New Marketing Offer

     Medical billing services are often looking for new accounts and new ways to market their services.  We offer three ebooks on marketing to help these business owners find new opportunities.  So we are always looking for new opportunities to teach to our readers.  This week we got a call from a company who asked if we were interested in getting government contracts for medical billing.  We weren’t sure if it was something we would be interested in or not but thought we should learn about it to offer the information to our readers.  We got the basic info and made an appointment for a fifteen minute phone call to hear the details.  Here is what we found.

This was a private company that offered the service of completing the hundreds of pages of application necessary for the government to offer you jobs.  Contracts were granted for 5 years with the opportunity to renew 3 times for 5 year periods.   The company would keep your applications up to date and renewed for 20 years.  They guaranteed you would get work or our money was refunded.  We were asked if we could promise to take on 2 new accounts in a six month period.  We were told that we didn’t need to bid on these jobs.  As a preferred provider the government and some city or county owned organizations were required to utilize preferred vendors.  When medical billing services were required they would get a list with your name at the top and you would get the job.  You could charge between 8% to 13%.  Their charge was $5500.00 for their service.

They also told us that there was only one GSA preferred provider in New York State and they were in the NYC area.  There was a great need for medical billing providers and this one company couldn’t fulfill all the needs.  We asked if we were limited to the NYS area and were told no, they could put us on the national list.

Red flags went up at some of the things we were told.  Some things just didn’t make sense.  The man we were speaking with happened to mention the name of the one preferred provider in NY so we told him we would think about it and he could call back on Friday.  We “googled” the name he mentioned of the other service and sent an email inquiring about the GSA contract.  A few minutes later we got back an email saying don’t do it.  It’s a scam.  She spent $8000 and got nothing in jobs and no inquiries.  She also said that she had to bid for the work and that there was only one instance in 18 months that she could bid on and she didn’t get the bid.  So beware of this tactic.  It may have worked out for some and we would love to hear about anyone else’s experiences.   If you have had any experience with this type of work please share your information.  We can all help each other.


5 Responses to “New Marketing Offer”

  1. DOREEN Says:

    I own a medical billing company in Florida. I received this exact call and was told the same thing that my company would be the only preferred one in my area. I also looked into this and found all negative info regarding this “offer”. I am very glad to see that you have posted this to help others not to be taken in. This company will now not stop calling my company in spite of my strong demands that they stop.

  2. Elizabeth Says:

    I received a similar call – they wanted $7,500, which was ridiculous! I filled out the forms myself and went to PTAC, (works out of NJIT here in NJ, but there are probably other organizations in other states) which offers workshops on how to complete the forms to check that I had completed them correctly. I had, and I am now entered into their database so that I get a list of government bids, etc. in my field. I believe the cost was free or under $50.

    I found out about the PTAC from the WBC and the Women’s Center for Entrepreneurship Corp (WCEC). You may also be able to find agencies that assist in government contracting for low or no cost through SCORE or the SBA.

  3. pmrnc Says:

    Another red flag is that they say you can charge 8-13%?? You would think the “Government” would know that would be considered illegal fee-splitting in NY? I have done local govt billing for prison, jail and I also was able to get a contract with a small CAP just logging authorizations. I wouldn’t PAY for this as you can find these on your own. I also wouldn’t want a FEDERAL govt contract.. I am happy getting paid from the clients I have..

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