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Physicians 1st Billing and Claims

Company Summary

We are currently organized as a partnership, being formed in October, 1998.

Physicians 1st Billing and Claims and the logo shown on the cover of this plan are trade marked through the U.S. Department of Commerce Patent and Trade Mark Office. The trademark covers Medical Practice Management and Reimbursement Consulting.

2.1 Company Ownership

The two individuals forming this partnership are John and Mary Biller, a husband and wife team.

John’s experience consists of three years of teaching experience, 13 years managerial experience in the Building Materials industry, and 12 years as a father. As a manager, John gained experience in marketing, back-office operations, sales, and managing people. John will use this experience in managing the Marketing and Sales departments.

Mary’s experience consists of 12 years as a mother and four years teaching experience. As a mother, wife, and a patient, Mary has extensive experience filling out and filing medical insurance claims. This experience has given her valuable insight into the workings of the Health Insurance industry. Mary’s experience as a teacher has taught her the skills of attention to detail, organization, and the importance of timeliness. Mary will use this experience to manage the Training and Clerical Administration departments. John and Mary will jointly assume responsibility of the Accounting and Data Entry departments.

2.2 Start-up Summary

Physicians 1st Billing and Claims start up will focus on John and Mary working full-time in the business.

John’s main duties will center on marketing/sales, purchasing, and data entry. Mary’s main duties will center on data entry, clerical administration, and training. John and Mary will jointly assume the accounting responsibilities. The children, Erika and Matthew, will work when needed in data entry and housekeeping. The entire Biller family is dedicated to ensuring the success of Physicians 1st Billing and Claims.

John and Mary have decided to purchase a business opportunity package offered by Claim Systems Inc. The price of this package includes: state of the art medical billing and accounting software, unlimited training for the first six months, two years of 24-hour technical support, emergency support service, and a full-featured marketing package. The price of the package is $5,000.00 plus $45.00 for shipping and handling. Optional dental billing software can be purchased for $900.00 plus shipping. This software will be added at a later date. An additional deposit of $400.00 will be included at time of purchase of the package to secure the rights to become a franchise once Claim Systems receives licensing from the State of Indiana. At such time as Claim Systems receives this approval, Physicians 1st Billing and Claims will pay an additional $1,595.00 for ownership of franchise rights from Claim Systems. The benefits of this will allow us to advertise nationally and establish name recognition.

John owns a Pentium II Gateway computer with ink-jet printer and a scanner that will be utilized for the business. The following additional office equipment will be purchased: a Pentium computer, an ink-jet printer, a fax machine, assorted phone and communications equipment, a chair, a copy machine, accounting software and misc. office supplies.

John and Mary are investing $9,640 of their own capital in the business, and are looking for a four-year loan for an additional $16,000 which they feel will be necessary to successfully start Physicians 1st Billing and Claims.

Medical billing business plan, company summary chart image

Start-up Expenses
Legal $200
Office Supplies Stationery $200
Furniture $500
Business Opportunity $6,040
Insurance $200
Rent $50
Software $69
Expensed Equipment $345
Other $2,000
Total Start-up Expenses $9,604
Start-up Assets
Cash Required $16,000
Other Current Assets $0
Long-term Assets $0
Total Assets $16,000
Total Requirements $25,604
Start-up Funding
Start-up Expenses to Fund $9,604
Start-up Assets to Fund $16,000
Total Funding Required $25,604
Non-cash Assets from Start-up $0
Cash Requirements from Start-up $16,000
Additional Cash Raised $0
Cash Balance on Starting Date $16,000
Total Assets $16,000
Liabilities and Capital
Current Borrowing $16,000
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $16,000
Planned Investment
Owners $9,604
Investor $0
Additional Investment Requirement $0
Total Planned Investment $9,604
Loss at Start-up (Start-up Expenses) ($9,604)
Total Capital $0
Total Capital and Liabilities $16,000
Total Funding $25,604

2.3 Company Locations and Facilities

John and Mary will be utilizing 518 sq. ft. (an extra large bedroom in the upstairs) of their home. John’s office area will be utilized for marketing and accounting operations. Mary’s office area will be utilized for data entry and clerical operations, etc.