How to Start a Medical Billing Business From Home
While medical doctors are the stars of the medical field, and they have skills that command high fees for their services, doctors often have difficulty invoicing for the money due them. Submitting claims to the myriad of third party payment providers is a specialty on its own. Doctor's often are willing to hire a company that can handle this part of their business, so that they can concentrate on patient care. Medical billing can be a lucrative, but challenging business.
Other People Are Reading
Instructions
-
-
1
Determine your target market. Some medical billing companies specialize in one medical field or specialty, while others work with diverse care providers. Social workers and home health providers also need medical billing services. Determine how large your business should be -- if you want to work alone or with employees. If you have minimal experience in the industry, hire employees who make up for your weaknesses
-
2
Invest in startup equipment. Medical billing has low startup costs, but does have some specific requirements, such as a computer system and phone, as well as basic office supplies. You will also need office space. If you plan to operate from home, establish a separate room in your house for your office to make it easier to claim business use of the home deductions at tax time. If working outside of the home, find a suitable office space. Consult a local real estate broker specializing in commercial space to help you find a location.
-
-
3
Choose billing software carefully. Packages vary in cost, from hundreds to thousands of dollars. The more expensive systems may not work better. Get references from the software companies you are considering from people who actually use the systems. Find out what they like about the software. Ask if the software is user-friendly, and if they have any problems with its basic functions. Review turn-key business packages that come complete with all of the equipment and software, as well as a marketing plan and lead management tools. Consider if this is worth the extra money to you. A stand-alone software package coupled with marketing assistance from local vendors may work better.
-
4
Decide how to bill your clients. Most medical billing specialists invoice based on a percentage of claims collected or a set amount per claim. These are predictable for the clients, as they can figure a certain cost per claim. Some billing specialists also offer hourly billing. This may work for clients who have a very low billing volume, or for clients who are more comfortable paying per hour for the work.
-
5
Start operating your business. Seek referrals to potential clients from business people or doctors that you already know. Other professionals that you may have worked with in the past, like real estate agents or accountants, for example, may have names of doctors and other medical practitioners in their files they don't mind passing on to you. Work hard to keep clients happy and you will have no shortage of business.
-
1
Tips & Warnings
Consider taking a class on medical coding at a local community college to gain some experience in the field. A certificate or degree may also provide more credibility.
Turn-key packages for medical billing are often just scams. If you are considering purchasing one of these packages, ask the seller for references of people who used the system to establish a successful business. Check with the State Attorney General's office to see if any complaints have been filed about one of these companies before entering into any agreement.
