Medical Billing Business Start-Up

Starting your own medical billing business from home requires reseach and a clear plan. Some people quit before they even get started, because of the fear of the unknown and not being sure where to begin.

Starting Your Own Medical Billing Business

Many medical billers ponder the idea of eventually becoming their own boss and setting up their own full-service medical reimbursement business to offer medical billing services from their own office. Many such businesses already exist where independent medical billing freelancers and consultants provide their services to medical practices large and small. Their fees are often based on the work load and complexity of the services, rather than quoting flat-fee standard charges.

Medical billers who want to start their own medical billing home business should thoroughly research the current market trends in their community to determine whether there is indeed a need for their services and understand their local and state laws. Then, write down your business goals and be clear about them. Here are some areas where to start:

• What are the responsibilities of the client
• Your responsibilities
• Services you will provide
• Local & State regulations
• HIPAA regulations
• Length of the contract
• Termination and early termination of the contract
• Do you need an attorney
• How to determine your fees
• Different methods of charging your providers
• How to write your contract without spending a lot of money
• How and when the client will pay you
• What if the client doesn’t pay you
• Pricing plans and fee structures
• O & E Insurance
• Compliance plan

Needless to say, you must also have complete faith in yourself and your desired goals.

Medical Billing Business Contract

A medical biller who provides services to doctors and outside entities needs a valid contract that spells out exactly what kind of services will be provided and what your expectations are of the client.

• How do you write a contract?
• What do you put in your contract?
• Where do you start?
• Can you use a sample contract?
• How do you know what your contract will require, when you haven’t even started your business yet?
• How can you get a good contract that will cover everything without spending a lot of money?

A proper contract is your "leg to stand on" when it comes to questions and disputes; should any of these arise you can go back and point out any agreements that are questioned, challenged, or unfulfilled in the contract. For most people, getting the first client is the most intimidating & difficult part of starting a medical billing business.

How Much Can a Medical Biller Charge?

Medical billers, as well as medical coders are compensated according to their level of training, experience, skills and how effectively these skills are used. A typical coding firm charges doctors $16-$19 per outpatient report to code. The possibilities are boundless. A biller who works independently may charge up to 7% of the collection and can make $48,000 in a year, or more, depending on location and number of clients. Salary.com reports that the average annual salary range for medical billers is between $33,370 and $41,5061 depending on their location.