How to Start a Non-Emergency Medical Transportation (NEMT) Business

Author: Kelly Richardson

Kelly Richardson

8 min. read

Updated November 13, 2023

Free Download:  Sample Medical and Health Business Plan Templates

What’s a non-emergency medical transportation business? NEMT services help people get to pre-scheduled healthcare appointments, including doctor visits, rehab, clinical testing, follow-up exams, and more.

The demand for safe and reliable public transportation for people with medical issues and disabilities, particularly in rural communities, continues to grow at remarkable rates. If you’re thinking about starting a NEMT business, read on.

  • The state of the NEMT industry

“Transportation issues shouldn’t prevent anyone from getting to or from a doctor’s appointment,” explains Imran Cronk, staff writer for the popular life sciences and medicine journalism website STAT .

“But they do just that for an estimated 3.6 million Americans. Some of these individuals don’t have cars or access to public transportation. Others can’t afford taxis or Ubers,” says Cronk.

There is a growing market opportunity in the NEMT services industry. The overall population of elderly and disabled patients is increasing. Plus, as a result of the Affordable Care Act, more preventative and follow-up treatments are covered by health insurance plans. In most areas, there simply aren’t many wheelchair-accessible vehicles in public transportation fleets.

Josh Komenda , CEO of VEYO, suggests that there’s a large population of those who need non-emergency medical transportation, especially for medically frail or elderly people in rural areas. Many don’t have a driver’s license or access to a vehicle. They’re geographically isolated, or they can’t access traditional public transportation for physical, mental, or developmental reasons.

A look at some telling statistics show a litany of challenges—along with business opportunities for solutions:

  • 32 states reported that there more than 59,000,000 total Medicaid NEMT trips  between 2015 to 2018, for issues related to behavioral health, dialysis, preventative care, and specialist care.
  • Our health care system suffers an extra $150 billion in expenses primarily due to a refusal of care, delays in care, and missed appointments.
  • A recent report by The Kaiser Commission on Medicaid and the Uninsured reveals that over 3.6 million patients elect to dismiss or delay necessary medical care each year because they don’t have transportation.
  • Medical transportation company legal structures

The legal structure of your non-emergency medical transportation business has far-reaching implications—both in respect to partnering with payment providers and resulting tax responsibilities.

NEMT businesses may be sole proprietorships, partnerships, or LLCs . If you want more help choosing a legal structure, an attorney can explain the advantages and disadvantages of each type.

While it’s possible to change your legal structure, it’s not ideal. When you’re putting together your business plan for your NEMT company, think through the possibilities around the evolution of the organization, and your expectations for growth. Your attention to detail will encourage confidence in potential investors and help to secure financing for the best start possible. Beyond legal structure considerations, use a business plan template to help you make sure that you’ve thought through every aspect of your business.  

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  • NEMT certification, licensing, and insurance requirements

The non-emergency medical transportation industry is still in its comparative infancy as a formal niche—both in respect to technological innovation and federal regulation.

While there are no formal guidelines for the NEMT industry as a whole, each state has its own set of operational rules and regulations that all companies are required to follow.

NEMT certification elements

NEMT operators aren’t currently held to the same education and training requirements as their counterparts in ambulance transportation. You’ll still want your staff to be trained in basic medical emergency medical care—CPR, defibrillator operation, vitals assessment, and other life-saving techniques.

As the industry develops, and the need for NEMT professionals continues to grow, certification courses will almost certainly become standard.

NEMT licensing elements

Vehicle licensing is another primary element of the non-emergency medical transportation industry.

Double check your requirements with your local bureau of motor vehicles, and make sure you understand any standards set for Medicaid transportation if you offer it, like:

  • Number of penalty points on a driving record
  • A certification of the driver’s health
  • A vehicle liability insurance policy
  • A criminal background check
  • Proof of negative random drug screenings

Auto and liability insurance elements

Because driving patients has inherent risks—traffic accidents or health-related events while en route to medical facilities—adequate insurance is another critical aspect of starting a NEMT business. While there are no national guidelines for insurance policy elements and dollar amounts, you’ll want to work with your provider to make sure you’re adequately covered.

In most cases, coverage is based on a two-part formula: coverage for the individual driver, and coverage for the company in general. Make sure you understand the risks and liabilities so that being underinsured doesn’t bankrupt your company.

  • ADA-compliant wheelchair-accessible vans and equipment

If you’re going to start a transport business, you’re going to need the right vehicle. You’re probably looking for a minivan, full-size van, or bus that meets the requirements of the Americans with Disabilities Act (ADA) and the ADA Standards for Accessible Design .

