Jul 267 min read

How to Start a Dental Billing Company

Hello, I’m Sarah Beth Herman, the CEO of Dentistry Support, and I am finally sharing my expertise on how to start a dental billing company. With over 25 years of experience and five successful businesses under my belt, including our sister company, Dentistry Support Academy, I have accumulated a wealth of knowledge on dental billing. This free training will guide you through the essential components of building a robust and thriving dental billing company.

Understanding Dental Billing

How Does Dental Billing Work?

Dental billing involves submitting and following up on claims with dental and medical insurance companies to receive payment for services rendered by a dentist. This process requires understanding various coding systems (medical & dental), insurance policies, and regulatory requirements, such as HIPAA compliance. Efficient dental billing ensures that dental practices get paid promptly and accurately, which is crucial for maintaining their financial health.

Dental billing is a multifaceted process that begins when a patient receives dental services. The billing process involves several steps:

Patient Registration: Collecting patient information, including insurance details.
Verification of Benefits: Confirming the patient's insurance coverage and benefits.
Service Coding: Using the correct dental codes to describe the services provided.
Claim Submission: Sending the claim to the insurance company for reimbursement.
Follow-Up: Tracking the claim status and addressing any issues or rejections.
Patient Billing: Billing the patient for any remaining balance after insurance payment.
Closing the Revenue Cycle: Your job is to learn this, know this, and master this.
Refining and Fine Tuning your Best Practices!

Each step requires precision and attention to detail to ensure timely and accurate reimbursement.

Key Steps to Starting Your Dental Billing Company

1. Learn Dental Billing

Before diving into the business, learning dental billing is essential. Our online school Dentistry Support Academy offers

PACE-approved courses that provide comprehensive training in dental billing. We also provide CE courses for professionals in dentistry. These courses cover everything from understanding dental codes to navigating insurance policies and managing patient billing queries.

In-Depth Learning:

Dental Codes: Learn the intricacies of CDT (Current Dental Terminology) codes used to describe dental procedures.
Insurance Policies: Understand the different types of dental insurance plans and how they affect billing.
Billing Software: Get hands-on experience with billing software that streamlines the billing process.
Regulatory Compliance: Ensure you are up-to-date with regulations like HIPAA that protect patient information.

2. Business Fundamentals

Starting a dental billing company requires more than just technical knowledge. Here are some fundamental steps to consider:

Open a Savings Account: Ensure you have a dedicated business account to manage your finances effectively. This helps in keeping personal and business finances separate, simplifying accounting and tax filing.
Mindset and Intuition: Cultivate a positive mindset and learn to trust your intuition. These qualities are crucial when making business decisions. A strong mindset helps you navigate challenges, while intuition guides you in making the right calls.
Marketing Understanding: Grasp the nuances of dental marketing. Understanding marketing strategies from social media to SEO can help you attract and retain clients. Marketing is not just about promotion; it's about communicating your value proposition to potential clients and solving a problem.

3. Stay Updated with Trends and Technology

The dental billing industry constantly evolves, with new technologies and trends emerging regularly. Staying updated with these changes is crucial for maintaining your competitive edge. Join industry forums, attend webinars, and continuously educate yourself on the latest advancements.

Technological Advancements:

Electronic Health Records (EHR): Integrate EHR systems to streamline patient information management.
Cloud-Based Billing Software: Utilize cloud-based solutions for real-time access and collaboration.
Artificial Intelligence (AI): Leverage AI for predictive analytics and fraud detection.

4. Consider HIPAA Compliance

HIPAA compliance is a critical aspect of dental billing. Ensure that your business adheres to all patient data privacy and security regulations. This will not only protect your clients but also establish your credibility in the industry.

HIPAA Best Practices:

Data Encryption: Use encryption to protect patient data during transmission and storage.
Access Controls: Implement strict access controls to limit data access to authorized personnel only.
Regular Audits: Conduct regular audits to ensure compliance and identify potential vulnerabilities.

5. Hiring and Training

Hiring the right team is vital. Look for individuals with experience in dental billing and provide them with ongoing training to keep their skills sharp. Regular training sessions can help your team stay updated with the latest industry practices and technologies.

Recognizing Business Responsibilities

When starting a business, you must recognize that your responsibilities extend beyond making money. You must also support your industry, provide value, and lead with integrity. Here’s how to expand your business responsibly:

Provide the Service: Offer high-quality services to your clients.
Teach the Service: Educate others in your industry through training and resources.
Provide Free Resources: Share knowledge and tools to help others succeed.
Create Jobs: Contribute to the economy by creating employment opportunities.
Expand Your Services: Continuously innovate and grow your offerings.
Run Ethically: Maintain high ethical standards and prioritize people over profits.
Care for Your Industry: Lead by example and foster a positive impact within your industry.

The Importance of a Support Team

To run a successful business, you need a strong support team. Surround yourself with professionals who can handle areas where you may not be well-versed. Key team members include:

Lawyers: Ensure legal compliance and handle any legal matters.
Accountants: Manage your finances, taxes, and accounting needs.
Marketing Team: Develop and execute effective marketing strategies.
IT Support: Maintain your technological infrastructure and ensure data security.

