Thinking about opening a medical records management business? We tell you what you need to know to get started.
Healthcare has become big business in the U.S. and it shows no signs of slowing down anytime soon. But many people don't realize that the healthcare industry has created a plethora of opportunities for entrepreneurs outside of the medical profession.
The area of medical records and billing has risen to the fore as a healthcare sector that is ripe for entrepreneurial solutions. Physicians and medical practices routinely farm out record management and billing functions to third-party providers so they can focus on patient care. As a result, medical records management and billing businesses have emerged to fill a need in the healthcare marketplace.
But third-party providers who focus exclusively on medical records management are finding it increasingly difficult to survive in today's healthcare environment. Software advances have made it possible for medical practices to handle their own recordkeeping and electronic archiving with minimal (if any) assistance from third-party providers.
However, business is booming for medical records management providers who also specialize in medical coding and billing. Experienced medical coders and billers offload heavy administrative burdens from medical providers by preparing and submitting claims to insurance companies. Their expertise reduces the number of rejected claims and dramatically shortens the amount of time it takes for medical practices to receive compensation for their services.
Medical record management and billing is complex; startup entrepreneurs need to be highly familiar with standard healthcare practices and the technological solutions that are necessary for electronic recordkeeping and claims submission. Since breaking into the business can also be difficult, startup entrepreneurs are also advised to develop relationships with physicians and medical practices before fully committing to a specific business strategy.
The best strategy for startups is to conduct an evaluation of the local medical community before investing in a startup. Assess the systems physicians currently rely on for recordkeeping and claims submissions, and determine whether or not there is a demand for a new business in the market.
Best Medical Records Management Company Business Plans
If you're like most startup business owners, there aren't enough hours in the day to accomplish everything that's on your to-do list. Every task on your list is important, but writing a business plan is one of the things your medical records management business needs to do ASAP.
To help you navigate the process, there are a number of business plan software solutions on the market. A reliable software solution will increase the accuracy and consistency of your business plan, dramatically improving its value to your medical records management business.
Properly utilized, business plan software has the potential to transform your business plan from a throwaway business requirement to an integral strategic resource.
Look Over the Competition
Prior to launching a medical records management business within your community, it's essential to find out how you will fit in the competitive landscape. We've provided the link below to help you get a list of local competitors in your area. Just enter your city, state and zip code to get a list of medical records management businesses in your community.
Before you open up shop, make sure you know what you will offer to your customers that provides a significant advantage over your competition's offering.
Learning More About the Industry
After you've evaluated your local competitors, the next step is to learn from folks who are already in business. If you think owners of nearby medical records management businesses will give you advice, think again. The last thing they want to do is help you to be a better competitor.
Fortunately, somebody who runs a medical records management business in a location that is not competitive to you will be much more likely to talk with you, as long as they don't view you as a competitive threat. Indeed, many experienced entrepreneurs enjoy offering advice to startup entrepreneurs. In my experience, you may have to call ten business owners in order to find one who is willing to share his wisdom with you.
Where can you find somebody who runs a medical records management business who is willing to advise you because you live in different cities?
It's not that hard. Just use the handy link below and enter in a random city/state or zipcode.
Acquired Medical Records Management Businesses: Competitive Advantages
New medical records management business owners have the potential to realize earlier profits and fewer headaches when they buy a a medical records management business instead of starting one from scratch.
But there are also several competitive benefits to buying a medical records management business, starting with the presence of a recognized brand identity. Although it may cost a little more to buy an established brand, the payoff will be greater market penetration, customer loyalty and resale value.
In a competitive market, the right acquisition can be leveraged to catapult your business into a market leadership position, even if you personally lack industry credentials.
Is Franchising the Right Option?
Your odds of doing well with your venture zoom upwards if you decide to franchise rather than going it alone.
If your goal is to start a medical records management business, you should assess whether buying a franchise could simplify your entering the business.
The link below gives you access to our franchise directory so you can see if there's a franchise opportunity for you. You might even find something that points you in a completely different direction.
These additional resources regarding starting a business may be of interest to you.
If you currently own a medical records management business, these resources will come in handy:
If you came here to learn about selling to medical records management businesses, you're in the wrong place. Try these resources instead:
If you are still exploring all of your options, please browse our directory of guides below.