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A.
Dear
Moses:
Medical billing is one area where scammers proliferate. They let you
believe that you can succeed in this business even without any knowledge of
medical codes. As you said, you do not know anything about medical codes, but
the company offers you a software that can alleviate that problem.
Medical billing is a business that requires extensive knowledge and skills
that can only be gained through training and education. Do not be led to
believe that it is very easy to get clients -- doctors, hospitals, insurance
companies -- even if you do not have any knowledge of medical codes. Many
people who fall prey to these scams find that the promise of high income and
loads of clients is simply not true.
Like any other business, you have to work hard to convince your clients to
trust a crucial part of their business to you. If a doctor finds that you know
nothing about medical codes, do you think that doctor will give you their
business even if you say that you already have a software? The business of
that doctor depends on how well the medical billing provider is able to
collect on his receivables from insurance and patients.
If you are planning to invest in a business opportunity, the Better
Business Bureau recommends the following:
1) Ask the company where it is incorporated and whether it has an in-state
office; ask for names of owners and officers, their backgrounds, and prior
business experience. Verify the information with the BBB or another impartial
outside organization.
2) Ask about the product you will be selling, what it will cost you, your
source of supply, any performance claims and guarantees, the company's
replacement and repair policies and procedures for handling complaints from
you or your customers.
3) Ask about any initial fees you will be required to pay and what they are
to be used for.
4) Get written copies of the company's business and financial statements.
Ask an accountant, attorney or outside financial expert to review the
materials. In most cases, the FTC requires the promoter of a franchise or
seller of a business opportunity to provide prospective buyers with detailed
disclosure documents at the time of the offering. Several states require that
certain disclosure documents be provided at the time of the offer.
5) Investigate and verify all information received from the salesperson.
6) Consult with people who know the product and type of business you may be
entering. Review with them the selling company's claims concerning
marketability of the product, pricing, projected profits, etc. Learn how many
sales people are in your area and whether you will have an exclusive
territory.
7) Independently contact some of the people who have already invested in
the product or service about their experience.
8) If you decide to invest, get all promises in writing and the contact
signed by an authorized agent of the company. If you suspect fraud, contact
the Better Business Bureau.
Our e-book, "Practical Home Business Ideas for the 21st Century" covers a
section on medical billing. It discusses how you can avoid falling victim to
scammers, and how to gain the knowledge and skills needed to make this
business a success. It also covers sections on how to start this business,
start-up costs, and how to market this kind of business.
Good Luck !
About
the PowerHomeBiz.com Guide:
 Nach Maravilla is
the Publisher of Power Homebiz Guides. He has over thirty years
experience in sales and marketing of various products, which
covered as he jokingly describes, "from toothpicks to
airplanes" He also had extensive experience in
International trading and he always excelled in special promotional
ideas for retail outlets.
The opinions expressed in this column are
those of the author, not of PowerHomeBiz.com.
Users
should not treat the Guide's response as legal, accounting, or
professional advice as all answers are intended to be general in
nature. Such advice can only be properly given by qualified
professionals who are fully aware of a user's specific geographical areas or circumstances, such
as
an attorney or accountant.
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