Modern Medical Management, LLC: Case Study
Project: How to Start a Medical Billing Business
Modern Medical Management, LLC
The following is a proposal to start a medical billing business. This opportunity has arisen as a result of my employer, Dr. Herbert Rosen’s decision to outsource his medical billing needs. As he has been satisfied with the quality of my work over the past two years, he has asked me to handle his billing and will introduce me to additional doctors who have similar objectives at Columbia Presbyterian where he currently practices.
First, I have decided to name my company Modern Medical Management, LLC (MMM). Hereafter, please find the details of my objectives, the company 's mission and my vision for the future.
My immediate goals are:
1. Create the …show more content…
Rosen’s average annual billing volume is 2,400 forms per year (an average of 10 billed consultations per day and he works 5 days a week during 48 weeks per year). I intend to offer him preferential pricing of $7 per form for the first three years as he has provided me with this opportunity. All other clients will be billed at an average of $8.50 per form. I assumed that it will take me six months to add my first additional client and another client three months later. I also assumed that I will add two additional clients in the second year and three in the third year. Finally, I assumed that each client has the same average amount of billing activity (forms written) as Dr. …show more content…
Investment Needs
MMM will acquire basic office equipment such as a computer, multifunction printer, copier, scanner and facsimile as well as a telephone system. The medical software for billing will be the largest investment ($1,800). I also will need coding books (ICD-9 and CPT), and some furniture (desk, table, chairs, filing cabinets and office supplies). I will also subscribe to an internet and telephone plan. Finally, initial working capital of $8,000 will be required in order to provide for the deposit for the office lease as well as cover all offices expenses until Dr. Rosen starts paying MMM for the services rendered.
As a result, I have determined that I will need a capital of at least $12,350 to start the business. I will obtain this amount by making a withdrawal from my savings account. The investments are assumed to be amortized over five years.
The tables below detail the company 's forecast investments, revenues, expenses and profit.
Investments
Notes
Modern Medical Management, LLC
The following is a proposal to start a medical billing business. This opportunity has arisen as a result of my employer, Dr. Herbert Rosen’s decision to outsource his medical billing needs. As he has been satisfied with the quality of my work over the past two years, he has asked me to handle his billing and will introduce me to additional doctors who have similar objectives at Columbia Presbyterian where he currently practices.
First, I have decided to name my company Modern Medical Management, LLC (MMM). Hereafter, please find the details of my objectives, the company 's mission and my vision for the future.
My immediate goals are:
1. Create the …show more content…
Rosen’s average annual billing volume is 2,400 forms per year (an average of 10 billed consultations per day and he works 5 days a week during 48 weeks per year). I intend to offer him preferential pricing of $7 per form for the first three years as he has provided me with this opportunity. All other clients will be billed at an average of $8.50 per form. I assumed that it will take me six months to add my first additional client and another client three months later. I also assumed that I will add two additional clients in the second year and three in the third year. Finally, I assumed that each client has the same average amount of billing activity (forms written) as Dr. …show more content…
Investment Needs
MMM will acquire basic office equipment such as a computer, multifunction printer, copier, scanner and facsimile as well as a telephone system. The medical software for billing will be the largest investment ($1,800). I also will need coding books (ICD-9 and CPT), and some furniture (desk, table, chairs, filing cabinets and office supplies). I will also subscribe to an internet and telephone plan. Finally, initial working capital of $8,000 will be required in order to provide for the deposit for the office lease as well as cover all offices expenses until Dr. Rosen starts paying MMM for the services rendered.
As a result, I have determined that I will need a capital of at least $12,350 to start the business. I will obtain this amount by making a withdrawal from my savings account. The investments are assumed to be amortized over five years.
The tables below detail the company 's forecast investments, revenues, expenses and profit.
Investments
Notes