How to Start a Medical Billing Business From Home

By Nicki Howell

Overview

Medical billing is an attractive opportunity for those interested in the medical industry, and want to work out of a home office. According to the Bureau of Labor Statistics, this occupation is expected to experience steady growth, adding over 500,000 jobs by 2016. Medical billing professionals can expect to earn between $20,000-$42,000 annually. But before launching this type of business, it's important to develop a business plan and strategy.

Step 1

Check out medical billing programs. If you don't have any experience with medical billing, it's wise to enroll in a program. This will teach you the fundamentals of medical billing such as reviewing hospital records, creating bills, ensuring accurate calculations and dealing with customer inquires. Career schools, such as Penn Foster, offer online medical billing programs that can be completed at your own pace. Attending one of these programs can cost up to $1,000, but many schools have payment plans.
Step 2

Apply for a business license. Once you have the required training under your belt, it's time to apply for a business license. Complete a business license application with your city by visiting the City Hall or completing an online application. The fee for processing an application can range from $50-$100 and take up to a couple weeks to process.

Step 3

Create a business plan. Before launching your business, it's important to have a plan. Your business plan will address marketing, operations and financial strategies for your business. If you haven't drafted a business plan before, check out Bplans.com. This is a company that provides free online templates.
Step 4

Market to medical practices and hospitals in your community. Print an inexpensive flyer promoting your services. Contact the office manager at local businesses and request a meeting to discuss your services. If businesses don't have an immediate need for your services, offer to handle overflow work during the busy times.
Step 5

Market your services in the online marketplace. Bidding sites such as Guru (see Resources) post medical billing jobs under the administrative section. Sign up for a free account to bid on projects in your area. If you want access to worldwide jobs, you will need to pay a subscription fee of about $30 a month.

Skill: Moderate
Tip: Offer to handle overflow work for other medical billing professionals. Just like everyone else, medical billing owners take vacations and get sick, and it's nice to have a backup. Forums such as Work at Home Mom (see Resources), have discussions where you can meet other medical billing small business owners to create these types of arrangements.
Warning:
Create a plan for handling your taxes. If you haven't been an independent contractor before, handling your taxes may seem intimidating. As a general rule, try holding back 30-40% of your income for taxes. You can also consult a tax professional who will develop a personalized plan based on your situation.

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