How to Start a Medical Transportation Business NEMT Opportunities

Author Steve Sutherland Copyright !"

Legal Notice/Disclaimer/Disclosure
Copyright 2012 Steve Sutherland. All Rights reserved No part of this publication may be sold copied reproduced stored in a retrieval system or transmitted in any form or by any means including electronic mechanical photocopying recording scanning or other!ise !ithout prior !ritten permission from the author. All trademar"s mentioned in this report are the property of their respective o!ners. #he information contained in this guide represents the opinions of the author. #he author has made all reasonable efforts to ensure that the information is correct and up to date. $o!ever it cannot be guaranteed that this is the case and !e ma"e no representations or !arranties !ith respect to the completeness or accuracy of the follo!ing information. %y reading this guide users ac"no!ledge that they cannot hold the author or publisher liable for any losses suffered as a conse&uence of their actions. #his information is intended for educational purposes only and should be used at your o!n ris".

1) Introduction Read This First

'elcome( )y name is Steve Sutherland. * did some research into the non+emergency medical transportation business last year. * still haven,t opened a business in the N-)# industry as * ended up going into other areas of business. $o!ever * still thin" that medical transportation represents an e.cellent opportunity and * may get in at some point in the near future. 'hile * !as researching this business * too" a lot of notes and chatted !ith a fe! business o!ners. #he follo!ing guide contains the information that * uncovered. Some of the content in this guide is fairly generic business advice and other parts contain information that is specific to the non+emergency medical transportation business. *f you are loo"ing for more information chec" out www.MedicalTransportation i!.com "this site has some a!esome information that is &uite different from !hat you !ill read belo!/. *t can be hard to find good &uality information on ho! to get started as business o!ners in this industry are usually fairly secretive. %usiness o!ners !ill never let on ho! good they have it or share information as they fear that ne!comers !ill steal ideas from them. *f you have a desire to start an N-)# business then * strongly encourage you to pursue your dream. Read on and find out ho! you can 0oin this elite group of entrepreneurs !ho have achieved the lifestyles and incomes of their dreams by helping people in need to get around on a daily basis. All the %est Steve Sutherland

#hat is the N$MT usiness %&out'

'hen people thin" about business opportunities they usually thin" of something that everyone else is doing or something !ith limited mar"et potential. 'ith non+ emergency medical transportation you have an opportunity that is still relatively une.ploited as !ell as a huge mar"et !ith enormous potential for further gro!th. 'ith the gro!th in the health care industry driven mainly by aging baby boomers medical transportation is the ideal ,recession proof, business model right no! and in the coming decades. A non+emergency medical transportation 1N-)#/ business sometimes "no!n as an ambulette service is not to be confused !ith a regular ,211, style ambulance service. #he non+emergency sector of the business involves the transportation of the elderly and disabled in non+emergency situations. #ypical trips !ill include runs bet!een residences hospitals medical centers and other destinations that !ill depend on your clients needs and lifestyles. As such drivers don,t re&uire any medical training.

Reasons to (tart a Non)$mergenc* Medical Transportation +ompan*

*f you are loo"ing around at business opportunities then you !ill have discovered that your options are almost endless !hen it comes to industries and business models. $o!ever not every opportunity is e&ual. Some are laden !ith advantages and offer good future potential !hile others are overly competitive or are in industries that are on the decline. As you continue to do your research !e are sure that you !ill find that non+emergency medical transportation 1N-)#/ or ambulette service is one of the 0uicier apples on the tree. 'e,ve put together a list of reasons !hy !e thin" that a medical transportation company could be your best bet for a business opportunity !ith solid potential right no! and !ell into the future.

