WHAT THEY SAY
This section gives you an overview of the business or service. I try to highlight the major selling points. The information in this section comes directly from the company profiled. I am not affiliated with the company and receive no financial benefit if you choose to do business with the companyThe Pitch American Billing Systems(ABS) offers a comprehensive business system to anyone that wishes operate their own independent business. This business offers professional billing and automated cash flow management services to medical providers and general business owners. According to the company, prior medical billing experience or certification is not required to operate this business.
What do they offer
Real-Time Electronic Claims Filing.
The ABS package includes custom software that allows you to process medical claims online, over the Internet, from any computer, anytime 24/7, in real-time.
Multiple Streams of Income.
ABS offers the opportunity to build up to 10 streams income by providing cash flow management services to doctors and general small business owners.
Turnkey Marketing System.
ABS has a marketing system designed for people with little or no marketing experience. Their staff teaches people how to build their businesses using technology, networking and word-of-mouth referrals. This is done through the use of full-color glossy tri-fold brochures, audio CDs, professionally designed postcards, PowerPoint slide shows, flip-charts, flyers, faxes, letters, and more.
Training and Support.
ABS offers a variety of training options including, a 4 day training seminar in at corporate headquarters in Dallas, a DVD home training, online training including a weekly webinar, and ongoing coaching with their Success Team. In terms of support, they offer 2 years of unlimited support via phone, fax, email, and access to a private website setup for technical support.
How Does it work?
This video offers an overview of how the business works and what you can do with your business.
Is Franchise or an Business Opportunity?
ABS is a national licensing company that sells a business system to entrepreneurs. As a Licensee of American Business Systems, LLC you will open and operate your own independent business. Since this a licensing opportunity and not a franchise there are no ongoing franchising fees.
How much does it cost?
You will need a substantial amount of money to purchase this system. The cost is $19,990 (UPDATE: Based on comments left by readers, the cost for an ABS license is now $25,000) . The site does state that they can help to arrange financing for up to half of the total investment. No details on what kind terms are offered.
WHAT ARE OTHERS SAYING ABOUT….AMERICAN BUSINESS SYSTEMS
Now on to the more interesting part of the review. This section is where I pull together a sample of opinions from people that have posted their experience and knowledge of the company. I try to be fair and balanced, but I give you what I find.From Ripoff Report.com I found 1 report on this site regarding ABS. Below is a part of the report.
They have Old technology with ZERO INTEGRATED SERVICES. Your competition will have a field day and eat you up alive with this garbage.
MARKETING MATERIALABS WILL GIVE YOU MARKETING MATERIAL THAT WAS PRINTED OVER FIVE YEARS AGO AND SOME OLDER THAN THAT. Its useless!!! You will find that most of the material is not even worth using as you will have to alter the fraudulent language that is unethical and shouldn’t be used as FACT, i.e. paid in 7 to 21 days. REAL-TIME technology etc. SUPPORT; Be prepared to be given the run around. Support is limited and frustrating with ABS. They say they will support and help you in every way. I have heard that they will tell you to READ THE HELP FILES. And go get a course on coding. some get more but in the END YOU ARE PAYING THROUGH THE NOSE!!!
From Medicalbillingscamwatch.com
Don’t spend 20K for this product. This company does not own anything. They dont have any system. Even after you pay 20K, you will need to pay extra for any product which they says they have. For example if you want medical billing, you will need to pay again. All they use is medrium system. You can go to medrium.com and get it VERY cheap.
From AB Systems.com
ABS offers a 23 page pdf file with testimonials from licensees. As you might expect since it’s available on its site these testimonials are glowing in praise for ABS. I did check a handful of the business names and the companies seems to be real, legit, and still doing business. You can download the enitre pdf file here.
I was unable to find any other (independent) sources for testimonials, but the search still goes on.
