The Ultimate Guide to Starting Your Own Medical Coding and Billing Business

If you have experience working as a medical coder or biller and you like the idea of working for yourself, you might be considering setting up your own business. The good news is that startup costs can be quite low for this type of venture, especially if you don’t plan to hire anyone else initially. How do you get started though?

What to Consider

As mentioned, costs can be kept low and because of the nature of the business, you can work from home taking care of coding and billing for other companies. You will need at the very least knowledge and experience of medical billing and coding. However, before you can secure clients, it is likely that you will need to have some type of certification. Many companies will only outsource their coding and billing to someone with a certificate from an accredited school or college.

You will need somewhere to work. If you are going to work from home, you will need a dedicated space to work in and in which you can keep all sensitive patient information secure and confidential. If you don’t have room at home, it might be worthwhile hiring office space.

In addition to your office space, you will need a reliable computer, high-speed internet, and suitable medical billing software. You will also need to pay for software security in order to ensure Health Insurance Portability and Accountability Act (HIPAA) compliance. The experts at say that HIPAA compliance is one of the most important issues to consider when setting up a medical billing or coding business. Violating the HIPAA can have severe consequences for both companies and individuals.

As well as making sure that you have the office space, equipment, and software needed to get started, you will need a business license too. Before you can operate, you must register your business and apply for your own Employer Identification Number (EIN). The type of business you are setting up will determine where you apply for your license. It will either be at the secretary of state’s office for your state or at the county clerk’s office.

Securing Clients

When your business is ready to go, you will need to obtain some clients. This means marketing your services to local hospitals, doctors’ offices, clinics, and other medical facilities. There are several ways to do this such as delivering flyers or brochures directly or by reaching out at medical conferences or other business events. Some people will contact the relevant person from the medical facility directly to ask for a meeting at which they can discuss everything they are offering and explain how their services would benefit the facility.


Many people who start up their own medical coding and billing company will begin working by themselves and taking on a small number of clients. If the business goes well and they want to expand, they can move to a larger office and hire staff. Expansion is entirely possible with this type of business; the more clients you secure, the bigger your business could become. However, should you wish to expand, you will need to learn more about being an employer and what is involved.


People who work in medical coding and billing often assume that they need to continue working for a medical facility until they retire. But with many medical providers preferring to outsource this side of their business, coders and billers have the potential to setup their own company for a low initial outlay. It is important to have a dedicated workspace, the right equipment and software, and be willing to pay for premium security.

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