To avoid losing your money in a false medical billing business opportunity, the FTC advises you:
- Ask the developer to give you a wide selection of names of previous buyers, so you can choose who to call to obtain references. If the promoter provides only one or two names, be cautious: it is likely that these names are from people hired to give a favorable testimony. It is best to interview each reference personally, preferably at the site where the business operates, to get a better idea of how it is operated. Ask for the names of your clients and a description of their operations.
- Check with medical claim processing organizations or medical billing businesses and with doctors in the community in which you reside. Ask them about the subject and the medical billing industry. What needs to be covered exist or what is the demand for this type of work? How much work does medical billing involve? What type of training is required? Do you know anything about the promotion in which you are interested or the promoter of it?
- Check with your state’s Attorney General’s office, the local consumer protection agency and the Better Business Bureau in your area and where the company is located to find out about unresolved complaints regarding the business opportunity or the promoter of it. Although the existence of complaints can alert you to possible problems, the lack of complaints does not necessarily mean that the company is legitimate or that it complies with legal regulations. Some unscrupulous companies may resolve consumer complaints before being registered with the BBB, changing their name or moving to avoid detection.
- If the medical billing business opportunity is sold to you by another company’s software program, check with the other company to find out if the company’s representatives are aware of any problems with the medical billing promoter.
- Consult a lawyer, accountant or other business adviser before signing an agreement or making an advance payment. A lawyer can review the developer’s contract and advise him on the best way to proceed.