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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:
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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