Rx for busy doctors: medical transcriptionists - Business Opportunities

Home Office Computing, May, 1992 by Jody Jordan

"I love what I do for a living," says Gerry Kelly, who runs All Type, a medical-transcription business, from her home in East Brunswick, New Jersey. Kelly is one of approximately 9,100 members of the American Association of Medical Transcription (AAMT), many of whom are home based. No matter what happesn to the health-care system, the field of medical transcription appears to be headed for strong growth in the 1990s.

At an AAMT conference last year, Robert Love, a Houston attorney specializing in the health-care industry, cited his projection that the industry will expand by 100 percent by the year 2000. In his opinion, barely one-third of the hospital market is being tapped. In addition, health-care facilities don't always have the space or the budget to keep all their transcription work on-site. The money you can earn as a medical transcriptionist, depending on the time you devote, your client base, and your location, ranges from $25,000 to $40,000 a year, according to most reports. Kelly herself made $43,000 last year.

Doctors dictate audiotapes describing patient care, operations, autopsies, and lab reports. Transcriptionists use a transcribing machine to listen to the tapes through headphones; they input the information to a computer. Doctors and hospitals need the records both to ensure consistent patient care and to protect themselves against malpractice suits. The transcribed documents become permanent records of patient care.

Typing skills are important for medical transcribing, but competence is not measured only in words per minute. "Medical transcription is a language specialty, not a keyboard specialty," says Pat Forbis, a certified medical transcriptionist and director of member services at AAMT. "Your speed and accuracy are determined by how well you know the language doctors use."

The main drawback to medical transcription is that it demands intense mental and physical concentration. Transcriptionists are hooked to headphones listening to doctors' hastily dictated notes for hours on end; when hospitals require quick turnaround, they may work well into the night. And after years of intensive typing, they run the risk of suffering a repetitive motion disorder.

LEARNING THE LINGO

How can you break into this specialized industry? Kelly, who has a bachelor's degree in biology and has worked as a pharmaceutical sales representative, attended night classes at a local technical institute for one semester, then got a job at a family-practice center. One month later the office manager agreed to give Kelly a set of keys so she could work flexible hours. (Since she had a two-year-old son at home, she preferred to work at night.) As she gained experience, Kelly researched computers and transcription equipment; she finally started her own business in December 1990. Now, she has contracts with two hospitals, works regularly for a third on a freelance basis, and has two subcontractors working for her.

There are various ways to learn medical transcription. There are two-year junior-college programs and two-semester courses at technical institutes, as well as on-the-job training. Kelly's knowledge of biochemistry enabled her to bypass the study of medical terminology and begin studying transcription immediately.

RUNNING THE BUSINESS

Once Kelly was confident of her technical skills, she called other transcriptions to determine pricing in her area. She now charges 15 cents a line; others charge by the typed page. Kelly bought a 286 computer with two floppy-disk drives, a laser printer, a modem, and a $650 transcriber unit. She uses WordPerfect software.

Kelly knows she needs an aggressive marketing approach. She keeps a prospect file and introduces herself by letter to individuals in charge of medical records, stating the benefits of using her services. She follows up by phone to ask about the prospects' current and future needs, and doesn't hesitate to ask about other departments that might be able to use her servides. "Even if they say they already have a complete staff of people on-site, I am quick to ask how they handle backlogs, overflow, vacations, and sick days." She tries to devote at least one morning a week to prospecting, including making sales calls.

Once you sell a client on using your services, you may wish to draw up a contract. Attorney Love says it's important to be as specific as you can. State what you will do; outline your work schedule and turnaround time; how the work will be delivered; and any on-site arrangements. You should also include your fees for services and your billing schedule.

Love says that anyone who has the technical expertise as well as the interpersonal skills to establish and maintain a working relationship can start a medical-transcription service today. "Medical transcription is a classic opportunity without walls," says Love.

Says Kelly: "Medical transcription is a challenging and rewarding career. Working from home has afforded me the luxuries of earning a decent income and being available to my son."