For Subscribers

Does It Fit the Bill?

Here's how to tell if medical billing is a viable business opportunity for you.

By Paul Edwards

Opinions expressed by Entrepreneur contributors are their own.

Question: I've heard that medical billing is a growing area for entrepreneurs. Do you think it's still hot?

Answer: Although an estimated 6 out of 10 medical offices have switched to software that enables them to handle billing internally, medical billing is still outsourced and thus can be a rewarding home business. But it won't work everywhere. Many doctors want to keep their billing in-house or at a nearby billing service. So one way to predict whether you should start a medical billing business is to determine how many doctors and existing billing services are nearby.

Merlin Coslick, founder of the Electronic Medical Billing Network of America, explains how to gauge the market: "A 10-square-mile area with 1,000 doctors will support two to three medical billing services." He advises counting the companies listed under "Billing" and "Insurance Claim Services" in your local Yellow Pages and dividing the number by four. Only 1 in 4 of these will be competitors. The others will be closed down or have all the clients they can handle.

Continue reading this article — and all of our other premium content with Entrepreneur+

For just $5, you can get unlimited access to all Entrepreneur’s premium content. You’ll find:

  • Digestible insight on how to be a better entrepreneur and leader
  • Lessons for starting and growing a business from our expert network of CEOs and founders
  • Meaningful content to help you make sharper decisions
  • Business and life hacks to help you stay ahead of the curve

Related Topics

Editor's Pick

Everyone Wants to Get Close to Their Favorite Artist. Here's the Technology Making It a Reality — But Better.
The Highest-Paid, Highest-Profile People in Every Field Know This Communication Strategy
After Early Rejection From Publishers, This Author Self-Published Her Book and Sold More Than 500,000 Copies. Here's How She Did It.
Having Trouble Speaking Up in Meetings? Try This Strategy.
He Names Brands for Amazon, Meta and Forever 21, and Says This Is the Big Blank Space in the Naming Game
Business News

American Airlines Sued After Teen Dies of Heart Attack Onboard Flight to Miami

Kevin Greenridge was traveling from Honduras to Miami on June 4, 2022, on AA Flight 614 when he went into cardiac arrest and became unconscious mid-flight.

Leadership

How to Detect a Liar in Seconds Using Nonverbal Communication

There are many ways to understand if someone is not honest with you. The following signs do not even require words and are all nonverbal queues.

Leadership

Alternatives to Layoffs in Tech: Maintaining a Stable Workforce

Layoffs are not always the best option and can often be detrimental to the organization as a whole. Companies can keep a steady workforce while still controlling expenses and adapting to market changes by thinking about possible alternatives to layoffs.

Money & Finance

How to Choose a Credit Card for Your Startup

When considering the best business credit card for you, take time to weigh the rewards and benefits of each one to determine which card will grow with your business and understand your needs.

Marketing

Entice Customers to Make Additional and Larger Purchases Using These Two Tactics

With transparency, permission, and an eye on the customer's perception of value, you can knock both cross-selling and upselling out of the park.

Leadership

Female CEO Shares Her Experience Leading an AI Company

Kerry Goyette blazed a trail by leveraging her behavioral scientist roots to reimagine a new use for AI.