Starting a non-emergency medical transportation (NEMT) business is a great way to help those in your community who need it most.
There are many things to consider when starting a NEMT business, such as licensing and insurance requirements, what services to offer, and how to market your new business.
This article will provide an overview of everything you need to know about starting a NEMT business, so you can get started on helping your community today.
Here are the ten steps to start building a non-emergency medical transportation business.
Ten Steps to Launching a New Non-Emergency Medical Transportation Business
1. Choose Your Type of Non-Emergency Medical Transportation Business
The first step in launching a non-emergency medical transportation business is to identify the type of non-emergency medical transportation business you want to launch. You might choose from the following types among others:
- Air Ambulance
- Ground Ambulance
- Wheelchair Van Service
2. Name Your Non-Emergency Medical Transportation Business
Give your non-emergency medical transportation business an identity so people will think of it as a well-known and respected brand. You can take the name of your non-emergency medical transportation business from your industry, focus on a geographical location, or use your own name among other options.
The main goal for naming your non-emergency medical transportation business is to make it sound appealing and trustworthy so that patients and referral sources will want to use your services.
3. Determine Your Non-Emergency Medical Transportation Business Model
There are several possible types of business models for a non-emergency medical transportation business including:
- Scheduled Service: This type of business model typically provides transportation between appointments or to and from medical facilities regularly.
- On-Demand Service: This type of business model is characterized by providing transportation on an as-needed basis, often with little or no notice.
- Courier Service: This type of business model involves the transport of medical supplies and specimens between facilities.
No matter which model you choose, make sure that it aligns with your business goals and the services you offer.
4. Choose a Legal Form for Your Business
By incorporating your non-emergency medical transportation business, you will limit your liability. You can incorporate as a Limited Liability Company (LLC), a C Corporation (C-Corp), or an S Corporation (S-Corp). Or you can operate as a sole proprietorship.
The business structure you choose for your non-emergency medical transportation business will determine the amount of taxes you pay and which state or federal tax forms you need to file.
Read our article comparing the most common non-emergency medical transportation business structures.
5. Write a Non-Emergency Medical Transportation Business Plan
All non-emergency medical transportation business owners should develop a business plan.
A business plan is a document that outlines the goals, strategies, and operations of a business. It can be used to secure funding from investors or lenders, as well as to guide the day-to-day operations of the business. The business plan should include information on the company’s products or services, market analysis, financial projections, and management team among other things.
When developing your non-emergency medical transportation business plan and strategy, you should think about the following questions your customers might have:
- What services does your non-emergency medical transportation business offer?
- How do I schedule a pickup or drop-off?
- What are your rates?
- Do you provide wheelchair-accessible vans?
- How long will it take to get to my destination?
- Can I bring my pet with me?
- What is your cancellation policy?
Read our article about how to write a non-emergency medical transportation business plan.
6. Apply for the Necessary Permits and Licenses
There may be required licenses and permits you need to obtain before launching your non-emergency medical transportation business.
For example, you may need to obtain a commercial driver’s license (CDL) if you plan on driving. If you are hiring drivers, they will need a CDL. Depending on your state, you may be required to have a special permit or insurance coverage for operating a non-emergency medical transportation business.
You must also register your non-emergency medical transportation business as a legal entity with the state where you plan to do business. You can simply file an online form through your Secretary of State website.
Registering with the federal government is also essential so you can properly pay taxes for your business. You will also need an Employer Identification Number (EIN), which you can apply for at the IRS website, if you plan to hire employees.Read our article about obtaining the proper non-emergency medical transportation business licenses.
7. Determine Your Budget & Apply for Funding as Needed
In developing your non-emergency medical transportation business plan, you will figure out how much funding you need to start and grow your business.
If you have your own funds to invest in your non-emergency medical transportation business, you may consider taking advantage of that. In addition to your personal funds, other forms of potential funding for your non-emergency medical transportation business include traditional bank loans, SBA loans, credit cards, angel investors and family and friends.
Read our article about how to fund your non-emergency medical transportation business.
8. Get the Technology & Software Needed to Run Your Business Efficiently
When you start your non-emergency medical transportation business, it’s essential to have the right technology in place to maximize efficiency. You definitely need a computer with Internet access, and accounting software for tracking expenses and revenues.
