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How to start a NEMT Business?

Updated: Aug 11

Starting your own non-emergency medical transportation company may seem like a daunting task. However, when you take the process step-by-step, it’s achievable for anyone with a willingness to learn and work hard to create a successful business.

More than 4 million Americans miss or delay their healthcare appointments every year due to lack of adequate transportation. This is a staggering figure, especially when you consider the important appointments that are missed—routine checkups, lab tests, rehab sessions, pharmacy pickups, dentist visits, and more.

Luckily, Medicaid beneficiaries have the opportunity to receive rides, if eligible, to and from their appointments. This benefit is known as non-emergency medical transportation.

NEMT is a rapidly growing industry. Elderly and disabled folks across the nation need reliable transportation, so starting a non-emergency medical transportation business is a worthwhile venture, no matter where you’re located.



How do I start a successful NEMT Business?


One of the most significant NEMT business start-up prerequisites is preparing and organizing legal documents adequately. To get the business up and running, you need to take care of certificates, licenses, and permits for the company. Keep in mind that requirements depend on the city and state. In any state you want to launch an NEMT business and provide Medicare transportation services, first, you have to check rules for NEMT companies in that particular state and after that prepare documentation.


At the time you are going to start a NEMT business, the very first thing you have to do is to choose the company’s legal status, that is; LLC, sole proprietorship, or partnership. Every status has its benefits and disadvantages and one or the other will be the most appropriate for your business. But, prior to making a decision, you have to understand that the form of taxation relies on the company’s legal structure. Apart from that, you have to think about the business in the future. Look for a lawyer so that he/she assists you to pick up the right and suitable company’s legal status.






NEMT Start Up Costs


Right now you might be wondering; how much does it cost to launch a medical transportation company or what are NEMT rates?

With all of the related regulatory start-up costs, it can cost hundreds of thousands of dollars to launch your own non-emergency medical transportation company. You have to enroll, register or put on record your business; pay insurance, permit, legal, and licensing fees; obtain a facility; buy vehicles; pay power bills and wage expenses; launch a website, and; cover other costs.

Prior to moving forward any further, make certain you have sufficient money to start the business. If you don’t have, you may have to sell some share in your business to an investor, request a small business loan, or get a business line of credit.


Negotiating NEMT Insurance Costs


Well, you must insure not only vehicles but also all other things that medical transportation drivers will take from one place to another. Multipurpose insurance is a little costlier; but, it provides peace of mind to you, your drivers, and clients. Any harm because of accidents or bad road conditions will be included. By doing so you and your clients will not suffer any loss.

Apart from that, it would be nice if an insurance company can amend the contract as your business flourishes so that you control all the costs from the beginning.









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