How to Open a Medical Billing Business

Starting a medical billing business can be a good idea if you're looking for a home-based business. You can offer services such as preparing insurance claims, posting patient and insurance payments, preparing monthly patient statements, answering patient billing questions and even doing collections. As a medical billing specialist, you'll need to be good with numbers, organized and able to keep patient information confidential.

Difficulty: Moderate

Instructions

1. Learn the process for insurance claims, including coding and diagnoses. The best way to do this is find a person already established in a medical billing business. Spend time with her, and you'll pick up the things you need to know.

2. Buy medical billing software. Talk to people who already use this type of software to get recommendations. Most medical software companies will let you demo their products. It's a good idea to look for a company that offers ongoing technical support. Get one that allows for more than one doctor, because your business will grow.

3. Set up your office. If you plan on having a home office, you need a space that can be closed off from the rest of the house and locked, because you are dealing with confidential information. To be even more professional, have a separate cell number for patients to call when they have billing questions.

4. Market your new business. Start by asking your family's doctors if they are interested in a billing service. Get your name out to medical offices. A large practice will have in-house billing personnel, but a one-person office may farm out billing. A larger office might still be willing to contract out collections. It's not always a pleasant job to do, but if you're good at it, you should have no trouble finding customers

Tips & Warnings

• Check with your local community college about classes in medical billing. Although you don't need a license or certification to open a medical billing business, taking a course will add to your credibility. Some of the larger insurance companies offer workshops in medical billing for medical practice personnel. Get familiar with medical terminology. You don't have to be an expert, but you do need to understand basic terminology. For a specialist, such as obstetrics, concentrate on the language for that area.

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