Medical Billing Forum

Starting a Medical Billing Business => Starting Your Own Medical Billing Business => Topic started by: voquendo6167 on August 24, 2016, 01:07:52 PM

Title: Starting a new business
Post by: voquendo6167 on August 24, 2016, 01:07:52 PM
Hi, Im very interested in starting my business from scratch. How important is it to hire a lawyer and an accountant before anything?
Title: Re: Starting a new business
Post by: PMRNC on August 24, 2016, 04:24:36 PM
A lot of business startups don't go directly to an attorney or accountant, you can begin by registering your business, put together your business plan, marketing plan, etc. The lawyer will be needed to review any contracts you will need as well as any other legal business issues for your state.



Title: Re: Starting a new business
Post by: voquendo6167 on August 25, 2016, 10:40:03 AM
Great, Thank you!
Title: Re: Starting a new business
Post by: voquendo6167 on August 25, 2016, 11:25:40 AM
Hey Linda,
Im also looking into sole proprietor instead of LLC.  As I mentioned earlier, I'm starting from scratch, so I will not have employees or partner.
Any advice?

Thank you in advance!

Vanessa
Title: Re: Starting a new business
Post by: PMRNC on August 25, 2016, 12:15:24 PM
Sole proprietor is a better way to start. Later on you can decide to go LLC. It will also save you on E/O insurance. For some reason E/O carriers charge more for the corp's than they do the sole proprietor.  I went LLC only so I could put my billing business as a division of my LLC that saved me a lot of trouble, but I still pay more in taxes and such.

Title: Re: Starting a new business
Post by: voquendo6167 on August 25, 2016, 02:45:07 PM
Thank you.
I also wanted to know, if I need to hire an accountant once my business is registered or is QuickBooks easier and cheaper?
Title: Re: Starting a new business
Post by: kristin on August 25, 2016, 10:47:35 PM
I can see hiring an accountant to do your business/personal tax returns. Beyond that, I don't know if you will really have the need to.
Title: Re: Starting a new business
Post by: Michele on August 26, 2016, 07:22:40 AM
Agree with Kristin.  When we first started we hired an accountant to do our taxes but we did our billing to providers thru quickbooks.  When we hired employees we started out doing our own payroll and taxes but switched to an accountant after a while because it was a bit complicated.
Title: Re: Starting a new business
Post by: PMRNC on August 26, 2016, 01:38:14 PM
 I use Quickbooks and it's pretty good for what I need. I also use TurboTax for Home and business.
Title: Re: Starting a new business
Post by: voquendo6167 on August 29, 2016, 02:02:56 PM
Thanks guys!!! I love this forum, its such a GREAT help! :)
Title: Re: Starting a new business
Post by: angelina59 on September 02, 2016, 10:31:45 PM
Hello Ladies, I graduated in 2012 with an associate degree for medical billing/coding and basically gave it up because of coders being pushed out. I had no idea that billing was still a separate department. In fact I was told in the medical office/facilities, the billing office were also handling the coding as well as coders the billing. I haven't looked into any of this for over a year now. So if this is the case why would a Dr. outsource the billing? I would love to get back into this if I knew it was going to go somewhere. I was going to also get into medical transcribing till I heard it was being weeded out also. If you apply for a medical billing position you would almost have to know coding also, wouldn't you? If I thought about opening my own business, I would almost have to work for a DR first, wouldn't I ? This is very interesting  to me. Maybe I can put my degree to work after all ;)
Title: Re: Starting a new business
Post by: PMRNC on September 03, 2016, 09:35:09 AM
There are still many reasons why physicians would outsource. The main reasons are costs of course, benefits, training, etc. Physicians are more apt to hire bilers than they are coders. If you are a certified coder along with having billing experience that's an added bonus. If you only have your degree, no certifications or actual experience it will be much harder for you to get your foot in the door. Some, like myself will argue that it's easier to market yourself as a business rather than looking to get into a position. Both are difficult to do without actual experience. You might want to look into certification to juice up your resume and add value to your marketing.

