Be cautious with work-at-home medical billing offers

Not a week goes by that we don't get calls here at the office asking about medical billing work-at-home deals. If you're looking for a home-based business that can help you pull in $50,000 or more at home using your computer, advertisements for medical billing centers may be appealing. But before you part with your money, consider this: The Federal Trade Commission has brought charges against several companies for misrepresenting the earnings potential of medical billing centers, and failing to provide certain key pre-investment information the law requires.

HOW THE SCAM WORKS: You can find ads for prepackaged businesses known as billing centers in newspapers, on television and on the Internet. When you respond, you'll get a sales pitch. You'll hear that there's a crisis in the health care system, due partly to the overwhelming task of processing paper claims, that electronic claim processing is the solution and that because only a small percentage of claims are transmitted electronically, the market for billing centers is wide open.

These promoters also may tell you that many doctors who process claims electronically want to "outsource" or contract out their billing services because it will save them money. They'll promise that you can earn a substantial income working full or part time, providing services like billing, accounts receivable, electronic insurance claim processing and practice management to doctors and dentists. They also may assure you that no selling or experience is required, and that they will provide customers or qualified salespeople to find clients for you. "The reality" is you will have to sell, these promoters rarely provide experienced sales staff or contacts within the medical community.

The company will follow up by sending you promotional materials that typically include a brochure, application, sample diskettes, a contract (licensing agreement), disclosure document, and in some cases, testimonial letters, videocassettes, and reference lists. For your investment of $500 to $8,000, they promise software, training and technical support. And the company will encourage you to call its references. If you do make the phone calls, be aware that you may be talking to a "singer" or a "shill," a person hired by the promoter to give a favorable report on the business.

THE BITTER PILL: The FTC has found that few consumers purchasing a medical billing business opportunity are able to find clients, start a business and generate revenues, let alone earn a substantial income and recover their investment. Competition in the medical billing market is very strong among a number of large and well established firms.

HOW TO PROTECT YOURSELF: Taking certain precautions can help you minimize your risk of losing money to a medical billing business opportunity.

Check out the company with the Florida Division of Consumer Affairs at 1-800-435-7352 or the FTC at 1-877-382-4357.

Call the secretary of state where the company is headquartered to determine how long it has been in business. Also find out if that state has a consumer protection department and call to check and see if there have been complaints filed against the company.

Get all earnings claims in writing. Insist that the promoter give you written substantiation. Be sure it includes the number and percent of others who have earned at least as much as the promoter claims. If the promoter hesitates or refuses, walk away from the deal. Don't believe what was said about sales, profits or income.

Be skeptical of past success stories. Don't rely solely on the names of potential investors about earnings claims. Ask the promoter to give you the names of all or many previous purchases so that you can pick and choose who to call. When speaking to references, ask them for the names of their clients and details of their operations. You also might consider meeting with references in person. If the promoter or the references hesitates or refuses, walk away from the business.

WHERE TO COMPLAIN: If you think you've been defrauded in a medical billing business opportunity, contact the company and ask for your money back. Let the company know you plan to notify law enforcement and other officials about your experience. Keep a record of your conversations and correspondence. If you send documents to the company, make sure you send copies, not originals. Send correspondence by certified mail and request a return receipt to document what the company received. To file a complaint, call the FTC toll free at 1-877-382-4357.

Information for this article was gathered from the FTC.

-- Dottie Teuton is executive director of the Better Business Federation. Information on this and other business/consumer questions may be obtained from the office by calling in Citrus County at 795-3547 or Marion County 307-9222. Or at the office at 6460 W Gulf to Lake Highway, Crystal River, FL 34429, or contact by e-mail at betterbusifed@vipweb.net.

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