American Business Systems

American Business Systems (ABS) provides entrepreneurs with the opportunity to build and operate their own medical billing and healthcare revenue-cycle management business from home. The company has been involved in medical billing since 1987 and began offering its business opportunity in 1994.

The ABS model is designed around helping healthcare providers—particularly physicians and medical practices—improve their cash flow by outsourcing billing, claims processing, coding, credentialing, compliance, and other administrative functions.

Rather than opening a medical office or providing clinical care, an ABS Business Owner operates a B2B service business, working with healthcare providers and practices that need assistance managing the financial and administrative side of their businesses.

ABS describes its model as a way to enter the healthcare industry without requiring a medical degree, healthcare license, physical office, inventory, or specialized medical background.

What Does an ABS Business Owner Actually Do?

The core business is building relationships with healthcare providers and offering them outsourced medical billing and related revenue-cycle services.

Medical practices generate revenue by treating patients, but getting paid by insurance companies and patients involves a complicated administrative process. Claims must be submitted accurately, payments tracked, rejected claims addressed, patient balances managed, and numerous regulatory and administrative requirements maintained.

An ABS Business Owner becomes the service provider responsible for helping practices navigate this process.

The business can include:

• Electronic medical claim filing
• Medical billing
• Revenue-cycle management
• Practice-management services
• Electronic medical records
• Medical coding
• Coding review and auditing
• Medical credentialing
• HIPAA/compliance tracking
• Payment processing
• Patient communication and engagement
• Telemedicine-related solutions
• Digital records management
• Additional healthcare technology and administrative services

ABS provides access to a suite of technology and service solutions that allow Business Owners to offer multiple services rather than relying exclusively on basic claims processing.

How the Revenue Model Works

The primary revenue model is based on recurring B2B relationships with healthcare providers.

ABS states that its Business Owners generally charge doctors a percentage of the payments received from insurance companies and patients, with 5%–10% cited as an average billing rate. ABS Business Owners typically generate approximately $25,000–$50,000 in gross annual revenue per doctor, although actual results can vary substantially depending on the type and size of practice, services provided, pricing, client retention, and the owner's ability to acquire accounts.

This recurring-revenue characteristic is one of the more attractive aspects of the model.

For example, rather than selling a one-time product to a physician, an owner can develop an ongoing relationship in which the practice continues to use the billing company's services month after month.

As the client base grows, the owner can potentially increase revenue without having to establish additional physical locations.

Low Overhead, Home-Based Model

ABS is designed to be operated from a home office. There is no requirement to lease retail space, purchase inventory, or operate a storefront.

The company's cloud-based systems allow Business Owners to work from virtually anywhere with an internet connection. ABS states that its systems can be accessed from PCs, Macs, iPads, and Android devices.

This makes the opportunity particularly interesting for entrepreneurs who want:

• A home-based business
• Low physical overhead
• A B2B business model
• Recurring revenue
• The ability to work remotely
• A business that can potentially be started part-time
• The ability to scale by adding clients and employees

The business can initially be operated by the owner, with the potential to hire billers, processors, sales representatives, or other personnel as the client base grows.

What's Included in the Investment?

The ABS Business Package includes a substantial collection of technology, training, marketing, and support resources.

Medical Billing & Healthcare Technology

Business Owners receive access to ABS's web-based technology platform, including:

• Electronic medical claims filing
• Practice management
• Electronic medical records
• Patient portal functionality
• Clearinghouse services
• Telemedicine capabilities
• Medical coding resources
• Compliance tools
• Credentialing services
• Additional healthcare-related technology

Training

ABS provides live, one-on-one online training designed to teach new owners both the technical and business-development sides of medical billing.

Training covers areas such as:

• Medical billing fundamentals
• Using the ABS technology platform
• Claims processing
• Working with healthcare providers
• Business development
• Sales
• Marketing
• Client acquisition
• Client retention
• Building a medical billing practice

No previous medical billing experience is required. Upon completing its training, owners receive a Certified Medical Revenue Manager (CMRM) certification through the Medical Revenue Management Association of America.

Marketing & Client Acquisition

This is arguably the most important component of the ABS model.

ABS provides a structured marketing system called its Jumpstart Marketing System, designed to help new owners begin generating conversations with healthcare providers.

The company teaches more than a dozen marketing approaches, including:

• Direct mail
• LinkedIn marketing
• Social media
• Business networking
• Healthcare expos
• Lunch-and-learns
• Lead magnets
• Automated follow-up
• Working with medical sales representatives
• Getting past office gatekeepers
• Building relationships with physicians
• Positioning yourself as a trusted advisor

Ongoing Support

One of the major selling points of ABS is its emphasis on long-term support.

Business Owners receive free lifetime support, including access to ABS support personnel for questions involving marketing, technology, client retention, and business development. ABS also provides an on-demand support website and ongoing educational resources.

The company has been operating its program for more than three decades, giving prospective owners access to an established network of Business Owners and an experienced support organization.

No Territory Restrictions

Unlike a traditional franchise, ABS does not assign an exclusive geographic territory.

An owner can market and provide services to healthcare providers throughout the United States. ABS says there are no territorial marketing restrictions and no royalties.

This creates both an advantage and an important consideration.

The advantage is that an owner isn't restricted to a specific geographic area and can pursue opportunities virtually anywhere.

The consideration is that the owner does not have an exclusive protected territory. Multiple ABS Business Owners may therefore market to providers in the same geographic market.

Growth Potential

The business is designed to be scalable.

An owner can begin by handling billing and client relationships personally and then build a team as the number of accounts increases.

Potential growth paths include:

Stage 1 — Owner-operated

The owner acquires a small number of physician clients and performs much of the work personally.

Stage 2 — Build a team

As the client base grows, the owner can hire medical billers and other personnel to handle day-to-day processing.

Stage 3 — Expand services

The owner can introduce additional services such as coding, credentialing, compliance, practice management, and other revenue-cycle solutions.

Stage 4 — Scale the client base

The owner focuses increasingly on business development, sales, client relationships, and management while the team handles more of the operational workload.

ABS showcases examples of owners who have grown substantially beyond a one-person operation. For example, the company highlights one Business Owner who reports having 33 employees, 43 accounts, and approximately $2 million in annual revenue. That is an individual success story, however, and should not be interpreted as typical or guaranteed performance.

Key Advantages

Low initial overhead:
The business can be operated from home without a storefront, inventory, or significant physical infrastructure.

Healthcare industry:
Medical billing is a necessary administrative function for healthcare providers, creating an ongoing need for billing and revenue-cycle services.

Recurring revenue potential:
Clients can generate ongoing monthly revenue rather than requiring constant one-time sales.

Multiple revenue streams:
Owners can offer billing alongside coding, credentialing, compliance, EMR, practice management, and other services.

No royalties:
ABS currently advertises a one-time $35,000 investment without ongoing royalty payments.

No territory restrictions:
Owners can market throughout the United States.

Extensive training:
The program is designed for people without prior medical billing experience.

Lifetime support:
ABS provides ongoing technical, marketing, and business support.

Scalability:
The model can potentially grow from a solo operation into a larger medical billing company with employees.

30-day money-back guarantee:
ABS currently advertises a 30-day, 100% money-back guarantee. Prospective buyers should review the exact agreement and terms governing that guarantee before relying on it.