How To Start A Medical Billing Service

As a medical billing specialist, you'll be responsible for issuing invoices on behalf of a physical or medical office. In many cases, doctors struggle to get paid by patients or insurers and it would be your job to secure payment on their behalf.

Your job may also include mailing patient statements, entering in patient information into online databases, posting payments, handling billing inquiries and even following up on all unpaid invoices.

As a medical billing specialist, your tasks will also include submitting invoices online, including sending insurance claims directly to the insurance companies such as Medicare.

Since insurance agencies give priority to claims filed electronically, you can maximize your ability to secure payment for your clients while minimizing your workload through eliminating the need to personally mail invoices or collect payment.

There are very few skills required in order to start a home based medical billing business, however you will want to brush up on medical terminology so that you understand the different references made within the medical industry.

You will also be required to use medical terminology if you offer extended services that include completing patient records or explaining to patients what the invoice involves.

You will want to learn the basic medical billing and claim process as well, such as how to bill patients and insurance companies, how to file claims, follow up with invoices and how to report diagnoses and trace claims.

The key to building a successful home based medical billing business is to build relationships with your clients so that you can gain the trust and confidence needed to secure projects over a long term period.

Billing is incredibly important to doctors and they'll rely on you to make sure they are paid for services rendered, so you need to demonstrate your ability to effectively follow claims and follow up on a regular basis.

To get started, you will want to develop a business plan that highlights your road to success. Include the tools and resources you need, any training or resource sites that you can use to expand your knowledge, and how you plan to market and manage your business.

Through careful planning and preparation you will be able to build a viable business set up for long term success.

You will also want to choose the type of business that is most appropriate based on your marketing outreach and client base. You can register a business as either a sole proprietorship, as a partnership or even a LLC (Limited Liability Company), and later expand your business into a Corporation.

It's important to understand the differences between each business license so that you are fully protected, so contact your local business center for assistance before registering your business.

You also need to make sure that you have any required permits or registration requirements taken care of before you begin to secure clients.

While it's unlikely that you'll need to obtain any special licensing to run a home based medical billing business, it's always best to be fully prepared by talking with a small business specialist.

As for setting up shop, you'll require very little other than a computer, fax machine, HCFA 1500 forms, additional phone line dedicated to your business, office supplies and the most important tool, your medical billing software.

Medical billing software can run anywhere between $200-$500, depending on the features and flexibility of the software application, so make sure to research different software options before purchasing.

In addition, whenever possible ask for a demo of the software prior to purchase so that you can personally evaluate the software paying attention to ease of use and available features. You want to purchase software that can grow as your business does, avoiding unnecessary expenses later on if you are required to purchase upgrades or additional software components.

Make sure that the software developers are willing to provide training and support should you encounter problems with the software, or need additional help learning how it works.

Start up costs should not exceed $2000, depending on the resources and equipment you already have, as well as the extent of the services you plan to offer.

Marketing your home-based medical billing business is important in order to secure enough clients to maintain your business. You can market your business a number of different ways, including by contacting local doctors and medical centers offering your assistance.

Ask for referrals from doctors that may know other physicians that are looking for a personal medical billing specialist and always be on the lookout for ways of maximizing your business exposure through local business centers and advertising channels.

You could also create an introductory packet that includes your business card as well as a summary of your services and distribute it directly to medical centers and physicians in your local area. And don't forget, you can also offer your services to doctors in other areas as well, by advertising your service online!

Join the Chamber of Commerce for additional business support and direct referrals, and consider finding a business mentor to help guide you along.

And finally, continue learning about the medical billing industry.

The more you know about it, the more you work towards networking with others who are experience in the business and the more you work towards building brand awareness, the easier it will be to secure clients and building a profitable and long term business of your own!

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