Title: Re: Starting a new business
Post by: angelina59 on September 03, 2016, 11:34:54 AM
 Thank you for your response PMRNC :D, I will look into the billing and coding certification.
Title: Re: Starting a new business
Post by: voquendo6167 on September 09, 2016, 08:11:35 PM
Hello, I have a question. I've heard of people starting their business in their home. Im looking to start in my bronx, ny apartment. Is that going to be a problem?
Title: Re: Starting a new business
Post by: Michele on September 11, 2016, 04:37:45 PM
You need to make sure it is ok to have a business in your home.  Some residential areas it is not ok.  I have heard of someone who lost their home because they did not check first.
Title: Re: Starting a new business
Post by: PMRNC on September 13, 2016, 01:15:47 PM
NYC has pretty strict zoning prohibitions for home based business in apartment buildings. Best to check. Mostly those places are concerned with parking in non business zoning areas.
Title: Re: Starting a new business
Post by: voquendo6167 on September 14, 2016, 09:30:55 AM
Is there an easy and fast way to find out?  Should I Google it?
Title: Re: Starting a new business
Post by: Michele on September 14, 2016, 10:15:57 AM
Your building manager may know.  You could also try contacting the Department of Buildings.  http://www1.nyc.gov/site/buildings/index.page 
Title: Re: Starting a new business
Post by: PMRNC on September 14, 2016, 01:36:36 PM
There are so many different rules/regs when it comes to NYC and home based businesses in apartment buildings. I've had a few members who were unable to start home based business due to those restrictions.
Title: Re: Starting a new business
Post by: voquendo6167 on September 14, 2016, 02:06:37 PM
Thank you for the response. I'm definitely going to look into it. I really hope I don't have that issue. I've been wanting to start this business for years now, but haven't because of my fear to fail.
Title: Re: Starting a new business
Post by: voquendo6167 on October 28, 2016, 10:33:49 AM
Can anyone tell me if the 2016 revised version of How To Start Your Own Successful Medical Billing Business book exist?
Title: Re: Starting a new business
Post by: Michele on October 28, 2016, 08:01:53 PM
We don't revise it every year.  Only when we feel that there is information that needs to be updated.  It was last updated in 2013.
Title: Re: Starting a new business
Post by: PMRNC on October 29, 2016, 03:21:33 PM
NYC is hard to get business license to operate out of apartments. Need to call business licensing and zoning but I can tell you it's REALLY hard out of an apartment in NYC, rarely do they allow home-based businesses in the city.
Title: Re: Starting a new business
Post by: voquendo6167 on October 31, 2016, 09:48:07 AM
I did some research on operating the business out of my apartment. And I was told its fine as long as it doesn't get in the way of things, as far as traffic and loud noise in my apt.
Also the last update for the revised book I'm looking for, I found the 2014 version, but I was looking for a more updated one.

Thank you anyway.
Title: Re: Starting a new business
Post by: Michele on October 31, 2016, 10:29:12 AM
It is due for an update but that is the most current version.  When we update it you can get a copy of the updated version free if you have previously purchased it.
Title: Re: Starting a new business
Post by: voquendo6167 on November 01, 2016, 10:50:03 AM
Thank you.
I have never purchased the book, but do you know when the new version is coming out, so I can buy it?
Title: Re: Starting a new business
Post by: Michele on November 01, 2016, 11:38:15 AM
I don't have a date yet.  We try to revise all books regularly but we also go by if there is new/current information on that topic.  If you do purchase the current version you are automatically eligible for the updated version as soon as it is released.  I would think it would be early in the coming year. 
Title: Re: Starting a new business
Post by: voquendo6167 on November 02, 2016, 08:57:10 AM
Ok, I'll just purchase the 2014 version from amazon and look out for the newer one early next year. Thank you
Title: Re: Starting a new business
Post by: voquendo6167 on February 10, 2017, 11:25:26 AM
I have a question for PMRNC.  You said you quit your full time job after signing 2 or more physicians. Were their any issues when you informed them that you had a full time day job?
Title: Re: Starting a new business
Post by: Michele on February 16, 2017, 08:59:37 AM
PMRNC has not been able to get on to respond to your question but I was in a similar situation.  I was employed full time by a major insurance carrier when I started my business.  I didn't inform my first few clients about my full time job unless specifically asked.  However when I did tell them I just assured them that I would be available if they needed me and I would absolutely get their work done timely.  I explained that my full time job was only until I had enough work to leave.  They were ok with that because in my situation I was telling them that I worked for a major insurance company but that I wanted to be working on the other side, for the doctors.  I just made sure that I checked my messages regularly and returned their calls quickly on my breaks.  Most of my first clients were smaller ones who were understanding. 
Title: Re: Starting a new business
Post by: voquendo6167 on February 16, 2017, 10:04:18 AM
Thanks Michele for responding. This is very important for me to know :)
Title: Re: Starting a new business
Post by: voquendo6167 on March 22, 2017, 11:16:55 AM
As the medical billing owner, is it required to take the osha and hipaa training?
Title: Re: Starting a new business
Post by: Michele on March 22, 2017, 11:45:42 AM
It is not a requirement.  It is good to fully understand both of those topics.  I would be careful if planning on taking such a training.  Make sure the person or company providing the training is reputable and that the training is actually current and applicable.  Anyone can put out a "training program" for those topics.

