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How to start a Medicaid transportation business?

Updated: Aug 11, 2022

Getting to and from medical appointments is simple when you're healthy and have your own car, but it's a major challenge for anyone who has no vehicle or is ill, elderly or disabled. Non-emergency medical transportation companies address that need, and starting one – while it requires the usual planning and paperwork – is relatively straightforward.



Medicaid Transportation Business Start Up Costs


At this point, you might be asking yourself this question: How much does it cost to start a medical transportation company?

With all of the associated regulatory start-up costs, it can take hundreds of thousands of dollars to start your own non-emergency medical transportation company. You need to register your business; cover legal, insurance, permit, and licensing fees; acquire a facility; purchase vehicles; pay utility bills and wage expenses; launch a website; and cover other costs.


Choosing the right location for your Medicaid Transportation Business


Because everyone needs healthcare services, you can also open a profitable business in practically any part of the country. That said, you still want to do your due diligence ahead of time to figure out whether it makes sense to open in specific markets.

For example, if there are a lot of non-emergency medical transportation companies in a small city, you may want to open up shop somewhere that doesn’t have as much competition.

Look for locations that have dialysis centers, hospitals, nursing homes, and other senior assisted-living facilities nearby. That’s where you’ll get most of your revenue.

Don’t forget that some students need non-emergency medical transportation, too. You may also be able to secure contracts through local school districts.





Starting Your Medicaid transportation business


You’d be surprised at how many people forget to tackle the fine print when they’re launching a business. First things first: you may want to incorporate your medical transport company to start things off. Incorporating can ensure you won’t lose your personal assets in the event you get sued, and should be something you consider.

You’ll also need to figure out which kind of driver’s license you need to take people from one location to another, which varies on a state-by-state basis. Additionally, you’ll need general liability insurance, car insurance, and worker’s compensation insurance in the event one of your employees is injured on the job.






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