency and reducing billing errors, these systems can also help build patient trust and minimize disputes over unexpected charges.

As medical billing grows more complex, healthcare professionals face challenges like claim denials and processing delays, which strain both finances and staff resources. To adapt, many are implementing AI-driven billing systems and outsourcing services — over half plan to adopt AI technology in the next two years, and more than a third expect to expand outsourcing. By increasing accuracy and reducing administrative burdens, these solutions free up staff to focus on what matters most: delivering quality patient care.

To gain a comprehensive understanding of the medical billing landscape, Tebra surveyed 800 Americans and 200 healthcare professionals. The survey explored patient experiences, common challenges, and professional perspectives on medical billing systems, highlighting key insights and areas of alignment or disparity between the two groups. Tebra also analyzed data from over 1,900 medical billing freelancers on Upwork, focusing on the most sought-after skills and average hourly rates in the freelance medical billing market. 

Tebra, headquartered in Southern California, empowers independent healthcare practices with cutting-edge AI and automation to drive growth, streamline care, and boost efficiency. Our all-in-one EHR and billing platform delivers everything you need to attract and engage your patients, including online scheduling, reputation management, and digital communications.