Better Business Bureau
ABS has an ‘F’ rating with the BBB, which is the lowest possible rating available. According to their report in the last 36 months the BBB has received 3 complaints against ABS. 2 complaints were for ’selling practices’ and 1 for ’service issues’. All 3 have been ‘resolved’. You can read the full report here (read my note regarding this under ’My observations’ for more on this).
RANDOM OBSERVSATIONS
Up to this point I have kept my personal opinions and observations to myself. This section is where I give you some of my thoughts. They are random and might not be relevant to you, but they just might make you stop and go, Hmm?- I like the website. I think it gives a lot information and answers many questions in an easy to understand fashion.
- I like the fact that they don’t hide how much it’s going to cost you to purchase the system. However I do thing it’s a lot of money and you probably could find a cheaper way to get into this business.
- I think that not having any experience in this field will put you at a competitive disadvantage. I know someone that works in the medical billing industry for a hospital and according to her many doctors like to handle billing in-house because it’s so important. Given the competition in the industry, I imagine that you would have to bring something to the table other than nice marketing brochures to get their business.
- The BBB report had me scratching my head a little. An F rating, but only 3 complaints in the last 3 years doesn’t make sense to me. I’ve seen businesses with 3 times that number of complaints with the same rating.
- You can schedule a visit to headquarters in Texas, if they were a "scammy" type of company would they do that? I’m not sure, just wondering
- I have worked with companies in the past that offer coaching services and they were an additional cost, expensive, and overrated.
- I was surprised by how few independent reviews of ABS are out there. Not sure if that’s a good thing or not.
- The Ripoff report on ABS has some solid points, but I got the sense that the poster had something personal against ABS. Just my feeling.
- Overall, my Scam-dar wasn’t flashing on this one.
ADDITIONAL RESOURCES
Be sure to check my follow up post which contains useful information on starting a home based medical billing business. The post goes live on 5/26/09
My name is Dakim, I am the creator of the Home Business Private-Eye.com. I want to help you discover your true passion and then, help you to turn that passion into profit! 
[...] post is a follow up to my review of AB Systems LLC, a medical billing licensing company. As I was researching that company I came across several [...]
The reason that ABS has a “F” rating is because they are a home based business. Starting Jan 2009 all home based businesses are rated “F” by BBB. If you read the BBB report for ABS you will see that it says “BBB concerns with the industry in which this business operates”. They are concerned with the industry ( home based businesses) not the individual business itself.
http://www.fortworth.bbb.org/commonreport.html?compid=A3110805#Ratings
Additionally, BBB has stopped accrediting any home-based businesses which is kind of unfair as everyone is getting punished because of some wrong-doers.
Thanks for the insight. I agree that it is unfair to lump possible legit home based businesses in with scammers.
I have made several complaints about American Business Systems to the company and to the BBB and that was over a year ago and still my complaint has not been resolved. My main complaint is the 2 year support that they did not provide me.
D-
Would you care to elaborate? You have an open forum here and I sure you experience will help other readers make up their mind about America Business Systems.
Thanks for comment
I would have never paid 15k to ABS if I new I would not get the support they promise, I went with them because I have no medical billing experience. ABS says get the client and they will help you, when I finally did get my first appointment, I emailed support for help, I emailed again the next day and when they responded back they said it could take 24- 48 hours for someone to get back to me. I was not the only licensee that had problems with support, she did get her money back. I did complain to ABS and to BBB and nothing ever was resolved. ABS has never made an attempt to contact me and correct the mistake they made with me.
Beware of ABS. They make it seem very simple and easy to get a business running but it’s not. I have to also agree that their support stinks. I worked my butt off for 60 days and was making little progress. When I asked for additional help with my elevator pitch or ideas for a newsletter I got no help at all. They’ll give you advise when you meet with a potential client or instruct you on entering claims, but that’s about the extent of their support.
The marketing material is also old. It was written up when paper claims processing was still widespread. That’s not the case anymore. Most places have electronic billing today.
Finally, everyone is at a disadvantage because a lot of home based medical billing businesses have burned doctors in the past. Most doctors don’t want to trust their billing to outside people, especially those with no history in the industry. You’ll have to work long and hard to make a name for yourself in the business so if you decide to go this route be ready to put a lot of time into it.
