Medical transportation is a vital service for patients who need to get to and from medical appointments. In many cases, patients rely on family members or friends to drive them to their appointments. However, sometimes this is not possible and patients have to look into hiring a medical transportation company. If you are thinking about starting a medical transportation business, you may wonder how much money you can expect to make.
Income Potential for Medical Transportation Companies
Medical transportation companies typically charge by the mile. The average rate is $2.50 per mile. However, rates can vary depending on the vehicle used and the trip’s distance. For example, a luxury car service may charge $5.00 per mile, while a non-emergency medical transportation (NEMT) service may only charge $1.50 per mile.
Income potential depends on how many miles you can drive in a day. If you can only do ten trips per day, you can expect to bring in $250. However, if you can do thirty trips per day, you can expect to bring in $750.
Of course, how much money you make also depends on how much you spend on operating costs.
How Much Do Medical Transport Companies Make?
The average medical transportation company makes between $30,000 and $40,000 per year. However, several factors can affect how much money a company makes. For example, a company that only provides transportation to patients within a small geographic area is likely to make less money than a company that provides transportation to patients in multiple states. The size of the company’s fleet and the number of employees also influence how much money a company makes.
A medical transport company in a small town with a fleet of two vans and three employees is likely to make less money than a medical transport company in a large city with a fleet of 20 vans and 40 employees.
How much money you make also depends on how much you spend on operating costs.
Costs to Run Medical Transport Companies
The most significant cost for medical transportation companies is fuel. The average cost of gasoline is $2.50 per gallon, and the average car gets about 25 miles per gallon. This means that each mile costs approximately 10 cents in fuel. In addition to fuel, companies have to pay for vehicle maintenance, insurance, and employee salaries.
A breakdown of the monthly costs is as follows:
- Fuel: $1,000
- Vehicle maintenance: $500
- Insurance: $200
- Employee salaries: $2,000
In addition, it’s possible to manage these costs. For example, you may be able to find a cheaper insurance policy or negotiate with your employees for a lower salary.
When you reconcile expenses with revenue, the average medical transportation company makes a profit of about 10%.
Medical transportation companies can expect to make between $30,000 and $40,000 per year. However, income can be affected by several factors, including the size of the company’s fleet, the number of employees, and the geographic area served. Therefore, consider those factors.