Since medical billing and coding specialists are in high-demand today, a lot of people who have medical basics try to start providing the medical billing and coding services to any medical facilities. Today, starting a medical billing and coding service can be a great opportunity to increase your income.
Keep in mind, starting any business is not as easy as you think, neither is the medical billing and coding business. It may take some extra steps that you can do until you successfully run the medical billing and coding business. Of course, there are a bunch of stages that you should pass when starting the medical billing and coding business.
Starting a Medical Billing and Coding from Home, Here’s the Guide!
The main point when starting a medical billing and coding business from home is to ensure the individual is basically in this field or understands any knowledge in this field. Before starting this business, make sure to think that it is the best fit for you.
Running a business in the medical field, does not mean that you should have the basic knowledge in medical. If you are interested and really sure that you will be able to run the medical billing and coding successfully, you should do the following stages below!
Step 1: Take a Research to Understand the Market
Before starting a business in medical billing and coding, make sure to do research to understand your market. This way is very necessary to see who your best clients are and who the new clients will need your medical billing and coding service.
In the case of taking research, you can also reach out to local medical practices or clinics. Then, you may ask them about their medical billing and coding needs. By doing so, it will help you determine a better idea about the need for your services within the local market.
Step 2: Learn About the Start-Up Cost
After doing research to determine what the best services will fit for you, it’s a great time for you to learn deeply about the start-up cost. You may already know that running a sole business in the medical billing and coding field will be easy to start, when you have a lot of budget.
Moreover, running a home-based small business will let you avoid overheads like to pay your office rent or also to hire and train the employees. Instead, the most expensive cost to start your medical billing service is in billing software.
To start your home-business in medical billing and coding, it may cost you around $100 to $10,000 depending on the size of the company, the number of providers, the number of employees and software features. With the estimated cost of running medical billing and coding business from home, you have to equip your home office with some equipment, including:
- A reliable computer ($500 – $3000)
- A printer and fax machine ($150+)
- Software licensing ($1500-$3500 per user)
Here are the other costs that you may need to consider:
- Software upgrades ($500-$3500 per year)
- Backup hard drives ($50-$150 per drive)
- Ethernet switches and wires ($50-$100 per wire)
- IT support ($100+ per hour)
In the case of running your business into a medium or large company, your business will cost up to $50,000 to buy and install your equipment. When your business grows, you may likely spend additional costs.
Step 3: Get Trained
If you have no credentials in the medical billing and coding field yet, you have to enroll in a training certification course. The certified training courses will earn you in-depth knowledge of medical billing and coding and get an authentication as a professional.
If you choose a certification training program, you can pick at least a course which includes all necessary code manuals and exam preparation. It’s important to note, the medical billing certification programs have to cover three main code manuals, below!
- CPT: Current Procedural Terminology
- ICD-10-CM: International Statistical Classification of Diseases and Related Health Problems
- HCPCS: Healthcare Common Procedure Coding System
Here are the association that provides three main codes above:
- American Medical Billing Association (AMBA)- Certified Medical Reimbursement Specialist exam
- American Health Information Management Association (AHIMA) – Certified Coding Associate
- American Academy of Professional Coder’s (AAPC) – Certified Professional Coder’s board exam
So, make sure to join one of the associations above or more than one, as some facilities often require you to get both.
Step 4: Select a Medical Billing Software
To successfully manage your medical billing and coding, you may need great software. In fact, there are a number of medical billing and coding softwares that you can choose from. However, not all medical billing and coding softwares is great to use.
So, it’s highly recommended for you to choose the best one. Some things to consider when choosing medical billing and coding software include ease of use, built-in unified communication system, compatibility and integrations with back-end tasks, affordable cost, and many others.
Step 5: Apply for a Business License
If you want to build your home business legally, you will need to apply for a license. You definitely can choose to form your business with an LLC or a Corporation. Aside from that, you also need to register for taxes before you accept a new client.
Step 6: Develop Marketing Strategy
If your home business in the medical billing and coding field has been running, you may need to develop your sales strategy to gain more clients and win your new business. To develop your marketing strategy, you may need to establish a stellar sales team, always monitor your sales funnel.
In the case of developing your sales strategy, you may also need to follow-up with every prospect using winning sales email templates. Last, ensure your marketing and sales teams are on your line.
Step 7: Establish a Professional Network
After your business is growing up, it’s a great time for you to build your professional network. You may need to join LinkedIn groups to network with other professionals. You also should become a member of professional associations including AAPC, AHIMA and HFMA.