ADA compliance elements

Your vehicles will need to be ADA compliant if your business meets any of the following:

  • Private employers with 15 or more employees;
  • businesses operating for the benefit of the public; and,
  • all state and local government agencies.

Some ADA requirements include:

  • Lift door height: 56”-door opening height
  • Handicap lift: 30” x 40” wide clear platform
  • Wheelchair attachments: Able to withstand 2,500 of pressure per leg
  • Seat belt mechanism: 4-pt. tie downs with lap and shoulder belt
  • Interior lighting: one-foot candle of illumination

Be sure to think through the associated medical supplies you’ll need for your passengers—wheelchairs, gurneys, oxygen tanks, dialysis machines, for example. These extras will influence the size and floor plan of the vehicle you’ll need, and will no doubt affect your overall startup costs .

ADA-compliant vans

There are a few affordable makes and models of wheelchair accessible vans that are ADA-compliant—either right from the manufacturing line or after an accessibility conversion.

  • Ford Transit Wheelchair Transport Van:  This handicap wheelchair van comes ADA-compliant right out of the factory. It’s a full-size wheelchair van with plenty of headroom and multiple floor plan options.
  • Toyota Sienna Wheelchair Van:  This accessible vehicle is an ADA-compliant rear-entry wheelchair van that happens to be one of the more affordable mobility vehicles on the market.
  • Legend Side Entry Handicap Van Conversion:  Spacious side-entry accessibility using a powered ramp operated by remote control or door side control.
  • Service, staffing, payment, and marketing processes

On the front end, you need to be able to meet the needs of your customers—that means providing exceptional service with flexibility and consistency. That will require smart staffing decisions, and a commitment to ongoing training, especially as the industry grows.

On the back end, you’ll need to look at ways to control costs to increase your profitability.

From the start, think about:

  • The services you offer and the most efficient ways to deliver them
  • Hiring the right people to work with and for you
  • Appropriate payment options for your demographic
  • Your dynamic marketing strategy—or how you’ll find your clients

Selecting service offerings and billing

Whatever specific services you decide to offer, make sure to itemize them and communicate them clearly. You want your customers to know what they’re getting, and you want to make it as easy as possible to be transparent about billing.

Pricing your services

How you price your services will depend on a few different factors:

  • Geographic location
  • Economic conditions
  • Age and health condition of customers
  • The business’s ability to deliver services economically

Pricing techniques such as multi-service package rates, referral discount programs, and frequent customer rewards can drive additional business.

Hiring office staffing positions

Staffing an NEMT startup—outside of competent drivers—will require a mix of talented professionals with experience in customer service, accounting and finance, scheduling organization, and leadership.

As with most startups, your staff will probably need to perform multiple roles at first. You may not be able to hire your full, ideal staff right out of the gate. But even in the early days, it’s going to be important to have a solid training program for onboarding new hires.

  • Determining payment options

Medicaid will probably be a primary payer for services. Make sure your staff has a working knowledge of Medicaid’s detailed processes and billing guidelines. This will include ongoing training for yearly program changes.

Developing relationships with insurance providers will probably also be key. Each insurer most likely will follow their own set of operating guidelines—it’s an initial challenge that should become increasingly smoother from year to year.

  • Creating a marketing strategy

Once all elements of the NEMT startup are in place, it’s time to get the word out to potential customers, their family members, and their caregivers.

Money spent on a focused, multichannel marketing strategy is money well-spent. There should be a mix of traditional and digital advertising techniques within the strategic marketing plan—a method to ensure that the message reaches those online and off. Establishing a marketing ROI tracking strategy can help determine which channels deserve the larger investment of capital.

In addition to paid marketing practices, the NEMT startup can increase ROI by finding various unpaid—and sometimes earned—marketing opportunities .

These may include:

  • Partnering with non-competing businesses that serve the same customer base
  • Creating educational resources and hosting them on your website
  • Requesting write-ups in local newspapers and magazines
  • Establishing a referral program to drive word-of-mouth advertising

Start with a solid business plan . Make sure you’re properly licensed and insured, and that your vehicle is reliable and ADA compliant.

Now more than ever, it’s possible to develop a profitable NEMT business while helping individuals access the proper medical care they need to be healthy.

Content Author: Kelly Richardson

As a freelance marketing consultant, Kelly has designed and executed strategic marketing campaigns for over 250 thriving B2C, B2B, non-profit, and government clients—including Fortune 500s, mid-sized corporations, and burgeoning startups.

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Non-Emergency Medical Transportation Business Plan Template

Written by Dave Lavinsky

Non-Emergency Medical Transportation Business Plan

You’ve come to the right place to create your Non-Emergency Medical Transportation business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Non-Emergency Medical Transportation companies.

Below is a template to help you create each section of your Non-Emergency Medical Transportation business plan.