Thanks Joe for your input. Your first hand experience echos what I’ve been told about the medical billing industry. It is difficult to get doctors to sign on with someone outside of their office.
I have been considering a home based medical billing opportunity and this information has been very helpful. ABS was high on my list and also a company called Claim Tek. I have similar concerns as those posted. Does anyone have additional information on the other services offered through ABS, i.e. patient payment plan, patient well care program, checks by phone, billing and invoices for general business services, etc…? Are these legitimate services that can actually make money or just throw-ins?
Glad the information I posted was helpful. I don’t have specific knowledge about the services that you mention here so I can’t answer. But I did reach out to the people who have commented on this post with the hopes that one of them will have the answers you seek. Please keep us posted on your decision.
Thanks for the comment.
Hi All – Dakim asked me to respond and help provide additional info regarding some of the comments on this board. Dakim, I responded to your email, but it bounced back to me.
First, the post from “NJ”: The BBB is currently re-evaluating the rating given to ABS and they have been very thorough in researching us and our business practices. They have requested current licensees, sales scripts, attended webinars, and more. They are close to a decision and we feel confident that they will find a sound business in ABS.
Next, the posts from Ms. Collis and “F”: ABS would love to please 100% of our licensees 100% of the time, but unfortunately we cannot. Painful as it may be, these posts help us improve. We have increased support efforts, we have a live answer 800#, a 24/7 private Licensee Intranet, email response within 24 hrs (usually much less), and a new support ticket system coming in a few weeks. We are updating our marketing materials as well.
To “WLA”: Of the services you mention, the Patient Payment Plan is definitely the easiest to sell, and the most profitable for you. The best way to learn more would be to talk with some licensees who have PPP accounts, and ask them about it. I can let you talk with a licensee who has 25 PPP accounts, and is making a very nice living.
ABS is a family owned business and when my father (the Founder) retires, I will be taking over, so I take posts like this very seriously. We have licensees doing very well who have zero medical background so I know that our system works for those willing to work at it. It’s certainly not easy to get a client, you do have to put some legwork in.
I would be more than happy to speak with anyone who wants to know more. Just give me a call at 866-565-8413 x 103
Thanks,
Adam Phillips
P.S. – For the most up to date testimonials and success stories, visit our blog: http://www.absystemsblog.com
Thanks Adam for the informative and timely response. Sorry about the bounce back, I”ll look into it.
ABS and Adam Phillips should try to correct the mistakes they have made in the past with their existing licensees instead of ignoring the problems, I gave them the opportunity and they have never returned my call.
I have had better luck with buying my own billing software and using a clearinghouse that I have found on the internet and I think you can use the same clearinghouse as ABS uses if you like them, and I did this for under $1,000.
After reading this go to
http://dihasstories.wordpress.com/2007/11/16/american-billing-systems/
It seems that this has been done before according to Ken.
Although I have not purchased a license from ABS direcltly I am working as a salesperson for one of their licensees. I took the position hoping to one day to purchase a license and run my own business in the near future. I liked what I saw on the website and it looks like they have been in business since 1994 with 1500 licensees. I guess they have only sold one hundred a year since their inception.
I have reviewed the Training Material that was provided to the licensee and watched the DVDs of the training as well. I have attended the ongoing webinars as well. I am not sure, but it seems like its alway the same individuals who are doing these webinars. I would expect with 1500 licensees the success stories would come from more than 12 individuals.
I marketed the various services to Physicians and General Businesses. I thought Medical would be a better fit as I have had 10 years of experience in this field.
It looks like this is not really a business opportunity but a bundle of vendors being sold as a business opportunity, with some templates and spreadsheets that have been created to assist the licensee.
The Patient Payment Plan revolves around a Client Server Software Program that isn’t all that intuitive to use. There are many other companies offering the same solutions via the Internet. The same functionality can be found in the Intuit Quick Books application as well.