%n %ging ,opulation #here is a booming mar"et for medical transportation right no!. *n recent years members of the huge post+!ar baby boomer generation have started to retire. As people is this age group enter their si.ties seventies and beyond many of them !ill re&uire assisted transportation. According to government data the percentage of the population !ho are over 34 is set to rise from 12.25 in 2002 to 125 by 2060. 7nli"e generations before them the baby boomers are used to a high standard of living and medical care. So not only is the mar"et gro!ing in terms of si8e but the average number of 0ourneys per head should also slo!ly increase as !ell. The -rowth in the .ealth Industr* $ealthcare is definitely a gro!th business and should represent more than 205 of 9:; by the year 2020. #here are many reasons for the gro!th in health care other than the rise in the number of elderly citi8ens. 9overnment spending via the $ealth Care %ill could lead to a rapid rise in the number of hospital visits and thus the number of people re&uiring transportation to and from hospitals. % +hanging .ealth +are (*stem :ue to improvements in the &uality and efficiency of medical care there has been a trend that is moving a!ay from lengthy stays in hospital and more to!ards outpatient care. <utpatients don,t re&uire overnight stays in hospital but still have to come in regularly for a variety of chec" ups and treatments. )ore fre&uent hospital visits also re&uire more transportation as patients go bac" and for!ard bet!een their home and their hospital or medical center. Income (ecurit* 7nli"e many other industries medical transportation is reasonably resilient during economic do!nturns. )edical care and mobility are essential for most people and they are unli"ely to cut bac" on their spending in these areas even !hen the economy is

slo!. 'hy follo! the boom and bust cycles of the economy !hen you can have a business that brings in consistent profits in any economic climate= Another great thing about this business is that if you do get contracts !ith hospitals medical centers and schools you are dealing !ith reliable clients that are unli"ely to s"ip to!n or refuse to pay your invoice. And if you are getting government money through the )edicaid system then this income is guaranteed. .ome usiness ,otential *t is possible to start your non+emergency medical transportation business from your o!n home. >ou !ill be going out to meet your clients rather than having them come in to see you so you don,t need fancy loo"ing premises. As long as you have space to par" your vehicle and a small area to set aside for a home office then you can avoid the e.penses and monthly overheads associated !ith renting a commercial space. Low (tart up +osts 'hile you can invest hundreds of thousands of dollars in "itting out a modern fleet of medi+vans or ambulettes you can also opt to start out at a slo!er pace. *t is possible to start out in this business !ith a second hand van a mobile phone and a simple home office set up. Start out small and reinvest your profits so that you can slo!ly improve your fleet and refine your systems !ithout ta"ing on too much ris". /perational (implicit* Compared to other business models a medical transportation company or ambulette business is relatively simple. >ou 0ust need a system to receive in&uiries and schedule and dispatch drivers. >ou don,t need to manage a store front or order and ship inventory. As a service based business you can eliminate a lot of those headaches. Lac0 o1 +ompetition in (ome %reas

)edical transportation is not a glamorous field to be in and is therefore one of the last business opportunities that most people consider. >ou !ill find that e.cellent N-)# business opportunities e.ist in certain to!ns cities and communities around the 7S once you do your research. *n some areas people are forced to use a much more e.pensive regular ambulance service as there are no non+emergency medical transportation companies servicing their area. Non+emergency transportation is usually around ?05 cheaper than a regular ambulance. >our service is therefore not a ,hard sell, in cases !here your vans are the only alternative to e.pensive fully e&uipped and fully staffed ambulances. Low arriers to $ntr* #his business is not to be confused !ith regular ambulance service. >ou do not need any medical training in order to transport and assist the elderly and the disabled. Anyone can run a non+emergency medical transportation company or drive such a vehicle !ithout needing a university degree or advanced technical training. +hanging Li2es #his is one industry that you can genuinely feel good about being involved in. )any of your clients !ill lead difficult lives and face challenges that most people can only imagine. %y providing them !ith the transportation that they need to improve the &uality of their health and their lives in general you are doing them a great service. >ou are also doing your community a great service. <nce you ta"e the time to get to "no! some of your clients personally you !ill really start to see !hy a medical transportation company can be so re!arding. The ene1its o1 usiness /wnership %eing a business o!ner in general comes !ith lots of advantages. >ou become the master of your o!n destiny and can determine ho! much success you find by the amount of !or" that you put in. @ree yourself from all the constraints of a regular nine to five 0ob such as a boss a limited salary and a daily commute. Create something that

you can be proud of instead of !or"ing hard to build somebody else,s dream. >ou !ill also find that there are certain ta. advantages that go along !ith business o!nership.