You may also want to invest in GPS tracking for your vehicles and dispatch software to help you manage your drivers.
Read our article about the technology and software you need to run a non-emergency medical transportation business.
9. Market Your Non-Emergency Medical Transportation Business to Potential Clients
Before you start selling your services, you have to let the world know you exist. The first step is to create a website so people can learn more about your services and how they benefit them.
After you launch your website, start promoting it through social media channels like Facebook, LinkedIn, and Nextdoor. Also consider networking with other people in the non-emergency medical transportation industry through social media and blogs so they can help share your business.
You also need to start gathering the materials needed to execute on your promotions strategy, which is your strategy for attracting new customers. Non-emergency medical transportation businesses should consider the following promotional strategies for which you should start getting prepared:
- Sponsoring local charity events
- Offering free or discounted services to nonprofit organizations
- Distributing promotional materials (e.g. brochures, business cards, flyers) at community events
- Conducting informational interviews with local businesses and organizations
- Participating in trade shows and conferences related to your industry
Read our article about how to market your non-emergency medical transportation business for more tips.
10. Get New Clients & Grow Your Business
When you promote your services, you’ll start to get interest from potential clients.
Make sure you’re ready to serve these clients. Also, be sure to establish systems to ensure consistency and reduce costs. And be sure to find and train the right people to help you grow your non-emergency medical transportation business.
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Read our article about how to effectively grow your non-emergency medical transportation business to learn more.
Starting a Non-Emergency Medical Transportation Business FAQs
Why Start a Non-Emergency Medical Transportation Business?
There are many reasons to start a non-emergency medical transportation business. These businesses provide an essential service to those who cannot drive themselves or do not have access to public transportation.
Starting a non-emergency medical transportation business is also a great way to be your own boss and build something of your own. If you’re passionate about helping others and have a strong entrepreneurial spirit, this could be the perfect business for you.
What are Some Tips for Starting a Non-Emergency Medical Transportation Business?
Here are some tips for starting a non-emergency medical transportation business:
- Research the market
- Create a business plan
- Get the proper licenses and permits
- Find the right vehicle for your business
- Promote your services
- Get new clients and grow your business
Where Can I Find a Simple Checklist for Starting a Non-Emergency Medical Transportation Business?
A simple checklist to use when starting a non-emergency medical transportation business is as follows:
- Choose Your Type of Non-Emergency Medical Transportation Firm: This should be based on what you are best at and how much experience you have. Remember to keep your interests, skills, and experience in mind at all times.
- Name Your Non-Emergency Medical Transportation Business: This should be done with care, as your brand is important for attracting the right customers. A simple, memorable name will go a long way.
- Choose a Legal Form for Your Business: Whether you choose to become a sole proprietorship, partnership, LLC, corporation or another option will depend on your business. Ensure that you are aware of all the implications of each type.
- Determine Your Non-Emergency Medical Transportation Business Model: Determine how your business will make money. Will you sell products, services, or a combination of both?
- Write a Non-Emergency Medical Transportation Business Plan: Your business plan will also help you determine your start-up costs and will provide a roadmap with which you can launch and grow.
- Apply for the Necessary Permits and Licenses: In most locations you will be required to apply for a business license and/or permits before you can begin operations.
- Determine Your Budget & Apply for Funding as Needed: You will need to know how much money you have to spend on all of your business-related expenses before opening any doors. If needed, apply for a small business loan or other funding options.
- Get the Technology & Software Needed to Run Your Business Efficiently: You need to have the right tools in place to succeed. Implement software that will help you manage your time, contacts, and business operations in general.
- Market Your Non-Emergency Medical Transportation Business to Potential Clients: A solid marketing plan will be crucial to your success. It should focus on attracting the right customers so that you can provide them with the services they truly need.
- Get Clients & Grow Your Business: Once you have a solid marketing plan, it's time to actively pursue and secure those who could benefit the most from your services.
Summary
Starting a non-emergency medical transportation business can be a great way to help people in your community and make a profit while doing it. To get started, research the market, create a business plan, and apply for the necessary licenses and permits. Once you have everything in place, start promoting your services online and attract new clients.