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STEPS YOU CAN TAKE TO PROTECT YOURSELF WHEN LOOKING FOR A MEDICAL BILLING OPPORTUNITY
Medical billing opportunities, medical billing software sales, and other medical billing websites, medical billing books, etc.. should all be evaluated. Take the following advice:
Here is an example of medical billing gone wrong: These medical billing individuals and two corporations, operating in Reno, Nevada, were cited by the Federal Trade Commission as part of "Project Housecall," have agreed to settle FTC charges. According to the terms of the settlement, each of the individual defendants must post a $200,000 performance bond before participating in the sale of any franchise or business venture. In its complaint, the FTC alleged that the defendants misrepresented, among other things, the earnings potential of their medical and dental billing business opportunity, and violated the FTC's Franchise Rule. In addition to the bond requirement, the defendants are prohibited from future violations of the Frachise Rule.
In December 1997, the FTC announced “Project Housecall” -- a federal/state mini-sweep to crack down on the bogus practices of medical billing business opportunity operators. The FTC filed its complaint in federal district court naming Steve Shelton, Lynne Shelton, Gary White, Leslie White, National Electronic Healthcare Corporation, and Electronic Healthcare Products, Inc. According to the FTC, the defendants sold billing center packages, consisting of the defendants’ software, training and other assistance to consumers who were supposed to start a business and earn substantial income by electronically processing insurance claims for doctor and dentist clients. The complaint alleged that the defendants misrepresented the earnings potential of their medical and dental billing center opportunities. They also violated the Franchise Rule by failing to provide prospective purchasers with a complete and accurate disclosure document or an earnings claim document.
- Be skeptical about earnings claims that sound too good to
be true. The "bait" on the "hook" of
a business opportunity scam is that a person with no
experience may be able to work only a few hours a week
and earn $50,000, $100,000 . . . or more . . . a year.
The truth is that making money almost always requires
hard work . . . and lots of it.
- Exercise caution when it comes to newspaper and magazine
ads that contain little more than glowing promises and an
"800" number. This is very likely a
"come-on" pitch to lure you into calling a
high-pressure telemarketing boiler room operation! Keep
in mind that just because an ad appears in a reputable
newspaper or magazine does not mean that the information
it contains is accurate or legitimate.
- Obtain and review the required disclosure document before
money changes hands. Keep in mind that business
opportunity and franchise promoters are required to
present you with a disclosure document before you sign a
contract or pay a fee. If this document is not made
readily available, beware!
- Make sure that the business opportunity has complied with
applicable state registration laws. Even if a business
opportunity promoter complies with the laws in your state
governing such deals, there is no guarantee that you will
make money. However, it is one easy way to screen out
bogus operators who are trying to "fly below
radar" in order to evade detection by regulators.
- Talk to current investors . . and watch out for
"singers." You should always take the time to
speak with several people who are current investors in
the business opportunity that you are considering. The
disclosure document must contain a list of the business
opportunity's current operators. But be on your guard! A
scheming promoter of a bogus business opportunity may
line up "singers" who provide phony
testimonials. You should visit their business sites, as
well.
- Research the business and the market. Make sure that you
have a clear grasp of how the business opportunity will
work and what demand (if any) there is likely to be in
your territory. Don't rely only on glowing promises from
telemarketers who claim that consumers are clamoring to
get your product. In one case where a business
opportunity claimed to have a "worst case" net
return of $1,220 a month, investigators found that the
investor who was doing the best only made about $200-$300
monthly.
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