.ow to -et (tarted

%y no! you must be a!are of the many compelling reasons !hy a non+emergency medical transportation business offers entrepreneurs such a great business model. 'ith the gro!th in the health care industry and the e.plosion of baby boomer retirees this mar"et is big and set to get even bigger still. *n this article !e loo" at ho! to start a non+emergency medical transportation 1N-)#/ business. Aearn about some of the steps that are involved and some of the aspects of this business that you !ill have to consider. Franchise or Independent /perator' #here are no! several players offering non+emergency medical transportation franchises. -ntrepreneurs benefit !ith the franchise model as they can operate under an established brand and get advice and training to get started and run a business. $o!ever !ith the franchise fees that must be paid initially and on an ongoing basis the upside potential for profit is reduced. *f you do your home!or" you !ill find that this business is not that difficult and it is possible to start up and thrive independently. +hoosing the Right %rea 9ive some thought to the demographics of the area !here you are setting up your business. Aoo" for statistics that prove that there are a good number of elderly disabled or )edicaid citi8ens living nearby. Compile a list of hospitals dialysis centers retirement homes assisted living centers and other relevant operations. >ou could even ma"e initial contact !ith some of these organi8ations and find out about the transportation solutions that they currently have in place.

Research the +ompetition *dentify all of the ma0or competitors that you !ill have in your area and evaluate them in terms of their strengths and !ea"nesses. >ou may decide to incorporate parts of their business model into your o!n business and re0ect other parts. Aearn as much as you can about them by reading their !ebsites and calling their offices to as" &uestions. >ou can even spend some time follo!ing around some of their vans in order to understand ho! they !or" and to find out e.actly !ho their customers are. Licenses and ,ermits Regulations and re&uirements for medical transportation businesses vary from state to state so you should ma"e in&uiries at the local level to find out !hat your obligations are. As you are in the business of transporting paying customers from one place to another you !ill need some "ind of permit 0ust as a ta.i driver does. >our application for this "ind of license !ill be handled by transportation authorities at the state or local level. :ue to the nature of this !or" some states !ill also re&uire businesses in this industry to be registered !ith local health authorities. #here may also be other paper!or" that needs to be done such as registering your business name getting a business license 1possibly more if you serve multiple counties/ and 8oning considerations if you run a home business. 3ehicles and $4uipment *t is common for medical transportation services to purchase regular vans either ne! or used and then have them fitted out to suit special needs clients. %usiness o!ners typically start out !ith one vehicle and gradually add to their fleet as their business gro!s. #he best vans for an ambulette have a high raised roof and door!ays. Access is usually on the side of the vehicle but can also be at the rear.

Some operators still use manual lifts to help them get !heelchair passengers into and out of their vans. $o!ever you should be able to provide a faster more professional service if you have a modern hydraulic lift installed. <nce inside the van !heelchairs can be fastened to various securing devices so that they don,t move around during transit. Behicles also re&uire customi8ed seat belts for !heelchair bound passengers. >ou can also improve the &uality of your service if you have some comforts li"e #B and air conditioning. A decent si8ed van that is properly "itted out should be able to transport four !heelchair bound passengers at a time as !ell as have e.tra seats available for caregivers. :epending on your clients you may also need a space in your van that !ill allo! you to fit in a passenger that is confined to a stretcher. Insurance ,olicies #o protect yourself from unforeseen events you !ill need to purchase a variety of insurance policies. A general liability insurance policy !ill ensure that you are covered in situations !here your customers are in0ured or suffer losses !hile they are in your care. >ou !ill also need regular automotive insurance to protect yourself in cases !here your vehicles are damaged stolen or involved in traffic accidents. ,a*ment /ptions :ecide on ho! you !ant to collect payment for your services. >ou may have to invoice medical institutions on a monthly basis or you may need to process credit card payments for individual clients. *f you service large clients li"e )edicaid then it may be as simple as receiving a chec" in the mail each month. #al" to some prospective clients and loo" at !hat their needs are. @ind out !hat payment options your competitors are offering. (er2ice .ours

