The Best Medical Billing Services of 2025

By 2032, the global medical billing outsourcing market is expected to grow at a compound annual growth rate (CAGR) of 12.3%, according to DataHorizzon Research. This reflects a growing trend among independent practitioners and small medical practices to outsource their medical billing to reduce overhead and eliminate labor-intensive in-house billing operations. Actually, DataHorizon Search also found that the medical billing services industry is expected to reach a market value of $40.1 billion by 2032. In short: By 2024, an increasing number of medical practices are expected to outsource their medical billing to third-party services.

As technology improves, so do medical billing service offerings. Automation has been a key driver of growth in recent years, streamlining not only internal medical billing operations but also how practices work with third-party RCM providers. It provides new opportunities for medical billers to quickly and easily clear claims and submit them to payers through clearinghouses.

For example, medical billing practices and services often automate the creation of beautiful invoices. They can also automate the processes by which they verify that the coding of a superb invoice is accurate and billable. The transmission of complaints and the generation of patient statements can also be automated.

Additionally, Outbound AI recently introduced generative AI technology to reduce administrative tasks for billing staff. Using this technology, which includes ChatGPT, staff can more easily manage denials, process EOBs, and verify eligibility and benefits.

New technological developments also raise questions about data security, which could be a major concern given the Arietis Health data breach announced in October 2023. This breach resulted in patient data, such as medical information and Social Security numbers, being sold on the dark web. Another breach – this one a suspected ransomware attack against UnitedHealth Group’s Change Healthcare unit in February 2024 – could bring more attention to cybersecurity. Expect your medical billing service to strengthen its digital security in tandem – and encourage you to do the same.

Additionally, medical billing quality may rank after safety in terms of importance. Indeed, a December 2023 study found that 62% of U.S. hospitals failed to meet at least one of three key medical billing standards: timely detailed patient statements, hospital legal action for unpaid patient bills, and patient access to qualified billing representatives. Expect medical billing services to prioritize all of these metrics for hospitals and small health systems in 2024.

Modern medical billing software and services also allow healthcare organizations to personalize the patient experience in how they deliver statements and capture payments. Many services have started implementing payment plans and other helpful features to improve the patient experience. Expect more RCM providers to follow suit and double down on the trend toward personalizing billing on a patient-by-patient basis.

Medical billing teams can also be expected to prioritize transparency throughout 2024 in response to consumer and legislative concerns. For example, in Texas, Governor Greg Abbott recently signed a bill requiring hospitals not to send patients to collections without first providing clear, detailed invoices.

Additionally, a consumer filed a complaint with the Colorado Division of Insurance regarding a medical billing error that could affect tens of thousands of people. National media reported this story, suggesting that medical billing transparency will be a major concern nationwide in 2024.

In Minnesota, the attorney general’s office has held public listening sessions on medical billing. These sessions are taking place as part of an investigation into medical billing procedures at Allina Health and Mayo Clinic health systems. This survey suggests that medical practices and their billing teams must prioritize a positive and transparent patient experience in 2024.

Similarly, the No Surprises Act – implemented in 2022 to protect patients from unexpected medical bills – came under increased scrutiny in 2023. So when a federal district court struck down part of the law, the American Medical Association expressed support for the move. However, in July 2023, federal executive agencies asked the court to overturn its decision. The AMA has since filed an amicus brief with the 5th U.S. Court of Appeals, asking that the original ruling be upheld.

At the end of November 2023, nearly 30 public companies considered the No Surprises Act a risk. The exact provisions of the law could therefore change during 2024, and medical billing requirements could evolve at the same time.

Given the contents of the Biden administration’s February 2024 progress report, changes to the No Surprises Act are almost expected. According to the report, in more than 80 percent of court decisions related to the law, insurers paid more money to out-of-network providers than the equivalent costs to in-network providers. Additionally, the three federal agencies that jointly oversee enforcement of the law are spending more time on it than expected. These findings may require changes to the Act and its application.

Medical billing services must also be prepared to adapt to potential Medicare changes. For example, the U.S. Centers for Medicare and Medicaid Services (CMS) expanded Medicare dental coverage in 2023 and will continue through 2024. This expansion requires Medicare Parts A and B to cover dental services essential to patients’ treatment and disease progression. It also covers a broader set of circumstances, such as treatment to eliminate infections before organ transplants and certain heart procedures. Billing services must adapt to these coverage changes to be effective.