Efficient medical collection processes are essential to running a successful medical practice. This creates opportunities for those interested in launching a small medical collection business. But before starting this type of service, you’ll need to gain the required experience, determine your target market and purchase supplies for your business. You’ll also need to invest time in marketing your services to secure stable clients. Here’s a guide to starting a small medical collection business.
Make sure you have the necessary experience. If you haven’t worked in the medical collection business before, get some experience in-house before venturing out on your own. This can be achieved by working as a medical office specialist focusing on collections and accounting.
Once you’ve acquired the necessary experience, determine your target market. Evaluate the services other companies are offering and who they’re serving. Then, focus on niches that are underserved to maximize your earning potential. For example, you may notice that medical collection businesses aren’t focusing on psychiatrists or cardiologists, which would both be opportunities for success.
Decide where you’ll operate your business. A small medical collections business can easily operate out of a home office. Purchase equipment you’ll need for daily operations, including a desk, computer, office phone and fax machine. You may want to wait until you assemble your client list to determine which software to choose. This is because some medical practices prefer specific types of software, such as Columbia Ultimate, which is a popular medical collection software.
Apply for the necessary licenses. Most states require medical collection businesses to have a business license. Visit your city hall to apply for a license. This costs about $50 and takes a couple of weeks to process.
Market your services to potential clients. According to "Entrepreneur" magazine, medical offices that only have one or two doctors have high potential for using a small medical collection business. Contact office managers to discuss your services. And if the company doesn’t have an immediate need for help, discuss handling overflow work.
Create some basic marketing materials. A small medical collection business should have a couple of basic marketing pieces, including business cards and an inexpensive flyer or brochure. These can be produced at a local print shop using predesigned templates, which cuts down on the cost of hiring a graphic designer.
Don’t forget to shop the competition when setting rates. Contact companies that are serving a similar market to determine what rates you’ll charge.