by Teresa Watkins
(Oneonta , AL US)
If not I’m thinking about starting a medical billing service from my home. Is it hard or easy to start a business like this? And how much will it cost to start a business like this?
Thanks for the Question Teresa.
I currently don’t need any additional help but I’m constantly marketing to obtain additional clients. To answer your questions:
Is starting a Medical Billing Business hard?
Probably the hardest thing is getting that first client and convincing them you can take care of their billing needs. Most of the new clients I get are doctors who are frustrated with their current billing – whether it be in house or through a billing service. And there are some doctors who have unrealistic expectations of the billing process and what it takes to get them paid by insurance companies and patients.
As far as what you need to know to get started it’s really knowing how to enter patient information to submit claims, how to submit the claims (and getting it set up with your software and clearinghouse), how to enter insurance payment info from the EOB (Explanation of Benefits), and send patient statements. It’s also helpful to be familiar with diagnosis and treatment codes and how to follow up on unpaid insurance claims – usually just calling the insurance company and finding out why the claim was rejected.
Having a good knowledge of computers and software is helpful especially if you plan to use your own computer and purchase a billing software application. But now there are several on-line medical billing software services that don’t require keeping up with software upgrades and backups.
If it’s a busy practice keeping up with everything can be overwhelming a first but once you learn the processes and become efficient it’s a lot easier. If you have billing experience working in a doctors office starting will be much easier as you will know what to expect.
How much does it cost to start a medical billing home business?
One of the bigger expenses for starting a business are training (whether you do it yourself of take a course) and materials. I’ve listed several of the medical billing books that are helpful to me on the here. This can cost anywhere from a few hundred dollars and up depending on how much training you feel you need. Also discuss some of the training options here.
The other big expense is for office equipment – computer, fax, phone/fax line, etc. and billing software. Of course if you use an online billing service like Kareo you don’t have the expense of billing software – which can be thousands of dollars. I cover that in more detail at here including some of the options.
I currently have my own software and server which I purchased several years ago. My plan is to use an online software (such as Kareo or similar) as I don’t really want to mess with the expense and work of software upgrades and backups.
There’s also the expense of marketing your business. I keep things simple and market by phone, google, mail, and visiting doctors offices. This keeps the cost reasonable. I’ve had good results using some of the tips in “Learn The Secrets to Signing up Your First Doctor” and “12 Keys To Increased Wealth in Your Medical Billing Business” shown here on the Medical Billing Books page.
I’ve tried to give more details on what I went through starting a Medical Billing Home Business here.
I know I’ve rambled a bit but I hope I’ve given you some idea of what to expect in starting a medical billing business. Good Luck.
Thanks,
Gina