How Much Does It Cost to Build a Custom Medical Billing Software
The healthcare industry is continuously evolving as the need for precise and affordable medical facilities is more important than ever. As healthcare providers seek to improve patient care, cost management, and operational efficiency, the demand for precise medical billing software is also increasing. Furthermore, healthcare providers are working to refine their operations to improve the administrative burden as well as cash flow.
Almost 80 percent of healthcare providers have shifted to digital billing in the past few years, showing that medical billing software has become necessary for healthcare facilities in any country.
According to research, the global medical billing software market is estimated to reach $52.57 billion by 2035. The medical billing market, dominated by North America, is expected to grow at a CAGR of 10.21 % during the 2025 to 2035 forecast period.
The market for medical billing software will continue to grow due to the rise in telemedicine and remote healthcare services. In addition, the need for cloud-based solutions, compliance requirements, and automated billing also contributes to the rising demand for medical billing solutions.
However, any software works best when customized to the operational needs of a business. Custom software costs are higher than standard solutions available in the market. In this blog, we will discuss the cost of building a custom medical billing software.
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Cost To Build Medical Billing Software
There are a plethora of factors that affect the total cost of medical billing software development. Things like features, the platform, location of the team, their expertise, experience, and hourly rates. A lump sum cost for a medical billing software can be anywhere between $30,000 and $200,000.
It is usually difficult to calculate or provide an exact price or cost for building a medical billing software without considering the determining factors or a thorough analysis of the project. However, here is a rough estimate of the project based on the market analysis.
Basic Medical Billing Software Cost
A basic software or application with only the necessary features, such as billing, patient information management, and generation of claims, can cost you anything between $30,000 and $55,000.
Mid-Range Medical Billing Software
Cloud medical billing software with features like insurance eligibility verification, rejection handling, improved reporting capabilities, and connectivity with EHR/EMR systems may cost anywhere from $55,000 to $100,000 for middle-range medical billing software.
Advanced Medical Billing Software
The price of a web-based medical billing program with sophisticated features like machine learning, predictive analytics, custom integrations, and security measures may be anywhere between $70,000 and $200,000.
These are merely approximations derived from several surveys. For a more thorough discussion of your needs and an estimate of medical billing software development cost based on the specific requirements of your project, it is advisable to speak with a custom healthcare software development company.
Here is the description of the medical billing software cost for every step in the development process.
| Component | Description | Estimated Cost |
| Requirement Analysis and Planning | Gathering requirements, compliance checks (e.g., HIPAA), system design blueprint | $3,000 – $10,000 |
| UI/UX Design | Wireframes, mockups, user interface design tailored for medical use | $5,000 – $15,000 |
| Frontend Development | Building the user-facing part of the software (dashboards, forms, etc.) | $10,000 – $25,000 |
| Backend Development | Server-side logic, APIs, integration with databases, claim processing logic | $15,000 – $40,000 |
| Database Design & Management | Patient records, billing data storage, access control | $5,000 – $15,000 |
| Third Party Integrations | EHR/EMR systems, clearinghouses, payment gateways, insurance databases | $5,000 – $20,000 |
| Compliance and Security | HIPAA, HL7, data encryption, access logs, secure authentication | $5,000 – $15,000 |
| Testing and Quality Assurance | Functional, performance, security testing, bug fixing | $5,000 – $15,000 |
| Deployment and DevOps | Cloud setup, CI/CD, server configuration | $5,000 – $10,000 |
| Maintenance and Support | Updates, bug fixes, and user support | $10,000 – $30,000 (yearly) |
| Total Estimated Cost | Varies as per the complexity and features | $68,000 – $192,000 + |
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Factors Affecting Cost of Medical Billing Software
The medical billing software development cost depends on several factors. Every factor has an impact on the price of development. Let's dive deeper into these factors and how they influence the cost of software.
Feature Complexity
The complexity of medical billing software features significantly affects costs. More advanced functions like real time patient eligibility verification and detailed reporting required developers to code and test extensively, that requires them to work for more hours than standard coding. Therefore, the more complex the features required, the higher the cost of custom software development.
Customization
The level of customization required to align the solution with specific requirements for medical billing software and workflows impacts the cost significantly. Customizing the software to fit accurately in the operational framework of a healthcare facility enhances the complexity of the solution and development hours. Therefore, the more customization is required, the more expensive the required software will be.
Software Integration
Integration with your existing systems, such as Electronic health records or electronic medical records, can add to more work for developers, which ultimately increases the working hours and cost. While a convenient exchange of data is important, it often requires planning, special coding, and additional human effort, which adds to the cost of development.
Scalability Demand
While developing scalable software might seem like an upfront investment, it can save you money later. A scalable software can accommodate new users and adapt to growing demands without the need for additional development work. However, building a scalable solution from the beginning increases the cost of development. So, you need to be sure about the future growth of your business so that it can be considered while developing the solution.
Data Security
It is crucial for healthcare software development services to guarantee strong data security measures, including encryption, access controls, and adherence to security standards. These precautions are essential for safeguarding patient data, but they also raise development costs.
