How to Start a Medical Coding Business

A medical coding business takes medical records and notes from health professionals and assigns the codes necessary to pay for health insurance claims. Medical coding companies generally provide billing services, not just assigning codes, but preparing claims and forwarding them to the relevant insurance companies. Medical coding and billing professionals work as employees in healthcare practices or establish businesses in their own homes or commercial spaces. So here are tips about how to start a medical coding business.

Disclosure: This post contains affiliate links and I will be compensated when you make a purchase after clicking on my links, there is no extra cost to you

How to Start a Medical Coding Business 1



Step 1

Complete medical billing and coding training from an accredited college or university. Accreditation programs must meet curricular standards created by regional boards of education. Visit the US Department of Education’s database of employment institutions and programs. USA to research accredited schools and programs. Most accredited billing and coding programs provide courses in medical terminology. Medical billing and coding software health insurance billing procedures for public health programs.  Such as Medicaid Medicare and third party insurance companies.  Transcription and medical equipment and customer service.


Step 2

Create a leased home office or office space. You will need space to store medical transcription equipment files books and reference materials.  A desk a computer a printer a telephone a fax machine a comfortable chair and office supplies. Rent office space if you don’t have enough space in your home or if you can’t create a quiet space to work during the day. Contact local real estate agents for more information on available office space and rental costs.


Step 3

Apply for a business license, employer identification number, and register your business with the Texas Secretary of State’s Office if you are creating a limited liability company, corporation, or partnership. Visit the Harris County Clerk’s Office website if you are operating in the Houston area or at the clerk’s office that oversees the county where you live to apply for a business license or to register your business as sole proprietors.


Step 4

Buy equipment and software such as headphones, pedals, microphones, medical billing and coding reference books, medical billing software, digital recording software, medical transcription software, billing, and accounting software. Medical billing and coding equipment and software can be found online or at medical supply stores. Billing and accounting software can be found online or at office supply stores.



Enroll in an accredited program that provides training.  In the use of software for medical billing and coding medical terminology medical transcription.  And compliance with the Portability and Health Insurance Accountability Act (HIPAA).

A good preparation program provides health insurance training that teaches you how to deal with billing and codes for public and private insurance companies.  In addition, training in general business management issues, such as record keeping, taxes, and customer service, prepares you to open your business. The US Department of Education. USA Maintains a database of schools offering accredited medical billing and coding programs. These programs last from one to two years.


Office space

Medical coding and billing are ideal for a home or business office arrangement. Expect to use technology, rather than face-to-face meetings, for routine customer communications. Due to the confidential nature of medical records and HIPAA requirements, your office must be closed. Similarly, purchase security filing cabinets to protect your business records, customer documentation, and documents that contain confidential patient information.



Its target market is doctors, nurse practitioners, dentists, hospitals, surgery centers, and clinics. Find these people and organizations by direct mail and cold calling, as well as by distributing brochures and advertising in publications read by medical professionals. Increase your customer base by attending medical conferences, seminars, and trade shows, where you can introduce yourself to attendees and explain what you do. Local networking events provide additional opportunities to meet with potential clients.

Before you go, I hope this article about how to start a medical coding business is helpful for you.


Are you interested to learn more?

➡ Get FREE access to my E-BOOK + TRAINING VIDEO on My #1 Way To Make Money Online from the comfort of your own home:


Did you find this post useful… Would you be interested in an easy and detailed guide on how to make money online?
If you would, or you have questions regarding this post, let me know in comments below.
Questions? Ask in comments >>
Did you like this post/method?… Let me know in comments.

Leave a Reply

Sign Up to Get the Latest Offers

Enter Your Email Address to Receive free access today: