How to start a Medical Billing service company?
Before starting your own cleaning company in USA, you must take preliminary decisions.
Understand your industry. Why is cleaning industry suitable?
Medical billing and coding services is an integral part of Revenue Cycle Management (RCM) and it is the process of streamlining medical claim submission for faster payment from insurance. Verifying insurance and entering information quickly and accurately to ensure a clean claim is a key for sooth operations of billing services company.
Outsourcing billing is a smart way to maximize claims revenue in medical services practice. Professional billing services can improve the accuracy and efficiency of the back-office systems, maximizing revenues through reduced billing errors and fewer unpaid claims.
The number of physician-owned practices is currently in flux. While the number of practicing physicians continues to increase, the AMA 2016 Physician Practice Benchmark Survey indicates that a higher percentage are choosing to work as an employee at a specialty group or within a hospital system. Despite the recent trend of practice consolidation, nearly half of billing companies surveyed anticipate revenue growth for their business.
As per latest research nearly one-third (28%) of physician and specialty practices are considering outsourcing medical billing in the next two years, with one in six expressing a strong likelihood of outsourcing.
- Medical Billing Outsourcing
- Medical Coding Outsourcing
- Business Process Outsourcing
- Claims Submission
- Patient & Insurance Follow Ups
- Revenue Cycle Management
- Credentialing Services
- Practice Claims Audit & Management
Global Market Potential
The global medical billing outsourcing market size is projected to reach USD 23.1 billion by 2027, expanding at a CAGR of 12.3%, based on a new report by Grand View Research, Inc.
In response to the increased need for RCM services and the low barrier to entry, there has been significant growth in the medical billing industry—63% of companies surveyed are less than 10 years old and 26% less than two years old. New and established specialty providers are seeing double-digit growth. Billing companies have numerous options for establishing a specialty focus or branching out to serve other growing medical specialties. The 2018 Kareo Billing Industry Survey, conducted between June 27 and July 4, 2018, includes responses from 248 billing companies (from small, medium, and large-sized firms throughout the United States) knowledgeable about medical billing industry practices. Most companies (63%) serve 1-25 providers. Small companies, servicing 1-25 providers, currently serve 15% of total providers. Medium-sized companies, servicing 26-100 providers, support 28% of total providers. Large companies, with over 100 providers, serve 57% of total providers.
Understand your market. What is your target audience?
You must know your audience so that you can create targeted strategies accordingly. COVID 19 created a market for online platforms and virtual franchises. After COVID 19 struck, the virtual medical billing services saw a surge in growth, whereas most of the businesses plummeted into decline. The following are the target market
- Solo practitioners
- Physician Groups
- Doctor’s Clinics
- Urgent Care Centers
- Small-sized Hospitals
- Healthcare Facilities
Overview of the budget
Before starting any business, the main question is what is the amount of investment you want to inject in the business? What is your starting capital? How soon can you retrieve your investment?
Initial Capital Investment – starting from $100,000
Investment amount will be calculated at actual and progressively as on every stage of the process would involve a budget price and its deliverables, so as to keep the investors fully updated and transparent. An additional 25% of the investment amount to be kept in business bank account for operating expenses. This amount includes at a minimum three (3) months of average projected expenses to cover startup costs, working capital costs, and contingency financing.
Return on Investment
- 35% ROI per annum
- 2.5 – 3 Years Break Even
- $3,000 – $5,000 Income Per Month
Choose a Location
You must decide the location of your business. Decide which state, city and area is feasible for you. Number of factors can influence your decision such as family orientation, market study and scope of growth.
Make a Business Plan
Once you’ve made all the executive decisions, another essential step is to make a detailed business plan. There are number of topics you must cover in the business plan which are as follows:
- Executive summary
- Business model
- Business objectives
- Mission statement
- Vision statement
- Core values
- Company summary
- Location and property details
- Services description
- Market analysis: SWOT, PESTLE Analysis
- Marketing strategy: 4 P’S
- Business Structure
- Operations plan: personnel requirements
- Financial plan
- Feasibility report and projections
- Exist strategy
Register your business
If you plan to start a business in USA the first step is that you must register a company in USA irrespective if you are a US Citizens, Resident or Non-Resident and to form a US company from anywhere in the world. You can setup a company in any of the 50 US States to make your business dream come true. Our USA company registration services include everything you need to get your company fully incorporated and operational in the United States.