9ive some thought to your operating hours. #he best ambulette services in the mar"et usually offer !ee"day service from early morning to late at night !ith decent hours on Saturdays too. As a sole operator you !ill be limited in the hours that you can ta"e on. As you e.pand into a multi+driver operation you !ill be able to offer more fle.ible scheduling to clients. (ta11ing Re4uirements *f you start out doing all the driving !hile also managing your business you !ill &uic"ly get burnt out. *n order to gro! you need to step bac" and hire some drivers so that you can move into a purely management and mar"eting orientated role. Staff should have a drivers license that allo!s them to ta"e passengers and they may also be sub0ect to certain standards or re&uirements at the local level. No matter !hat you should ma"e sure that your staff are trained on ho! to do the practical side of the 0ob. #hey need to "no! ho! to assist passengers and their caregivers as they get in and out of vehicles. #hey should also be instructed to smile and ma"e pleasant conversation if the opportunity arises so that they help your brand to gain a positive reputation. Mar0eting #here are many different !ays to mar"et a non+emergency medical transportation business. @or some ideas on mar"ets that you can target read our article on )edical #ransportation %usiness <pportunities. *nitially you !ill have to go out and meet prospective clients and possibly even bid to try and !in contracts. $o!ever if your team are doing a good 0ob then you !ill find that eventually business !ill come directly to you through !ord of mouth and referrals. >ou can of course improve your chances of getting calls from private paying clients if you do a little advertising. A !ebsite that comes up in the search results !hen people search for ambulette services in your area can really help. A small >ello! ;ages listing !ill also almost certainly be !orth the cost. >ou can pretty much try any method that other local service businesses are using to promote themselves. Behicle advertising is

great for e.posure and flyers postcards or door hangers may !or" as !ell.

N$MT usiness /pportunities

'hen it comes to starting a non+emergency medical transportation business or ambulette service you need to understand the mar"et. <nce you get a better understanding of the mar"et you can then decide if you !ant to target a particular sector or if you !ant to provide a more general service. #he mar"et is basically comprised of those !ho re&uire assisted transportation from one place to another on a one off occasional or regular basis. *t includes those !ho are not mobile enough to !al" drive or get in and out of public transport independently. #he mar"et does not include those !ho re&uire emergency medical care and the speed and trained paramedics on board a regular ambulance. Aet,s ta"e a closer loo" at some of the mar"ets that you may consider targeting as you set up and develop your non+emergency medical transportation business 1N-)# business/. >ou can then evaluate the potential that each of these opportunities has in your area and decide on !hich ones you !ant to go after. ,ri2ate ,a*ing +lients Some businesses in this industry target private paying clients. #his "ind of client usually pays full price and you can benefit from regular business if you serve them !ell and ta"e some time to build a relationship. ;rofit margins !ith this "ind of customer are great. $o!ever you !ill have to do some mar"eting to reach them at first until you build up a good reputation and start getting ,!ord of mouth, referrals. Medicaid /pportunities Another great mar"et opportunity to target is )edicaid a federal program that provides healthcare to those on lo! incomes the elderly and disabled. )edicaid also

provides for these individuals to receive free transportation to and from their medical appointments if necessary. *n some states )edicaid uses regional bro"ers !ho determine !ho is eligible and ho! they should be transported to and from their appointments. *n other states you !ill have to see" approval from )edicaid directly. Rates !ill vary so you !ill have to do a little research in order to find out if it is !orth transporting )edicaid clients in your area. $o!ever such an opportunity usually means a good monthly volume of decent paying !or" as !ell as chec"s that come on time li"e cloc"!or". Medical Institutions )any transportation businesses get contracts directly !ith hospitals medical centers dialysis centers and various other medical institutions. Such relationships can provide you !ith one off clients !ho are being discharged from the emergency room or regular clients !ho have appointments for treatments as often as three times a !ee". Retirement +ommunities and Nursing .omes Another great mar"et to tap into is retirement homes and assisted living communities. #hese people !ho are aged or disable often re&uire transport for medical appointments. #hey !ill also often need transport for other purposes such as shopping recreation or visiting family members. /pportunities with (chools Schools often re&uire daily transportation services for disabled students. Such a contract could provide one of your vans !ith several hours of !or" every morning and afternoon transporting these children to and from school. #hey may also re&uire speciali8ed transportation for occasional school field trips. #or0ers +ompensation

)any N-)# businesses also provide transportation to those on !or"ers compensation. ;eople !ho have been in0ured at !or" often need transportation to and from medical clinics for chec"ups and treatments. Contact !or"ers compensation authorities in your state to find out ho! you can go about applying to provide medical transportation to recipients of !or"ers compensation. A list of official offices by state can be found here. Local .ealth %uthorities <nce you business is set up licensed and in compliance !ith local regulations you can then submit your details to health authorities in your state. $ealth authorities often receive re&uests from individuals or organi8ations loo"ing for non+emergency medical transportation. *f your business is on the list of contacts that is given out in cases !here such in&uiries are received then you can pic" up some easy business !ithout much effort.

