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 boomers, this market is large and set to grow even larger.
In this article, we will see how to start a Non-Emergency Medical Transportation (NEMT) business. Learn about some of the steps involved and some of the aspects of this business that you will have 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 receive advice and training to start and run a business. However, with franchise fees that have to be paid initially and on an ongoing basis, the potential for profit 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 that 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 could even make initial contact with some of these organizations and learn about the transportation solutions they currently have in place.
Research the competition
Identify all the main 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 all you can about them by reading their websites and calling their offices with 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.
Introduction: licenses and permits
Regulations and requirements for medical transportation companies vary from state to state, so you should inquire 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 kind 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 register with local health authorities.
There may also be other formalities that need 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 running a home business.
Vehicles and equipment
It is common for medical transportation services to purchase regular, new, or used vans, and then retrofit them to meet the needs of customers with special needs. Business owners generally start with a vehicle and gradually add to their fleet as their business grows.
The best vans for an ambulette have a raised roof and doors. Access is usually from the side of the vehicle, but it 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, wheelchairs can be attached to various safety devices so that they do not move during traffic. 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 seating available for caregivers. Depending on your customers, you may also need a space in your van that allows you to fit a passenger who is 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 will 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 you may need to process credit card payments for individual customers. If you serve large clients like Medicaid, then it can be as simple as getting a check in the mail every 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 service Monday through Friday from early morning to late evening, with decent hours on Saturdays as well. As a sole operator, you will be limited in the hours that you can assume. As you expand into a multi-conductor operation, you will be able to offer more flexible scheduling to customers.
Personnel requirements
If you start driving all the time while managing your business at the same time, you will quickly burn out. To grow, you need to step back and hire a few drivers so that 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 standards or requirements. No matter what, you need to make sure your staff are trained on how to do the practical side of the job. They need to know how to help passengers and their carers 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 gain a positive reputation.
Marketing
There are many different ways to market a non-emergency medical transportation business. For some ideas on the markets you can target, read our article on Medical Transportation Business Opportunities.
Initially, you will have 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 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 customers by doing a little advertising. A website that appears in search results when people search for ambulette services in their area can really help. A small list of yellow pages will almost certainly be worth the cost. You can try just about any method other local service companies are using to promote themselves. Vehicle advertising is great for display, and brochures, postcards, or door hangers can work as well.