Executive Summary

Business overview.

Wheeler Medical Transport was formed one year ago to help patients travel to their non-emergency medical appointments. Many people with chronic or serious conditions do not have access to transportation or are unable to drive a car on their own. This makes it extremely difficult for them to go to doctor’s appointments or other important procedures. Our mission is to provide affordable transportation services so that everyone can easily access the medical care they need.

Our company provides transportation services for a variety of situations such as doctor’s appointments, hospital visits, mental health appointments, physical therapy appointments, and more. We serve patients that cannot travel to these appointments on their own, such as patients with cognitive impairments or patients who are elderly. We also help anyone who simply doesn’t have accessible transportation or who doesn’t feel comfortable driving in their condition. We also allow our clients to bring their caregivers or a friend or family member to accompany them.

Wheeler Medical Transport is founded and run by John Wheeler. John has worked in the medical industry for ten years as an administrative employee. Throughout his career, he noticed that many patients did not have transportation to attend all their required medical appointments. This inspired him to create a company that can help patients with this issue. His mission is to create a transportation company who’s focus in every aspect of the business is on personal attention and empathy.

Product Offering

Wheeler Medical Transport offers non-emergency medical transportation services in two ways. First, we arrange travel for “single transport” clients. These clients only need our service once, such as going home after a hospital visit or needing round-trip transport for an important procedure or operation. These arrangements can be easily made via our website or through a phone call to our customer service line.

The second type of non-emergency medical transportation offered by Wheeler Medical Transport is a “Client Care Package.” This includes a set number of transport services in packages of 5,10, or 20 round-trips. Clients opt for these packages when they regularly utilize our services. For example, a client who needs to visit a physical therapist on a bi-weekly basis would want to purchase a Client Care Package of 10 round-trips to facilitate a month of regular service. Because our Client Care Packages are discounted and bundled for our clients, costs overall are lower. Our services are set at a lower cost than all of our competitors when our Client Care Packages are used. Arrangements for a Client Care Package can be made via website or by phone call.

Customer Focus

Wheeler Medical Transport serves clients within a 20 mile radius of San Antonio, Texas. We primarily serve patients who need either one time or regular transportation to non-emergency medical appointments. Like any city, San Antonio has a large population, with many residents living with chronic health conditions. Not everyone has easy access to a vehicle or public transportation. Therefore, we will market our services to patients and their caregivers so we can help them get to their appointments.

Management Team

Wheeler Medical Transport has recently been formed as a S-corporation by John Wheeler. John worked on the administrative team of a local hospital and saw that many patients struggled to get to their appointments because they did not have transportation. John decided to start a business that can help patients without good transportation get to their appointments on time. He is joined by several other medical and non-medical professionals who are passionate about achieving this same goal.

In addition to his experience in the medical industry, John has a Bachelor’s degree in Business and a Master’s degree in Hospital Administration.

Success Factors

Wheeler Medical Transport will be able to achieve success by offering the following competitive advantages:

  • Patient-oriented service: Wheeler Medical Transport will have a staff that prioritizes the needs of the patients and focuses on building long-term relationships based on support and empathy.
  • Management: John Wheeler has a genuine passion to help the community. Because of his previous experience and reputation in the medical community, he has the knowledge, experience, and connections that will help the company succeed.
  • Quality Care: Patients who utilize our transportation services will experience the highest quality care in the industry. From the moment they book an appointment, they will receive significant personal attention to ensure all of their transportation needs are met.
  • Pricing: Wheeler Medical Transport’s pricing will be more affordable than its competition. Patients can expect quick and quality transportation for less than what other companies charge.

Financial Highlights

Wheeler Medical Transport is currently seeking $550,000 to launch broad initiatives of the company plan, employ additional personnel, and add service transport vans. The capital will be used for funding capital expenditures, salaries, marketing expenses, and working capital.

Specifically, these funds will be used as follows:

  • Office design and build out: $100,000
  • Service transport vans: $150,000 to purchase three new, fully-equipped non-emergency medical transportation vans
  • Equipment, supplies, and inventory: $50,000
  • Three months of overhead expenses (payroll, rent, utilities): $150,000
  • Marketing costs: $50,000
  • Working capital: $50,000

The following graph below outlines the pro forma financial projections for Wheeler Medical Transport.

Wheeler Medical Transport Financial Projections

Company Overview

Who is wheeler medical transport, wheeler medical transport’s history.

Wheeler Medical Transport has recently been formed as an S-corporation. Since incorporation, the Company has achieved the following milestones:

  • Found an office location and signed a Letter of Intent to lease it
  • Developed the company’s name, logo, and website
  • Determined equipment and inventory requirements
  • Began recruiting key employees with experience in the restaurant industry

Wheeler Medical Transport’s Services

Industry analysis.