.ow to Name 5our usiness

'hen it comes to starting a non+emergency medical transportation business it is important that you choose a suitable name. )any entrepreneurs overloo" the importance that a name can play in the development of a brand. #he right name can help you to ma"e a great first impression on people in your mar"et and it can help you to build long term relationships and reputation. :on,t ma"e the mista"e of leaving this important decision to the last minute li"e other business o!ners do. ;ut some thought into coming up !ith a great name that !ill serve your ambulette business !ell as you develop and gro! over the years. $ere are a list of points that you may consider as you go about the process of naming your non+emergency medical transportation business 1N-)# business/.

Rele2ance and ,ro1essionalism A great name should be relevant to !hat your business does. Rather than having something obscure that leaves people guessing you may as !ell use the !ords ,medical, and ,transportation, in the title. #his !ill immediately communicate to people e.actly !hat it is that you do. >ou could even use other !ords that further define your services. *t can be a good idea to avoid getting too specific though as you may change your business model further do!n the line and cater to a different section of the mar"et. #he &ualities that people !ill loo" for in a medical transportation business are of course professionalism and reliability. >our name should instill confidence in people and let them "no! that you are indeed a reliable operation that is committed to running a safe and reliable ambulette service. @or this reason many small business o!ners use their o!n surname or first name as a part of their business name. e 6ni4ue7 /riginal and Memora&le 'hile the !ord ,transportation, !ill hardly be uni&ue in the industry you can combine it !ith other !ords to create something ne! and original that !ill stand out. #a"e a loo" at !hat other local non+emergency medical transportation companies have done !ith their names and ma"e sure that your name clearly distinguishes your business from theirs. A great name should be memorable. As !ell as giving people a good first impression it should be easy enough and catchy enough so that it stands out in their minds over the long term. Create a list of names and then run them by some of your friends and colleagues to find out !hich ones have a positive impact on them. As" them about the names again several days later and see !hich ones they are able to remember. Legal +onsiderations #here are also important legal considerations to thin" about !hen it comes to choosing

a name. >ou absolutely must ensure that the name that you select is not already in use by another business in the same industry. Run a names search through the database at your county cler"s office and do a thorough chec" online to ma"e sure that your selection !ill not cause you to encounter legal issues further do!n the road. ,ractical and Functional 9ood choices for names !ill typically be short and practical. A short name is easier to remember and more practical !hen it comes to using it on business cards or using it to ans!er the phone. :on,t mess around !ith !ords that are difficult to spell or pronounce. >ou may also consider a name that !or"s !ell as an acronym. @or e.ample ,Sacramento #ransportation Services, could be called S#S for short. Remember that you !ill !ant to get a !ebsite set up at some point. %efore you finali8e your choice and register a name for your business you should also snap up any relevant domain names. rainstorming 1or Ideas #o help you come up !ith some name ideas put a big list of relevant !ords together. #hese !ords could be related to your location your industry your mar"et or the services that you offer. >ou could also come up !ith !ords related to reliability and friendliness that describe your service. -motional sounding !ords can also have a strong impact. As !ell as your o!n thoughts you can also as" other people for their opinions. Aoo" over some of the names that other medical transportation businesses around the !orld are using for ideas. Names in use by businesses in the transportation and medical industries may also provide some inspiration. Some entrepreneurs even hire branding or mar"eting consultants to help them come up !ith the right name and brand image before they go into business. *t could be a

good idea to see" professional help if you really feel that you are not up to this important tas". % Name to e ,roud /1 ;erhaps most importantly the o!ner of the business has to love its name. >ou ideally need a name that you can feel proud to be associated !ith. #he right choice should inspire you help you to focus on developing the business and ma"e you !ant to !or" hard to gro! your brand name. <nce you have started your business it is not easy to bac"trac" and ma"e changes to your name. if you do so then you !ill come up against many e.penses relating to alterations to paper!or" and printed promotional materials. Changing your business name is one of the best !ays to confuse and isolate your customers unless the process is carefully managed. @or the above reasons it is essential that you ensure that you have a great name for your non+emergency medical transportation business right from the start. 9ive this important decision the time and attention that is deserves. I hope that you enjoyed this short report. For more information check out MedicalTransportation i!.com