Question

For a would-be entrepreneur, selecting the proper form of business organization is a very important first step in the process. After some consideration and an assessment of your skills and education, you have decided to start a medical billing service that will provide services to providers in the local geographical area. Ideally, you would like to service physicians, dentists and hospitals. 1. Determine which of the three forms of business organization (sole proprietorship. partnership or corporation) would be the most appropriate for your new business. Why did you select the form of business organization that you chose? Identify at least three things that should be taken into consideration when making this selection. (4 points) 2. Based on the form of business organization that you selected, answer the following questions: a. How easy or difficult would it be for you to set up this form of business organization? (4 points) b. What types of liability would you have with this form of business organization? (4 points) C. What personal federal tax implications do you need to consider for this form of business organization? (4 points) d. What will happen to the business if something happens to you, the business owner? Will it continue in its present form? (4 points)

Answer 1

Ans: 1) Physicians is mostly a sole proprietorship like a clinic or owned a hospital, second Dentists same may have sole proprietorship and last Hospitals, it may be all in three forms may be one doctor can form this hospital, may be some doctors having partnership, or may be some groups will form a company which can rules the hospital.

if i start a medical billing service business then i would like to work with hospitals only. because i) in hospital is well manner business and all systems obviously fixed so there is more chance to grow the business. ii) my business can get more customers than other. iii) i can get some kind of stability of my business to work with hospitals. iv) security of business will be higher than other.

2) a): Difficulties to set up business:

1) Patient Education

Keeping your patients educated and informed when it comes to their billing is a challenge all providers face. Research shows that when a patient knows more about their bill (balance, payment methods, and options) they are more likely to make their payment. Quality practice management software, EHR, and billing software can help you accomplish this more effectively.

2) On-time Payments

Whether it be from the insurance company or a payment directly from the patient, making sure you get a payment in a timely fashion is sometimes difficult. Certain vendors of medical billing software offer help to increase on-time patient payments.

3) Payment Accessibility

It could be the software you are currently using or the lack of software at all but providers that offer fewer ways to make payments will see a decrease in on-time payments. Make sure you offer multiple options including online payments and credit card payments. Increasing accessibility is always a plus.

4) Quality Customer Support

Quality U.S. based support services should be offered by your medical billing software vendor to ensure your team has a solution to any operational problems or difficulty in understanding that come up. Providers who have no or little access to quality customer support will often fail to optimize their software and use it to its maximum ability.

b) liabilities:

1) Softwares: need accurate softwares to complete work

2) Tax structure: need to fullfill govt norms and pay tax regularly.

3) Office: need to form well office, pay there rent, bills

4) Registration will be compulsory

c) Federal Taxes Implications:

1) need to register for a variety of state and federal taxes before open for business. In order to register for taxes need to apply for an EIN.

2)Recording various expenses and sources of income is critical to understanding the financial performance of business. Keeping accurate and detailed accounts also greatly simplifies annual tax filing.

3)Medical billing companies are legally required to operate under federal regulations regarding health information set forth by the Health Insurance Portability and Accountability Act (HIPAA).

4)Certain state permits and licenses may be needed to operate a medical billing business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

5) Certificate of Occupancy- A medical billing business is generally run out of an office. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met

D) after the owner, any business will always going on if its formed by proper manner. systems should capable to handle the work process.

insurance of your and your business is required always, so after you your business will run smoothly.

employees are the backbone of every organization, they may be handle after you with you nominees, so nominees should be apponted.