Title: Re: Starting a new business
Post by: voquendo6167 on March 23, 2017, 12:28:54 PM
Ok, thank you
Title: Re: Starting a new business
Post by: Kinlaw30 on March 26, 2017, 02:26:14 PM
Hello Everyone,

I'm looking to start my own home based billing service. I wanted to what will be the 1st steps to getting started...??I have taken a Medical Billing course a one year program 2011-2012. I'm currently enrolled in the Certified Billing Program where I will soon sit for the exam to become CBCS. I also work for the hospital system where I deal with the insurance, billing copays etc... so, I have plenty of experience. I just want to know where do I start what are some helpful resources or tools could I use during the process? Alice or Michelle I would like to purchase some of your products to get started which one(s) would be more helpful? I would be starting off as Sole Proprietorship.

Thanks.
Title: Re: Starting a new business
Post by: Michele on March 28, 2017, 11:38:46 AM
Sounds like you have a great foundation.  Marketing is your next step and will be the hardest.  Getting that first client is tough.  But once you get one, others will follow.  There are many different marketing ideas.  Many are on the forum if you do a search.  You also will have to decide on a software if you haven't already.  You don't want to wait until you get the client to pick out the software.  Sounds like you have the billing background.  You mostly need marketing help.  Start by searching this forum.  There are a lot of great tips.  We do have two books on marketing.  You can read more about them at:

http://www.medicalbillinglive.com/medical-billing-marketing/

http://www.medicalbillinglive.com/medical-billing-marketing-strategies/

Good luck!
Title: Re: Starting a new business
Post by: voquendo6167 on April 05, 2017, 03:19:50 PM
Is it best to open a business bank account rather than use my personal account since I'll be registering as a sole proprietor and no employees?

Do I need a tax id as a sole proprietor or should I use my ssn?  I was told never to use my social security number, but I want to make sure.

Oh and once I register my name, will it have an expiration date?
Title: Re: Starting a new business
Post by: voquendo6167 on April 20, 2017, 11:15:01 AM
Is it best to open a business bank account rather than use my personal account since I'll be registering as a sole proprietor and no employees?

Do I need a tax id as a sole proprietor or should I use my ssn?  I was told never to use my social security number, but I want to make sure.

Oh and once I register my name, will it have an expiration date?
Title: Re: Starting a new business
Post by: Michele on April 21, 2017, 10:24:46 AM
Is it best to open a business bank account rather than use my personal account since I'll be registering as a sole proprietor and no employees?
If you get a tax ID it is a good idea to have a separate bank account.  In general it is good idea to have a separate bank account.


Do I need a tax id as a sole proprietor or should I use my ssn?  I was told never to use my social security number, but I want to make sure.
This is your preference.  It is a good idea to have a tax id, especially since they don't cost anything.  You will use your tax ID for different things so if you don't want to use your SSN then you should bet a tax ID.

Oh and once I register my name, will it have an expiration date?

Do you mean register with your county or state?  If so, you would have to check with them on if there is an expiration date.
Title: Re: Starting a new business
Post by: voquendo6167 on April 21, 2017, 01:06:26 PM
Ok, thank you
Title: Re: Starting a new business
Post by: voquendo6167 on May 01, 2017, 10:44:25 AM
Where would you recommend to get business cards and marketing things, as far as pens, brochures, pamphlets etc......

Title: Re: Starting a new business
Post by: Michele on May 01, 2017, 11:18:09 AM
Business cards are definitely a good idea.  That is the most accepted method of handing out your contact information.  You can also leave them places, or have others hand them out for you.  Make sure to utilize all of the space available.  We list information on the back of the card as well as the front.  It gives you a bit more advertising space.  You can list the advantages of outsourcing, or services you provide, etc. 