The billing system they provide is hosted by http://www.medrium.com. It is a watered down version of the software that Medrium uses for their clients. You can view their software here.
http://www.medrium.com/downloads/Medrium_Sales_Aide.pdf
Also this vendor does billing for practices so they are in direct competition with the licensees. Why would a provider incur your overhead when it appears you can go directly with the vendor?
The patient Well-Care utilizes Send Out Cards. You can purchase their package for 400.00. If you attend any Chamber of Commerce meeting you will probaly run into 4 or 5 vendors who offer that service to businesses as well.
The Profit Recovery Services is handled by a vendor called Money Quest.
They do seem to be offering new services to the licensees. I applauded that I would have something else to offer physicians as well. I showed the RAC Audit to a Hospital Administrator friend of mine and while watching the presentation said she knew the person who provides the service and works for a competing firm. I did further research.
The person who is promoting these products works or is profiled at another company which looks to me like a competitor. She uses the same photo from http://www.ats.com > Corporate Overview>Management Team as she does in the Amercan Business Systems webinars. I do not see where iTotalSolutions or ABS has any vendor relationship with this company (www.ats.com)
Look the premise is good. Retiring Baby Boomers yada yada yada. The reality is that most organizations have in place a system purchased from the larger vendors and are not looking to outsource to some home based billing organization. Just go to some of the venues like BNI, MGMA and Chamber meetings these people are everywhere and have the same story of inability of obtaining clients.
My recommendation is to go out and figure out how to start a business, find your own vendors it will cost substantially less than the 20,000 that was spent by this licensee.
Thanks Peter for the in depth analysis. This is exactly what my readers need to help them make a decision about ABS.
Peter, Thank you for all of your information about this company, I hope more people will find this helpful.
Dakim:
I came across your site I think you need to do more research on the company. I came across this before I decided to purchase a license it seems that this person has scammed numerous individuals prior to getting into medical billing.
http://www.ripoffreport.com/work-at-home-business/american-business-sy/american-business-systems-llc-7eacc.htm
I noticed there has not been any response from the founders son on the issues that keep appearing on this site and others.
Question to Dee:
You said: “I have had better luck with buying my own billing software and using a clearinghouse that I have found on the internet and I think you can use the same clearinghouse as ABS uses if you like them, and I did this for under $1,000.”
Dee, could you tell us which billing software and clearinghouse you are using?
And is your client a doctor’s office that you are using that for?
Thanks.
In reply to JK. I read his rip off report link with an open mind up to the point that he stated the bankruptcy filings. Bankruptcy happens. Especially in this economy. Heck, Donald Trump has filed a couple times himself! Sorry but I must dismiss your post as I feel that report was filed by someone with an ax to grind.
Save your money and go to medical billing school! ABS only teaches you how to market your medical billing business. If you do not take the time to learn about coding it is very difficult to sell to a practice no matter how good the marketing material is. I invested in ABS and I am very frustrated .
I wish all of these comments were posted prior to my investment. Take this information to the bank with your $20k.
Dee, Peter, and Lisa -
You are right. We have not listened carefully enough to our licensees concerns in the past and that has changed. All I can ask is that you let us help you build your business using the improvements that we have made in the areas that you mention. We now have Lifetime support, Live answer 800#, email response is less than 4 hours in most cases, added more support staff, lowered the system fees, and more.
Yes, anyone can purchase billing software and take some coding courses. But again, if you don’t know how to effectively market to doctors, the best software and coding skills are not going to do much good. Our Coding service (which may be new to some of you) utilizes coders who are already trained and certified so YOU can start making money much more quickly than if you were to go to school to learn coding.
Not every licensee is going to succeed in this business. That is a fact. But we are working hard to provide access to the best tools and training available to give everyone the opportunity to succeed.
Please call me at 866-565-8413 x 103 anytime.
