Absolutely. The great thing about getting into the NEMT business is that most people already done the most expensive step, and that is acquiring a vehicle. I would advise, that if you do start with one vehicle, ensure that your vehicle is reliable and free of mechanical problems. Also, it is important that you start with a vehicle that is clean and dependable since you wont be starting with a back-up vehicle in case one vehicle has mechanical failure.
NEMT business has really expanded over the years. But some things have remained the same. Some of your standard transports are listed below. • Doctor Visits • Specialty Care Visits • Dialysis • Chemotherapy • Rehabilitation • Hospital Discharges
I get asked this question a lot, and when I do I ask, How much money do you want to make? I ask this because every business is different, and your income is a direct reflection of the amount of effort you put into your business. But, for informational purposes you can expect to earn an income averaging between $40,000 and $50,000 annually for a basic operation.
9 Tips for Starting your NEMT Business
Tip # 1: Have a mindset to succeed
I say this because I have spent the last 20 years opening thousands of medical businesses for medical professionals, investors and individuals wanting a better life financially that comes with business ownership. I can’t count the number of times that I have heard new business owners who have the mindset that just because you put a new sign on your door that says “Open for Business” think that people are going to be banging down the door for their business. Totally opposite! When you start a new business, you’re the new kid on the block and you have to work your butt off to let others know that you are ready to give them the services that others are not providing. What ever that is. That means you must be willing to do whatever it takes whether marketing, working late hours into the night in preparation for the next business day, investing in your business, or just willing to put in the effort to succeed!
Tip # 2: Register Your Business
Once you have decided to pursue opening your NEMT business, you want to set up the legal structure of your business through a corporation. Some reasons for setting up a corporation are:
- Limit the liability of the owners of the business.
- Corporations often gain tax advantages over operating as a Sole Proprietor.
- Credibility- Helps establish credibility with customers, employees, investors, etc.
- Transferring ownership – Corporations can continue long after the owners die allowing the business to continue on.
- Ability to raise capital from potential investors due to the limited liability offered to owners.
Tip # 3: Have a game plan.
There is so much opportunity in non-medical transportation that it can be overwhelming to the point you don’t know where to begin. I always tell my clients, while you don’t want to get tunnel vision on the services you can provide, try to be the best at one aspect of your business. Learn as much as you can about the industry, trends and adapt. NEMT is a competitive business and you have to be able to have a plan in place to know how to market your services and wear various hats in the beginning. That means being the customer service, marketer, HR, payroll, and public relations for your business. Remember, if you don’t have a plan, then you’re planning to fail.
Tip # 4: Start with a reliable vehicle.
Notice I said a “reliable” vehicle, not “new” vehicle. Also, it’s ok to start your business with 1 vehicle. The most important due to the nature of your business is to have dependable transportation for your customers to ride in. This brings up another point. You may not start with the latest model vehicle, but that doesn’t mean you should not take pride in having clean vehicles inside and out for your customer to ride in. It’s nothing more disappointing than to see a NEMT vehicle riding on the streets that look like crap and is an eye sore. You want to have pride in your business and the way you keep your vehicles will show it.
Tip # 5: Marketing and Branding.
Marketing and Branding your business is your way of hanging the “Open for Business” sign on your door. Now days, having a website is the first opportunity to tell your customers what your company is about and what services you offer. Marketing and branding can be done by having a website so potential contractors and customers can find you. Most legitimate businesses have a website. Remember, you’re a business owner and you should always be looking for opportunities to promote your business, this means keeping business cards on your person. I guarantee if you do, you will begin to always notice opportunities to grow your business as you go about your normal day.
Tip # 6: Get Commercial Insurance Coverage
There are various aspects to commercial insurance. When buying a commercial insurance policy, NEMT providers have to consider vehicle damage, bodily injuries to drivers and passengers in the event of a collision, and third-party damage to properties or persons. NEMT insurance also includes general liability coverage, another standard type of coverage for transportation companies. Remember, if you are seeking to contract with a transportation broker, they generally will require higher dollar amounts of coverage which could translate to higher premiums.
Tip # 7: Hire Professional, Courteous and Safe Drivers
Drivers are an extension of your organization and should represent what your company stands for. Keep this in mind when hiring drivers. Also, be willing to invest in the training and professionalism of your drivers. Your drivers should be people persons, have patience and understand the importance of safe driving.
Tip # 8: Have driver Policies and Procedures in Place
This is an extension to Tip # 7. As a new company, you will need to establish standards for your new operations. This is accomplished by have a Standard Operating Procedure manual and Drivers handbook. Standard Operating Procedures leaves no guess work for your personnel and drivers on how your company intends to operate and what is expected of everyone in order to have an successful operation.
Tip # 9: Scheduling Software
Offering your customer great customer service directly ties in your ability to be on time for your pick-up and drop off of your customers. Having a dependable scheduling and tracking software can be valuable to your business. Being able to track vehicles and riders in real-time should be key feature when considering using software. You will find the money invested in this software will be well spent and will translate to repeat business and an increase in your profits.