Supporting Medical Transportation Providers across the U.S.
The United Medical Transportation Providers Group (UMTPG) is designed and dedicated to helping you be successful in the medical transportation industry. As the elderly population continues to double in size and demand, the medical industry grows and becomes more dynamic and technologically advanced, the demand for various support services increases.
Intrigued by maximizing the growing opportunities in our industry, many new and experienced entrepreneurs see the value in owning a Non-Emergency Medical Transportation (NEMT) service. However, despite the many diverse and growing opportunities in our industry, many providers fail because they don't understand various aspects of our industry and, thus, don't know how to properly scale and multiply their business.
Many providers, some who are experienced entrepreneurs, are confused by the wide array of misinformation readily available online. Such inaccurate information typically leads to frustration and a waste of time, effort, and sometimes money.
Whether it's finding the right vehicles, equipment, insurance, and information, the United Medical Transportation Providers Group is dedicated to providing you with targeted and accurate information and opportunities so you can properly build and scale your business. The UMTPG will continue to serve as a content rich venue to glean relevant information and resources associated with our growing industry.
United Medical Transportation Providers Group
The Benefits and Challenges Associated in Starting an NEMT B
Benefits of Starting an NEMT Business
Starting a NEMT business can be a fulfilling and lucrative venture, but do not be fooled by online scammers, it is definitely NOT a get-rich-quick scheme. Let's start by discussing some of the many benefits and opportunities followed by some challenges:
Growing Demand:
- The aging population and increased need for accessible transportation for people with disabilities. memory care issues, or chronic conditions ensure a steady demand.
- Hospitals, emergency rooms, dialysis centers, associated medical centers, and Medicaid programs rely on NEMT providers to literally accomplish their mission.
Social Impact:
- NEMT businesses provide essential services and improve the quality of life for the elderly, those with mobility issues, and seniors groups that require reliable transportation to medical appointments, essential services, and social gatherings.
Flexibility in Business Model:
- You can and should start small with one or two vehicles and scale as demand grows using a "controlled growth" strategy.
- Options include contracting directly with hospitals, nursing and skilled care facilities, assisted living, group homes, senior communities, Medicaid, brokers, private pay customers, and workers comp.
Recurring Revenue:
- Direct-pay and private-pay contracts with healthcare providers and nursing facilities can provide greater per trip ROI income as compared to Medicaid or brokers and managed care sources.
Low Barrier to Entry:
- Compared to other transportation businesses, the initial investment can be relatively low, especially if starting with used vehicles.
Potential for Scalability:
- Expanding services to include additional services, expanded hours, and different geographic areas can significantly increase revenue.
With an increasing senior population, starting a NEMT business can be a lucrative venture.
Challenges of Starting an NEMT Business
Regulatory Compliance:
- Regulations definitely vary by state, but you will, obviously, need to comply with all applicable local and state required regulations to include driver certifications, insurance requirements, and vehicle inspections.
- Medicaid contracts often come with stringent compliance standards. Be sure to thoroughly read, review, vet, and negotiate your contracts.
Initial Investment:
- Although more cost effective as compared to other transportation and logistic vehicles, the costs of acquiring and insuring vehicles for wheelchair and stretcher accessibility is definitely more expensive as compared to insuring personally owned vehicles or something common such as a rideshare service.
Operational Logistics:
- Coordinating schedules, routes, and on-time pickups/drop-offs need to be precise. You are transporting "human cargo" as compared to small packages, so customers need to be safe and on time to appointments.
Competition:
- The industry can be competitive, with established providers and new entrants vying for the same clients or contracts. Surprisingly, this is why regulation can prove to be an ally because it serves as a legitimate barrier to entry to keep those who are less than serious out of the marketplace.
Unpredictable Revenue:
- Although demand is only increasing, revenue can fluctuate based on hospital and facility dynamics, periodical cancellations due to factors such as a customer becoming sick, periodic patient no-shows, weather related issues, and other unforeseen issues that can cause cancellations.
Dependence on Contracts:
- If a significant portion of your business relies on Medicaid-based work either directly or through a broker or managed care organization, you will be exceptionally vulnerable. Brokers bid on contracts with the state, municipalities, managed and healthcare organizations. As they change, so too will your trip volume, rates of reimbursement, and overall revenue.
Staffing Challenges:
- Hiring and retaining reliable employees is a challenge for every business in every industry, and the NEMT industry is no different. Finding and training drivers, especially in more rural areas, can be challenging.
Key Success Factors for Scaling Your NEMT Business
Market Research: Understand your target market, your level of competition, and the specific needs of the population you plan to serve. To learn more about obtaining a custom market analysis, Click Here.
Strong Network: Build relationships with area hospitals and nursing facilities in an effort to establish direct-pay and contracted work.
Efficient Operations: Invest in the "right" vehicles and staff training to ensure safe and effective operations.
Compliance Focus: Stay up-to-date with regulatory changes and ensure all vehicles and staff meet compliance standards.
Customer Service: Provide reliable, safe, and empathetic service to build trust and encourage repeat business.
Our Purpose
The United Medical Transportation Providers Group is a group of providers for providers. Our purpose is to provide a networking and educational platform to best serve our member-providers and enhance the medical transportation industry.
Our Vision
To grow a strong network of the most skilled, well equipped, knowledgeable, and profitable member-providers to further advance our industry opportunities while positively representing the UMTPG.
Our Mission
To educate, train, and support our member-providers so they are properly equipped with the best knowledge, understanding, and skills to be successful in our growing industry.
Limited Time - FREE NEMT Ebook with New UMTPG Memberships
Yes, you read that correctly! To help new and experienced NEMT providers maximize opportunity and limit mistakes, all new UMTPG members will receive a FREE copy of Joel Davis' best-selling ebook, "How to Build a Million Dollar Medical Transportation Company."