US Business Address
To open a company in the United States, you are required to have a US business address in the state of incorporation.
Apply for licenses and permits
Apply for all the licenses and permit as per the state laws
Procure the right insurances and bonds
Get the right business insurances to protect your company
In conjunction with US business address services, our USA company registration services also provide mail handling at your designated business address and the forwarding of mail via scanned email or physical forwarding to your address anywhere in the world.
As a part of our business establishment services and mandatory requirements in many of the situation, we provide a virtual phone number for your business which is dedicated to your business exclusively and is available to answer any of your business communication.
Registered Agent Services
A registered agent is a responsible third-party who is in the same state in which a business entity was established and who is designated to receive service of process notices, correspondence from the Secretary of State, and other official government notifications, usually tax forms and notice of lawsuits, on behalf of the corporation or LLC.
Obtaining an EIN Tax ID
An EIN Tax ID is required by the IRS and U.S Banks to track your business associated income and operate your business legally.
Registration of DBA
A “Fictitious Business Name” (FBN) or “Doing Business As” name (DBA) is a name you choose to do business under that can be different from the official legal name of your LLC or corporation. Fictitious business names normally need to be filed with the Secretary of State or other entity that governs business formation in your state.
Benefits of Medical Billing company
The Healthcare industry and medical industry have always been at their peak, covering the maximum portion of leverage in terms of profit Gains. Healthcare is one of the huge and lucrative industries that hold the opportunity for entrepreneurs. If you want to build a startup, the healthcare business is undoubtedly an excellent choice, that gives in the long term and hefty revenue. Getting high profit is the priority to choose a business and to invest in. To find out more about starting a healthcare business, the five most considerable benefits are mentioned here,
High demand for medical services during the COVID-19
Ever since the pandemic hit the world, the demand for medical billing services has soared drastically. The medical billing services saves staff time by processing, submitting, and following up insurance claims. With the new pandemic realities of 2020, billing, payment and tracking updates for adjusted by medical industry. After the cases of COVID 19 surged, the company suffered shortage of resources. This created an increase in demand for medical billing in USA.
Demand for Medical Services or Products in the Market
Healthcare is always in demand everyone is conscious of Health, which indicates that there is always a scope for medical services or products. While most industries are relying on trends and fashions, but to predict the demand and necessity of the healthcare industry is easy. As a result, you’re better able to gain more insight into the future perspectives of the industry and adjust your business strategy accordingly. By applying so, your success rate can be enhanced, and consistent revenue generation will also be increased.
Capacious Supplier Chain
The approach of choosing a healthcare business requires whole medical knowledge, it is not the reality. If you have stepped into the medical business then in healthcare you will find an extensive supply chain, The Basic niche services, like Chemical solution preparations, Manufacturing the medicine, and packaging of medicine. In general, the main concern of business is to Have more sales and marketing of the products, instead of the manufacturing devices used for the development.
You Can Contract with Government Departments
Usually, most of the healthcare services link the government department, this is the important proportion that you can get maximum of clients from the government healthcare departments. In this case, once you become an approved contractor, or have affiliation with government departments, you can bid contracts as a private organization. This also creates your profile with a reputation among different Business contractors and you can get lucrative contracts in the future.
Creating the genuine Impact
The medical industry always seeks professionals so there is an immense amount of job satisfaction. By starting a healthcare business whether you are a practitioner or non-medical Business holder. The work you do is crucial to guarantee that everyone has access to the care they require. By launching a healthcare firm, you can be sure that you’re making a real difference in people’s lives and having a great impact on the plane
Small Start-Up Costs
A healthcare company might be a wonderful choice if you want to start a business that doesn’t need a lot of capital. While some healthcare-related enterprises may need a substantial infusion of cash, others can be launched with modest funding and resources. This means that, if they so desire, almost any entrepreneur can find a profitable healthcare start-up.
Working in the Healthcare Industry
Be careful to examine the market and the industry before launching your new business. This is necessary when launching any kind of business, but since the medical industry has so many unique features, more preparation may be needed. But with careful planning, you may raise your chances of success and take pleasure in managing a successful healthcare enterprise.