Regulatory Compliance
Every healthcare solution needs to comply with industry regulations, especially HIPAA. The medical billing software you are looking to develop also needs to comply with healthcare compliance standards. Now, maintaining compliance during software development requires expertise, rigorous testing, and documentation which contributes to the cost.
User Support and Training
It's critical to set aside money for both user support and training. Investments in training materials, sessions, and support resources are necessary to guarantee that employees can use the program efficiently, and these expenses should be included in the total cost.
Project Complexity
The project's overall complexity may have an effect on expenses. The number of stakeholders, the organization's geographic locations, and the degree of collaboration needed can all have an impact on the development schedule and related expenses.
Why Choose DITS for Custom Medical Billing Software
At Ditstek Innovations, we have a team of dedicated software developers with years of expertise and experience in developing healthcare software. With experience working with multiple healthcare organizations, we understand the requirements of healthcare service providers. Our developers customize the software solutions to meet your requirements and simplify operations.
With a proven record of delivering reliable and efficient solutions, Ditstek Innovations understands how to create medical billing solutions for small business that meet the unique requirements of healthcare service providers. Our team of experts makes use of robust security measures in addition to essential features, while adhering to healthcare compliance standards. Our unique approach to software building allows us to optimize costs and ensure top-notch quality in our healthcare software solutions.
In addition, our experience in the healthcare industry enables us to customize the features required by healthcare providers and integrate our solutions with their existing systems to make day-to-day operations easier and more convenient. Our development team also offers after-deployment maintenance and support to ensure any problems are fixed as soon as they arrive. With a proven track record and experience working with multiple healthcare clients, DITS is the organization you can rely on for medical billing solutions.
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Our Engagement Models for Medical Billing Software Development
We at DITS offer three engagement models, including a fixed price model, an hourly model, and a dedicated team model for software development, providing a high-end and flexible option for businesses to opt for custom medical billing software.
Fixed Price Model
In our fixed-price model, we provide you with a fixed budget and document the scope and requirements of the project before the development begins. As the price and time are fixed, it ensures that developers work their best to meet the strict deadlines, and everyone knows what needs to be done at every stage. With a fixed-price model, you don't need to worry about any hidden costs or setup fees. You only pay what is fixed in the contract, and everything, including the quality of work and completion in time, is assured by our development team.
Hourly Model
In addition to the fixed price model, we also offer hourly pricing models for companies that need flexibility in payments. We offer you an hourly price for the project, an estimated budget, and a deadline. However, we ensure no hidden costs, and payments are made based on monthly billing. You get period reporting and review of the work being done on the software building. The hourly model is best for companies looking for flexible part-time payments during the project.
Dedicated Team Model
Our dedicated team model offers a flexible pay-as-you-go service that is best fit for companies that want focused attention for their software development projects. The dedicated team model offers you benefits similar to those of hiring an in-house team. However, in this model, you don't need to recruit, hire, or train a team. Instead, you get a highly knowledgeable and experienced team that works on your project. The best part of this model is that you get super control over the team and the project, as you get reports of the day-to-day work. Also, you have the flexibility to change things at any time as per your requirements.
Conclusion
Estimating the cost of customer medical billing software can be challenging. The number of features, complexity, design, scalability, and integration requirements are just a few. Considering all the factors mentioned in this blog can help you get an estimate of the total medical billing software cost. However, to get a precise estimate of the cost of any software, it is essential to consult a custom software development company like Ditstek Innovations. Hiring a company with relevant knowledge and experience in developing healthcare software can help you build top-notch billing software for your organization and enable you to offer better patient care and services.
FAQ's
What is medical billing software?
Medical billing software is a tool that streamlines the billing process for healthcare providers. It automates all the tasks, ranging from patient invoicing to submitting claims to the insurance company, payment tracking, and coding compliance. Medical billing software enhances accuracy, relieves administrative workload, checks reimbursements from insurance companies for timely payments, and cash flows into the accounts of medical practices.
How much is medical billing software?
The medical billing software cost depends on the features, capacity for users, and deployment. The basic solution would start at about $30 to $100 per month per user, whereas advanced systems with EHR, reporting, and automation would take up several hundred dollars as a monthly fee. Custom enterprise-level solutions might have a one-time setup fee as well as continuing charges for support.
What are some popular medical billing software programs?
Some of the highly recognized medical billing software in use include Kareo, Athenahealth, AdvancedMD, DrChrono, and NextGen Healthcare. These solutions serve functions such as claims management, report generation, appointment scheduling, and electronic health records (EHR) integration. They differ, with each having its own pricing, scalability, and customization, thus serving a broad range of small practices to large healthcare organizations.
Nidhi Thakur
With more than 19 years of experience - I represent a team of professionals that specializes in the healthcare and business and workflow automation domains. The team consists of experienced full-stack developers supported by senior system analysts who have developed multiple bespoke applications for Healthcare, Business Automation, Retail, IOT, Ed-tech domains for startups and Enterprise Level clients.
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