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 baby boomer retirees, this market is large and set to grow even larger.
In this article, we will look at starting 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 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, profit 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 right 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 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 assess 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 all you can about them by reading their websites and calling their offices to ask questions. You can even spend some time following some of their vans to understand how they work and find out exactly who their customers are.
First steps: 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 businesses in this industry to be registered with local health authorities.
You may also need to go through other paperwork, such as registering your business name, obtaining a business license (possibly more if you serve multiple counties), and zoning considerations if you run a home-based business.
Vehicles and Equipment
It is common for medical transportation services to purchase regular vans, whether 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 doors and a raised roof. Access is usually from the side of the vehicle, but can also be from the rear.
Some operators still use hand lifts to help get wheelchair passengers on and off 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, wheelchairs can be attached to various restraints so they won’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 carry four wheelchair passengers at a time, as well as have extra seats available for caregivers. Depending on your clients, you may also need space in your van that will allow 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 loss while under your care. You’ll also need regular auto insurance to protect yourself 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 be required to bill medical institutions on a monthly basis 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 operating hours. The best ambulette services on the market generally offer service Monday through Friday from early morning to late night with decent hours on Saturdays as well. As a single operator, you will be limited in the hours you can hire. As you expand to a multi-controller operation, you will be able to offer more flexible scheduling to customers.
staff requirements
If you start driving all the time while running your business, you will burn out fast. In order 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 that allows them to carry passengers and may also be subject to certain local rules or requirements. No matter what, you need to make sure that your staff are trained on how to do the hands-on 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 have a pleasant conversation if the opportunity arises for them to help your brand earn a positive reputation.
Marketing
There are many different ways to market a non-emergency medical transportation business. For some ideas on markets you can target, read our article on Medical Transportation Business Opportunities.
Initially, you will 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 will find that eventually the 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 by doing a little advertising. A website that shows up in search results when people search for ambulance services in your area can really help. A small listing in the Yellow Pages will surely pay off as well. You can try just about any method that other local utility companies are using to promote themselves. Vehicle advertising is excellent for the exhibition and brochures, postcards or billboards can also work.