The country is in desperate need of non-emergency medication transportation businesses. Although they aren’t pulling people out of burning buildings or performing PCR on a lost soul, they are still a central part of our medical service.
Without NEMT, organs cannot arrive in time to save someone after a crash, and disabled people often become locked in their homes unable to explore the world around them.
This means starting a NEMT business is extremely lucrative. If you’re thinking about it, here are 5 essential things you need to know.
How Much Money Do NEMT Providers Earn?
Using information from Profitable Venture, we know that non-emergency medical transportation business providers can earn anywhere between $40,000 and $60,000 a year.
These earnings come from the state’s Medicaid service, which means each state will have a different average to contend with. However, as a country, the average is still very high, even for new businesses in this sector.
As with any new business, generating profits often takes a couple of years of hard grafting first. The same goes for NEMT businesses, especially as much of the equipment you’ll need for the job will be expensive.
Knowing the average coming your way, plan your loans ahead of time using the estimated growth of your business.
Costs Of Starting A NEMT Business
Speaking of costs, you can expect a non-emergency medical transport business to have starting costs of around $350,000.
This estimate is based on the vehicles you will need, the office space you will need, the equipment, and the training.
If you are creating a taxi service that helps disabled people visit their friends or go to the hospital, you will need to adapt your car or van to include medical lifts, handlebars, noise-canceling walls, and more. The transformation will cost thousands, and that’s just one vehicle.
There will also be insurance fees, registration fees, and qualification fees to get you and your staff up to regulation standards.
Talking to other similar businesses can help you estimate how much your new starter will cost.
Understanding The Industry
The best way to understand what you need to know, how much everything will cost, and how much competition you have, is by talking to the businesses in your desired sector.
Once you start this conversation you will know the legal forms you’ll need to abide by, the qualifications you’ll need to abstain, and the difficulties you can expect to face.
Noting down the specifics of the business sector can help you create a checklist of jobs you need to complete. You may need to hire legal advice during the set-up stage and rehire the company every couple of years to ensure you are staying within the sector regulations.
Being aware of industry standards such as these, can ensure you are financially prepared for your business.
Sticking To A Niche
It can be easy to dream big and try to create a business that can do it all. But in reality, the best companies in the NEMT business see a hole in the market and fill it. Finding a niche and sticking to it will allow you to dominate the market that few even realize exists.
For example, using statistics from Profitable Venture, we know that 3.6 million Americans admit to missing their medical appointments due to a lack of transportation.
Knowing that this massive issue for millions of Americans needs fixing, you can create a taxi service aimed at those with disabilities who need transport. Perhaps, there are no buses in rural areas, so your taxi service can bridge the transportation gap. Or maybe customers need a wheelchair lift in a vehicle and none are available in their area.
Using your industry knowledge, and the gaps in the market, you can cater your business to fit these needs.
Using Your Competitors To Your Advantage
Even niche businesses will have competitors. When you start your business you need to know who these companies are and what makes them good.
Knowing what customers and clients like your competitors can help you create the same positive feedback. For example, they might like the smoothness of the company’s app, perhaps the scheduling system is superior, or maybe the customer service is enough to gain top-tier respect.
Summary
Knowing these essentials can help you decide if you want to create a business in the non-emergency medical transportation business. If the answer is yes, you now know where to start, what to keep an eye out for, and how to use your competitors to your advantage.
