Non-emergency medical transportation (NEMT) companies provide a valuable service for those who cannot travel on their own due to health reasons. But how much money can you expect to make if you start your own NEMT company?
This article will explore the average income of a NEMT business and the potential income you can expect.
How Much Do NEMT Companies Make?
The average annual income for a NEMT business is $50,000-$60,000. This figure can vary depending on the size and location of your business and the services you provide. NEMT companies in larger cities and those that offer a wider range of services tend to make more money than those in smaller towns or that only offer basic transportation services.
For example, a small NEMT company in a rural area that only provides transportation to and from doctor’s appointments is likely to make less money than a larger company in a city that offers transportation to and from work, school, and other appointments.
Income Potential for a Non-medical Transportation Business
The income potential for a NEMT company depends on several factors, including the size of your operation and the services you offer. For example, if you have a large fleet of vehicles and offer various transportation services, you could make hundreds of thousands of dollars per year. However, if you have a small operation with only a few vehicles, your income will be much lower.
The income potential for NEMT companies ranges from a few thousand dollars per year for small, part-time operations to hundreds of thousands of dollars per year for larger businesses. The low end is typically around $50,000 per year, while the high end can be over $1 million. Knowing your income potential and business’s fee structure is important to understand when using a business plan template to complete the financial projections of your medical transportation business plan.
Keep in mind that as you scale the business, your business operating costs will follow. Therefore, it’s essential to streamline operations.
Business Operating Costs NEMT Services
NEMT businesses have many operating costs, such as fuel, vehicle maintenance, and employee salaries. If you are not careful, these costs can quickly eat into your profits. However, if you manage your expenses carefully, you can still make a good profit.
A breakdown of the monthly costs is as follows:
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- Vehicle fuel: $200
- Vehicle maintenance: $100
- Employee salaries: $1,500
- Insurance: $200
- Advertising and marketing: $100
- Total monthly costs: $2,200
As you can see, the most significant expense for NEMT businesses is employee salaries. If you can find ways to reduce this cost, you will have a much higher profit margin. For example, incorporating software will streamline operations. Therefore, you will not need as many employees. The software also allows you to dispatch the closest driver to a patient, saving on fuel costs.
NEMT Services Outlook
The NEMT industry is expected to grow in the coming years. The aging population and the rise of chronic diseases will increase the demand for NEMT services.
The number of Americans over the age of 65 is projected to grow from 40 million in 2010 to 55 million by 2030. This is an increase of 38%.
At the same time, the number of Americans with chronic diseases is expected to rise from 133 million in 2007 to 157 million by 2020. This is an increase of 18%.
The rising demand for NEMT services will lead to increased profits for NEMT businesses. If you are thinking about starting your own NEMT company, now is an excellent time to enter the market.
Conclusion
If you are considering starting a NEMT company, you can expect to make an average of $50,000-$60,000 per year. However, your income potential is much higher if you have a large operation with multiple vehicles and offer various transportation services. Just be sure to manage your expenses.