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Costs To Start a Medical Billing Business

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Costs To Start a Medical Billing Business

While the costs of starting a medical billing buisness are small in comparison to many other businesses, it will cost money to begin the business.  Look at how much it will cost you to start your business and research to make sure you have access to that money and you are legal.  There is no point in spending money on medical billing courses and then find out you can’t afford office equipment or run your business out of your home due to restrictions.

There is much more to the medical billing business than getting a book on coding and billing, buying some software and opening your doors.  There will be State laws and licensing, zoning laws, tax laws and in some areas City or County laws.  If you are doing your business from out of your home, check to see if your property is zoned for a home business and there are no restrictive covenants from a homeowners association

 

A shopping list for starting a home based medical billing business includes:

  • Software (depending on who you choose it may be a one-time upfront, a monthly recurring fee or both)
  • Clearinghouse fees
  • Inspections
  • Office supplies
  • Office furniture
    Postage
  • Additional phone lines
  • High speed internet
  • Computer
  • Answering machine
  • Fax machine
  • Copying machine
  • Scanner
  • Data storage (pay attention to data storage because if you have a computer crash you better have a copy somewhere.
  • Business insurance
  • HIPAA protection
  • Errors and Omissions Insurance
  • Cash for living expenses as it may be several months until you get your first client.
  • Corporation/LLC filing
  • Marketing materials (fliers, website, business cards, etc.)

While the startup fees can and will vary, be prepared to spend $4,000 – $10,000 to get started after training.

A good plan before starting is to develop a business plan (remember SCORE and a Small Business Development Center may be in your neighborhood and they will help you for free) and see how the numbers work.

It will take time to start making money with your medical billing business unless you have a higher volume practice starting day one.  Many successful medical billers actually started their business on the side until it supported them.


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