How to Start a Non-Emergency Medical Transportation Business

By now, you should be aware of the many compelling reasons why a non-emergency medical transportation business offers entrepreneurs such a great business model. With the growth of the health care industry and the explosion of retirees from the baby boomer generation, this market is large and set to grow even larger.

In this article, we will look at how to start a non-emergency medical transportation (NEMT) business. Learn about some of the steps that are involved and some of the aspects of this business that you will need to consider.

Franchise or Independent Operator?

There are now several players offering non-emergency medical transportation franchises. Entrepreneurs benefit from the franchise model as they can operate under an established brand name and get advice and training to start and run a business. However, with franchise fees that must be paid initially and on an ongoing basis, the earning potential is reduced. If you do your homework, you will find that this business is not that difficult and it is possible to start and prosper independently.

Choose the correct area

Give some thought to the demographics of the area where you are setting up your business. Look for statistics that show there are a good number of elderly, disabled, or Medicaid citizens living nearby. Compile a list of hospitals, dialysis centers, nursing homes, assisted living facilities, and other relevant operations. You might even be able to make initial contact with some of these organizations and learn about the transportation solutions they currently have.

Research the competition

Identify all the major competitors you will have in your area and evaluate them in terms of their strengths and weaknesses. You may decide to incorporate parts of your business model into your own business and reject other parts. Learn as much as you can about them by reading their websites and calling their offices with questions. You can even spend some time following some of their trucks to understand how they work and find out exactly who their customers are.

Getting started: licenses and permits

Regulations and requirements for medical transportation companies vary from state to state, so check locally to find out what your obligations are.

Since you are in the business of transporting paying customers from one place to another, you will need some type of permit, just like a taxi driver. Your application for this type of license will be handled by transportation authorities at the state or local level. Due to the nature of this work, some states will also require companies in this industry to be registered with local health authorities.

There may also be other paperwork that needs to be done, such as registering your business name, obtaining a business license (possibly more if you serve multiple counties), and zoning considerations if you are home-based.

Vehicles and Equipment

It is common for medical transportation services to purchase regular vans, either new or used, and then retrofit them to meet special customer needs. Business owners typically start with one vehicle and gradually add it to their fleet as their business grows.

The best vans for an ambulance have raised doors and roofs. Access is usually from the side of the vehicle, but can also be from the rear.

Some operators still use manual lifts to help them load and unload wheelchair passengers from their vans. However, you should be able to provide faster and more professional service if you have a modern hydraulic lift installed.

Once inside the van, the wheelchairs can be secured to various safety devices so they don’t move during transit. Vehicles also require custom seat belts for wheelchair passengers. You can also improve the quality of your service if you have some amenities such as TV and air conditioning.

A decent sized van that is properly equipped should be able to transport four wheelchair passengers at a time, as well as have extra seats available for caregivers. Depending on your clients, you may also need a space in your van that allows you to accommodate a passenger confined to a stretcher.

Insurance policies

To protect yourself from unforeseen events, you will need to purchase a variety of insurance policies. A general liability insurance policy will ensure that you are covered in situations where your clients are injured or suffer losses while in your care. You’ll also need regular auto insurance to protect you in cases where your vehicles are damaged, stolen, or involved in traffic accidents.

Payment options

Decide how you want to collect payment for your services. You may need to bill medical institutions monthly or process credit card payments for individual clients. If you serve large clients like Medicaid, then it can be as simple as getting a check in the mail each month. Talk to a few potential customers and see what their needs are. Find out what payment options your competitors offer.

hours of service

Give some thought to your hours of operation. The best ambulette services on the market generally offer weekday service from early morning to late night with decent hours on Saturday as well. As a sole operator, you will be limited in the hours you can contract. As you expand to a multi-controller operation, you will be able to offer more flexible scheduling to customers.

staffing requirements

If you start driving all the time while running your business, you will quickly burn out. To grow, you need to step back and hire some drivers so you can move into a purely management and marketing-oriented role.

Staff must have a driver’s license to allow them to carry passengers and may also be subject to certain regulations or requirements at the local level. No matter what, you need to make sure your staff is trained on how to do the practical side of the job. They need to know how to help passengers and their caregivers when they get in and out of vehicles. They should also be instructed to smile and engage in friendly conversation if the opportunity arises to help your brand gain a positive reputation.

Marketing

There are many different ways to market a non-emergency medical transportation business. To get some ideas about markets you can target, read our article on Medical Transportation Business Opportunities.

Initially, you’ll need to go out and meet potential clients and possibly even bid to try and win contracts. However, if your team is doing a good job, you’ll find that eventually business will come directly to you through word of mouth and referrals.

Of course, you can improve your chances of receiving calls from private paying clients if you do a little advertising. A website that shows up in search results when people search for ambulance services in your area can really help. A little listing in the Yellow Pages will surely pay off too. You can try just about any method that other local service businesses are using to promote themselves. Vehicle advertising is great for display and flyers, postcards or billboards can also work.

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