Adam Phillips
I bought a licenses in May of 2009 when I lost my job. I paid 19,900.00. Went to the training which was OK. Came home ready to go to work. Sent out about 300 letters with no reply. ABS promised 5 appointments. They got me 5 “leave me some information” which I did with no reply. I joined groups to promote my business. I made cold calls and nothing. I have since gotten another job and decided to sell my license only to be told so far that I can sell it but who ever buyes it will still have to pay the current license fees of 24,900.00. Now who would be stupid enough to do that. So I guess the moral is that the license is worthless.
Thanks for sharing your experiences Chuck. It definitely adds to the discussion.
I would not have thought I would ever be someone to add comments to something like this. However because of my own experience and similar experiences with a friend who attended training recently I am compelled to write something. I couldnt sleep at night if at least I didnt share my own experiences for whatever it may be worth.
I bought a license mid 2009 but could not attend training until the winter of 2009. I thought I had done all the due diligence that was offered by the sales team at ABS. I paid $19k, by the way my friend has paid almost $25k or will by the time the full amount is paid. I dont think she got much more than what i did 2 months previously.
I have to say that the hotel that training is held is wonderful, very polished and impressive. ABS does a good job of making us feel like a million bucks. The instructors were wonderful. My instructor was a very experienced lady who had vast experience in medical billing and was very informative. I do not believe she was a licensee but she shared that she had no experience in the field and wished that she had an ABS to go to with her company (I felt so much better after hearing this). Mr Phillips was in training a short time. He is very interesting and offered the class some great insight into business (although I am not sure I agree with his ideas on not paying taxes.It was actually my first “oh gosh” what did I get into moment). The other instructor talked about the process to market our services to doctors. I was mildly concerned that she was an ABS licensee but only had 4 clients (she was soon quitting her real job to do this full time). Both the instructors worked well together and offered what appeared to be a wealth of information. that was the extent of support we have received.
The ABS licensee/instructor painted a nice picture of how easy it was for her to get her first client but then told us that she was not doing the billing. My friend and I have since learned that there is virtually NO medical billing instructions given by ABS. It really is an on-the-job training experience. They sent both of us a box of material that included about 25 brochures (you have to pay for more), a few CD’s that you give physicians, and other brochures about payment plans for patient balances.
I have called support approximately 3 times in February, 3 times in March and twice in April. I am unable to get to the initial instructor who gave us the majority of the training we needed. My friend tells me that she was not at training, only the licensee from Colorado who does not even do her own billing.
We both are wondering exactly what we paid for. was the training worth the $19k I paid for one week…hardly NOT and my friend was even more disappointed. They have since added a marketing mentoring program that is just an extension of the week’s training we already got. Perhaps folks need that. I’ve talked to everyone in my training class and we are all very disappointed at what ABS really is. I have one client, that I got not using any of the material that ABS provided. I got NO help in setting up my client and no billing guidance.
The billing system is out of Georgia and they were wonderful. The name of the company that ABS uses is Practice Admin. ABS does not own the company and appears to just rename the Practice Admin system. They apologized that they were not in a position, nor had a contract to provide billing training for ABS. ABS has been totally worthless in helping with supporting me when I got my first client. I have asked for access to my instructor and have yet to receive an answer. Perhaps she is no longer with ABS. But they just need to tell me. I am the only one in my class to have a client.
Just be careful. If you dont have the money to throw away on a one week training class in Dallas do your own research. I have since found other options to getting support to growing my company and training me in billing….$19,000 down the drain.
We would all ask for our money back if we could. BTW a friend of ours is an attorney and he tells us that the companies who have negative reports on RipOff.com can pay the owner of Rip Off.com to reverse or “clean up” the reputation of a company. Is there no one we can trust?
Just be very careful unless you can afford to give someone $25,000.00
Thanks for comments KMartin!
I’m glad you decided to add to the discussion by sharing your experiences and insights with ABS. This is exactly what I had in mind when I creating this blog. I’m also thrilled to see that despite your difficulties with ABS, you are continuing to build your business. Good for you.