Understanding the Challenges of Growing Your Medical Billing Business
Why is it relatively easy for a medical billing company to compete against others in marketing and sales? There’s a widespread perception that marketing and growing your medical billing business is exceptionally difficult. But, in my experience, there’s a reason this perception persists. Recently, I spoke with several experienced RCM operators—people who founded, managed, and successfully sold their medical billing companies to larger entities. These individuals, now employed by those acquiring companies, provided some insight into this challenge.
Our conversation centered on marketing categories in the RCM industry—specifically, on defining and grouping types of marketing, such as advertising, trade shows, and digital strategies. For example, they proposed that advertising should encompass not only physical signs but also websites and social media. Similarly, they grouped email marketing and lead generation into a single category, arguing that both efforts served the same purpose. While some of this made sense, there were aspects I found overly simplified or even confusing.
Marketing Misconceptions in the Medical Billing Industry
We delved into a debate about how various digital marketing efforts contribute to lead generation. For instance, I suggested that email isn’t the only means of lead generation; instead, a range of channels—from social media to trade shows—play into generating leads. However, my colleagues seemed to think that email alone could stand for all lead generation activities, which could create misunderstandings in marketing attribution.
Similarly, I pointed out that a company website serves as more than just a digital billboard. Just like a sign on a building, a website isn’t what generates leads directly; it’s a landing point. The real marketing happens through channels that drive traffic to that site—whether it’s social media, PPC, or trade shows. The website is merely the conversion point, where potential clients submit forms or express interest. Yet, my colleagues were adamant that the website itself was the lead generator, even though, from an attribution perspective, it was just the platform where the lead converted.
The Importance of Accurate Attribution in Marketing
We circled back on this attribution issue several times. If a visitor arrives at the website due to a social media campaign or a retargeting email, the initial marketing channel deserves the credit for generating the lead. The website acts as the doorway, not the origin of interest. Retargeting can nurture potential clients, but the traffic source that initially brought them there is what deserves attribution.
After numerous rounds of this discussion, I reached an impasse. These industry veterans, while incredibly knowledgeable about medical billing and revenue cycle management, were less familiar with the nuances of marketing attribution, digital strategies, and technology—a common challenge for experts outside the marketing field.
Lessons for Medical Billing Companies Seeking Growth
Reflecting on this conversation, two key lessons emerged for medical billing companies striving to expand. First, it’s perfectly fine not to be a marketing expert. RCM professionals are deeply specialized in their field, and it’s unrealistic to expect expertise in every area, including sales and marketing. However, it’s beneficial to consult with or hire individuals who have expertise in these areas.
Second, this lack of marketing knowledge may explain why the industry finds it challenging to scale effectively and compete on a larger scale. If the entire RCM industry shares this hesitation to seek outside marketing expertise, it creates a situation where companies that do invest in marketing have a distinct competitive advantage. This might be one of the reasons why it’s often easier for companies with solid marketing strategies to capture market share from those that focus solely on their billing expertise.