Essential Business Departments

Running a business requires more than just knowledge; you need to be organized and have the right departments in place:

Operations: Manage day-to-day business activities.
Finance: Handles budgeting, accounting, and financial planning.
Human Resources: Oversee hiring, training, and employee relations.
Sales and Marketing: Drive revenue growth and brand awareness.
Customer Support: Provide excellent service to retain and satisfy clients.

Offsite Team Management

If you have an offsite team, it’s crucial to have proper management systems in place:

Screen Tracking and Recording: Monitor productivity and ensure accountability.
Documentation Processes: Establish clear processes for documenting work.
Work Recording: Keep records of work completed to protect your business and clients.

Understanding Dental Billing Metrics to Set You Apart

At Dentistry Support, we pride ourselves on maintaining stringent performance metrics that set us apart from the competition. Our commitment to excellence is evident in our goal of minimizing claims aging over 30 days, ensuring that our clients receive timely payments. We work diligently on every claim every 14 days, demonstrating our dedication to efficiency and accuracy. Unlike many competitors, we do not charge a percentage of collections, making our services more affordable while providing unbeatable value. We confidently match or beat any competitor's price because we believe in the superior quality of our work. Our trust in our team's expertise and dedication allows us to deliver exceptional service consistently, reinforcing our position as the best in the industry. This unwavering commitment to high standards and client satisfaction sets Dentistry Support apart.

Team Development:

Skill Assessment: Regularly assess your team's skills to identify training needs.
Continuing Education: Encourage your team to pursue continuing education opportunities.
Performance Feedback: Provide constructive feedback to help your team improve and grow.

Building a Strong Client Relationship

Handling Mistakes

Mistakes are inevitable, but how you handle them can make a significant difference. Approach errors transparently, communicate openly with your clients and work on solutions promptly. This builds trust and strengthens your relationship with your clients.

Error Management:

Immediate Acknowledgment: Acknowledge mistakes as soon as they are identified.
Open Communication: Discuss the issue with the client and outline the steps to rectify it.
Preventive Measures: Implement measures to prevent similar mistakes in the future.

Position of Strength

When clients question your work, approach the situation with strength and knowledge. Show them you are well-versed in dental billing and can back your work with industry standards and regulations. This confidence reassures clients of your expertise and reliability.

Demonstrating Expertise:

Detailed Explanations: Provide detailed explanations of your billing process and decisions.
Industry Standards: Reference industry standards and best practices to support your work.
Client Education: Educate your clients about the complexities of dental billing to help them understand your role better.

Services Offered by Dentistry Support

At Dentistry Support, we offer a wide range of services beyond dental billing. Here’s a brief overview:

Mentoring: One-on-one sessions and group mentoring to guide you through your business journey. Our mentoring programs are designed to provide personalized guidance and support, helping you overcome challenges and achieve your goals.
Consulting: Business and personal consulting services to help you achieve your goals. We offer comprehensive consulting services tailored to meet the unique needs of your dental practice.
Support Services: Comprehensive support for dental practices, including administrative tasks and client management. Our support services are designed to streamline your operations, allowing you to focus on providing quality care to your patients.
Training Programs: PACE-approved courses through Dentistry Support Academy, focusing on dental billing and other essential skills. Our training programs are designed to equip you with the knowledge and skills needed to excel in the dental billing industry.

Encouragement and Final Thoughts

Starting a dental billing company is rewarding, requires dedication, continuous learning, and a positive mindset. Remember, businesses are built on multiple facets: training, teaching, growing, and evolving. Embrace these components, and you will be well on your way to building a successful dental billing company.

Final Encouragement:

Stay Positive: Maintain a positive attitude and approach challenges as opportunities for growth.
Continuous Learning: Commit to continuous learning and self-improvement.
Embrace Change: Be open to change and adapt to new technologies and industry trends.
Build Relationships: Build strong relationships with your clients and team members.

By following these steps, leveraging the resources, and examining the examples of services offered by Dentistry Support and Dentistry Support Academy, you can build a strong, reliable, and thriving dental billing company. Stay positive, keep learning, and remember: the key to success lies in your dedication and continuous effort. In our upcoming podcast episode airing this Monday, I'll be diving deep into these topics, sharing detailed perspectives and personal experiences that have shaped my approach to building a successful dental billing company. We'll explore the intricacies of selecting the right software to streamline operations, the importance of recognizing our broader responsibilities within the industry, and the essential team members every business should have. I'll also discuss the importance of organization and effective management of offsite teams, ensuring that you have all the tools and knowledge needed to thrive. Tune in to gain valuable tips, hear real-life stories, and get inspired to lead your business with integrity and passion.

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Disclaimer:

To learn more about Sarah Beth Herman, the author of all free training content you can read her bio here. These materials are intended to provide helpful information to dentists and dental team members. They are in no way a substitute for actual professional advice based on your unique facts and circumstances. This content is not intended or offered, nor should it be taken, as legal or other professional advice. You should always consult with your own professional advisors (e.g. attorney, accountant, or insurance carrier). To the extent, Dentistry Support ®has included links to any third-party website (s), Dentistry Support ® intends no endorsement of their content and implies no affiliation with the organizations that provide their content. Further, Dentistry Support ® makes no representations or warranties about the information provided on those sites. You can view our privacy policy and terms and conditions by clicking those pages in the footer of our website.