Healthcare Business Services Group, Inc. (OTCBB: HBSV)

Dear Reader,

What’s better than a stock in a growth industry?  How ‘bout a stock that has a growth business within a growth industry?

Perhaps that’s too trite a description of today’s subject company, which has a footprint in the medical billing space - an arena bustling with activity due largely to the growing numbers of aging baby boomers seeking medical care.  But today's featured company, Healthcare Business Services Group, Inc. (OTCBB: HBSV), is also endeavoring to build a new revenue stream in outpatient surgical center operations.

It’s clear that health insurers are striving to get their claimants in and out of the hospital as fast as possible… and to prevent them from ever going if they can.  It’s no stretch to suggest that what appears to be a rise in outpatient surgical centers must be fueled by the HMO’s fiscal desires to cut costs.

So, take a brief moment to review today’s profile and consider the company through the looking glass of your own lives.  Sure, medical billing is something we all encounter passively on our trips to the doctor, but have you also noticed that many procedures are being completed in specialized surgical centers rather than through lengthy stays in hospitals?

Perhaps you have, and today’s profile will show you one company’s best efforts to capitalize on this burgeoning market.
 

About Healthcare Business Services Group

• Medical Billing Services to healthcare providers in the United States
• Medical Billing Software
• Surgical Center Operations

This proven and stable base of operations has laid the foundation for HBSG to enter the software technology segment of the medical billing business with its AutoMed medical billing software, which streamlines and automates the electronic medical billing services.  The company believes that it is the "first in its class" and the only automated, full-service product on the market.  HSBG is in the late stages of planning and developing a surgical center in Southern California as an asset-based revenue stream.  HBSG also has operations in Rhode Island and Texas. 

The market in which HBSG operates commands healthy trading multiples by Wall Street as exemplified by Per-Se Technologies Inc. (NasdaqNM: PSTI), a major competitor in the physician services and business outsourcing segment.  PSTI, with a market cap of $591 million and a recent share price just below $20 per share, trades at a forward price/earnings multiple of 15.23 times this year's projected earnings (yahoo/finance).
 

HBSG Marketing

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HBSG continues to increase its relationships with physicians and medical specialty practices around the country. With a historical track record of revenues and earnings, HBSG has earned a credible reputation among its past and current clients.  The 'Good Will' of HBSG's business integrity gives the Company a unique and durable position in the medical billing market.

These strategic components will allow HBSG to smoothly transition into the markets of medical software and brick & mortar surgical center operation with easier entry points and a willingness of supporting vendors, suppliers, and designers to provide HBSG with the best possible products and services.
 

HBSG  AutoMed Products and Surgical Center Services

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AutoMed Software ("AutoMed") is a newly developed, thoroughly tested, and ready-for-implementation medical service software that streamlines and automates electronic medical billing services, which could eliminate billing and coding personnel.  HBSG believes that AutoMed is the first in its class and the only full-service product on the market.

HBSG is poised to launch this proprietary software system, based on HBSG's proven billing model.  Clients can more cost-effectively use the HBSG method to drastically improve their cash flow.  AutoMed software offers automated billing in the area of insurance claims processing, patient billing, automated follow up and electronic claims submission, providing true one-stop shopping.  HBSG estimates that by using AutoMed, a medical practice will save up to 75% of its billing and collection cost while adding significant revenue.

HBSG is also in the process of planning and developing its first Surgical Center.   A single surgery center could bring in net revenue of $5 million per year.  Once established, HBSG intends to follow its business model of steady growth and add high-quality surgery centers in multiple geographic locations.   This will provide a new revenue stream that should be enhanced with each new center opened. 

Through the acquisition and merger process HBSG underwent in May of 2004, the Company acquired real estate in Upland, California and is currently renovating an existing building and in the process of constructing a new structure for its surgery center.  The planned surgery center will be able to offer the same services as an out-patient hospital, but at decreased costs and greater convenience.  HBSG has received approval from the Upland City Council to complete the center. 