The other things are optional depending on what you want to do.  I would not print up a ton of brochures ahead of time.  Many times you will decide to change information in the brochure and if you've printed up several ahead it can be a waste.

Title: Re: Starting a new business
Post by: voquendo6167 on May 01, 2017, 12:49:08 PM
Where can I get them designed?
Title: Re: Starting a new business
Post by: kristin on May 01, 2017, 07:33:38 PM
Google "printers" and your "town/city name". You should get a list of all printing companies in your area. You could also order them via a printing/marketing company on the internet, but if I were you, I would want to be able to see and touch examples of the business cards in person. Word of advice...avoid white/cream colored cards that are matte, with no texture to the print. Go for something with some color, and raised print that will stand out.
Title: Re: Starting a new business
Post by: voquendo6167 on May 02, 2017, 09:42:48 AM
Great, thank you!
Title: Re: Starting a new business
Post by: voquendo6167 on June 26, 2017, 10:06:59 PM
Does the clearinghouse come with the Physician's software, or do I have to purchase my own?
Title: Re: Starting a new business
Post by: Michele on June 28, 2017, 02:01:23 PM
PMS (Practice Management SYstem) systems do not come with clearinghouse services.  However Office Ally (clearinghouse ) does offer a free PMS system.  But you get what you pay for so be aware.   I love, love, love Office Ally as a clearinghouse, but I am not a fan (at all) of Practice Mate (their free PMS system). 
Title: Re: Starting a new business
Post by: voquendo6167 on June 28, 2017, 07:38:11 PM
I'll look into it. Thank you
Title: Re: Starting a new business
Post by: voquendo6167 on July 12, 2017, 09:11:04 PM
I'm still researching on the business. I'm going to have it registered next week. But do i really have to invest about 10K on a software? I saw somewhere here that I don't, but want to make sure. I definitely don't have that kind of money. I'm for sure starting with very little.
Title: Re: Starting a new business
Post by: PMRNC on July 13, 2017, 06:59:27 AM
Many billing companies utilize their clients system's remotely, so you don't have to purchase your own. Another advantage to this is your ability to be diversified and not have to have a client switch which is a big time saver! It also saves the client from messy conversions that almost always have their kinks. If a potential client wants to switch you give them some recommendations, let them obtain the license and again, you'll work remotely with them. I've used that business model since about 2011 and I'd never go back. It's also nice on the bottom line as you get to keep most of the money you make. :)
Title: Re: Starting a new business
Post by: voquendo6167 on July 13, 2017, 10:26:36 AM
Great!! Thank you
Title: Re: Starting a new business
Post by: voquendo6167 on July 25, 2017, 08:00:27 PM
I registered for the business certificate already. What would be the next step? Is it to obtain the tax Id?
Title: Re: Starting a new business
Post by: Michele on July 28, 2017, 08:41:06 PM
Do you know what form of business you are going to have?  Sole proprietor, corporation, PLLC?  You must decide how you are going to structure your business.
Title: Re: Starting a new business
Post by: voquendo6167 on July 30, 2017, 09:04:11 PM
Sole proprietor
Title: Re: Starting a new business
Post by: Michele on July 31, 2017, 07:41:40 AM
As long as you know that you want to be sole proprietor then I would go ahead and get your Tax ID.  After that, Market, market, market!
Title: Re: Starting a new business
Post by: voquendo6167 on July 31, 2017, 10:18:59 AM
Yes, I'm excited and afraid at the same time. I guess before marketing, I'll have to create and organize my home office, supplies etc.
Should I open a bank account first or wait for my first client?
Title: Re: Starting a new business
Post by: Michele on July 31, 2017, 11:58:08 AM
You won't need the bank account till you have money coming in to put into it!  But seriously, yes go ahead and open the account, but don't get so busy getting your ducks in a row that you don't get out and market.  You do need to be organized, etc, but all of the organization in the world won't do any good without clients.  We see people all of the time put so much effort into "getting ready" that they are burned out before they market and then they get frustrated because the clients don't come.  Get organized, get things in place, but market!

 
Title: Re: Starting a new business
Post by: voquendo6167 on July 31, 2017, 01:39:56 PM
Ok, thank you Michele