The US health care services market, the world's largest, is worth about $1.7 trillion.  The surgical care industry in the United States includes about 1,500 companies that operate 3,500 freestanding outpatient surgical centers, with combined annual revenues close to $6 Billion. The National Center for Health Services has reported that 42.5 million surgical procedures were performed in 2002.  It was also reported by the Congressional Budget Office that in 2002, approximately 40 million people were living without health insurance.  This points to the demand in the market for affordable surgeries that don't require hospital stays.
 

The HBSG Medical Billing Service

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HBSG has provided its successful model of medical billing to literally hundreds of practices and companies. The system is based on the following: Doctors receive prepaid envelopes in which they send the patient's face sheet, insurance information and documentation, and any other dictation, notes, or other documents pertinent to each case The HBSG biller assigned to the doctor follows instructions on how each case should be billed HBSG billers work directly with the hospital medical records department and the operating room to confirm the list of patients serviced by the physician.  This patient tracking system maximizes revenue by assuring that all billing is completed for all patient services All bills are immediately custom-coded by using all reports and the bills are sent out If there is a secondary insurance, the above procedure is repeated to ensure maximum compensation Billing Uninsured and Cash-Only Patients Statements are generated for all patients,  under the doctor's permission, to all uninsured, cash only,  and deductible/co-pay due patients Collections Procedure (by doctor's direction only)  All collections and legal actions, where necessary,  has to be approved by the physician

"I am an anesthesiologist and pain management specialist and have been with Healthcare Business Services for the past eight years, after nearly being forced into receivership by my old billing service. During this period of time, I have found HBSG to be reliable and responsive to the needs of their clients." J. Mase, MD, Anesthesiologist/Pain Specialist

"I regard [HBSG] to be the best of the best in the billing field.  Pain Management billing requires a specialized expertise and HBSG has it in spades." Dr. Bishop, Pain Management - Medical Director and HBSGI client since 1999

"To say in one word, the ‘BEST’ billing service. N. Grewal, MD, Pain Specialist, CA - HBSGI client since 1996
 

HBSG LEADERSHIP

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Ms. Basu has over 15 years of experience  in medical billing and is  a recognized pioneer in healthcare

Why is HBSGI more successful than other billing agencies?

    * Our staff is highly trained in the insurance industry for various states across the country.
    * We utilize a unique approach to medical coding, billing, and practice management.
    * We do not believe that relying exclusively on electronic billing guarantees maximum reimbursement.
    * Most of our claims are mailed with a copy of all documentation of all procedures.
    * This process eliminates the risk of an audit 

 
Healthcare Business Services Groups, Inc., (HBSGI) is the fastest growing full-service medical billing agency in the country. What makes HBSGI stand out from thousands of other billing agencies in the industry?

First, HBSGI is a customized billing agency. The biller assigned to each client's account studies and specializes in their client's specific cases and will collect top dollar for their expertise.

Second, HBSGI is successful in medical billing for states other than California.  In fact, HBSGI currently operates locations in Providence, RI, and Lorado, TX, in addition to its Headquarters in Upland, CA. It does this to better serve the specific needs of its clients.

Third, HBSG's CEO, Chandana Basu, is a pioneer in collecting from insurance companies, especially those that often refuse to pay.  As the medical industry continues to change, HBSG's clients continue to rely on Chandana's extensive experience to take them to the "greener grass". 

TO CONTACT HBSG

Healthcare Business Services Groups, Incorporated
Healthcare Business Services Groups, Inc.
1126 W. Foothill Blvd., Suite 105, Upland, CA 91786

Phone: 909.608.0540 or 909.821.1419 - Fax: 909.373.1601
e-mail: General Information: colorred01@aol.com or info@hbsgi.com 
 
 

HBSG Corporate Web sites: www.hbsgi.com and www.thenewhbsgi.com

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