The non-emergency medical transportation industry has enjoyed strong growth during the past five years. The primary reasons for growth include an aging population that is increasing with “baby boomer” seniors who often require such care, and the recent pandemic, which drove, and continues to drive, non-emergency medical transportation services to the breaking point of capacity.

According to Global Newswire, the current non-emergency medical transportation market was valued at $8,658 million in 2021 and is expected to grow to $15,580 million by 2028, growing at a CAGR of 9%. These figures suggest the two factors for growth discussed in this analysis will continue: an aging population that is increasing in size, and variants of the pandemic that will continue for several years.

The non-emergency medical transportation sector continues to evolve with innovations within the transport industry and new configurations of service vans to accommodate the needs of clients. These improvements drive more passengers to engage the services of non-emergency medical transportation companies, as the comfort and needs of clients increase.

Customer Analysis

Demographic profile of target market.

Wheeler Medical Transport currently serves clients within a 20-mile radius of San Antonio, Texas. While the majority of clients live within a 20-minute drive to medical services in the city, many clients live in rural areas that require lengthy transportation schedules and complex driving directions. The drivers within Wheeler Medical Transport are provided with a 3-week orientation in client-service relationships prior to driving, which helps facilitate an understanding of the needs of our clients.

Regardless of the transportation process itself, the demographics of clients are fairly defined as: elderly patients, patients with non-emergency medical or cognitive needs, non-drivers, and patients who are uncomfortable driving on their own.

The demographics of San Antonio are as follows:

TotalPercent
    Total population1,680,988100%
        Male838,67549.9%
        Female842,31350.1%
        20 to 24 years114,8726.8%
        25 to 34 years273,58816.3%
        35 to 44 years235,94614.0%
        45 to 54 years210,25612.5%
        55 to 59 years105,0576.2%
        60 to 64 years87,4845.2%
        65 to 74 years116,8787.0%
        75 to 84 years52,5243.1%

Customer Segmentation

Wheeler Medical Transport will primarily target the following customer profiles:

  • Patients with chronic conditions
  • Residents 55+

Competitive Analysis

Direct and indirect competitors.

Wheeler Medical Transport will face competition from other companies with similar business profiles. A description of each competitor company is below.

Transport & Care Services

This company offers non-emergency medical transportation within the same 20-mile radius as Wheeler Medical Transport. Rural pick up and return trips are offered, albeit with limited daytime service only. Clients are quoted a single round-trip transportation fee, whether the trip is one-way or round-trip. Discount packages are not offered.

Care4You Transportation

Care4You Transportation has the singular focus of hospital pick-up or return service. As such, focused advertising is directed to hospital patients or other in-patient/out-patient customer segments. Rural customer service is not offered, although stretcher/gurney services to in-city destinations are available. Packages are not offered for customers who require regular service or return trips to the hospital.

LimoMedical

LimoMedical is a luxurious limousine service that offers non-emergency medical transportation within the same 20-mile radius as Wheeler Medical Transport. While the same geographics apply to both companies, the services offered are different: LimoMedical does not offer any seating for wheelchair-bound or lie-down capabilities for stretcher-bound clients, as does Wheeler Medical Transport. The company offers packages for multiple party trips or uses; including bachelor party bus usage and other event-related travel packages.

Competitive Advantage

Wheeler Medical Transport will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Wheeler Medical Transport will offer the unique value proposition to its clientele:

  • The focused attention on all members of the client’s team: support personnel, family members, administrative staff and transport team members.
  • A dual-option system of offerings: one-time service or packaged services for regular users.
  • Commitment to care and service before, during and after transport services.

Promotions Strategy

The promotions strategy for Wheeler Medical Transport is as follows:

Social Media

Although many elderly clients forego any social media contact, the families of primary clients check social media frequently. The Marketing Manager will frequently post videos, comments, pictures and other encouraging notes.

The current website of Wheeler Medical Transport contains transport information, pricing structures and directions to order transport. Additional elements will include transporting clients on stretchers, transporting those with cognitive decline, and other special needs. Videos of special services will be offered to reassure those clients who are initially uncomfortable or concerned about movement and transfer points.

Partnerships with Local Businesses

Primary clients will be located through the personnel at medical offices, hospitals, and through social workers within the 20-mile radius of the company. Partnering with each to provide non-emergency medical transportation will require special promotions and regular contact with each entity.

Wheeler Medical Transport will promote services via a strong brand message on billboards positioned directly across from local hospitals served by our company. Simple, clear messages will be extended to the hospital population as a result.

The pricing strategy for Wheeler Medical Transport contains two methods to serve clients:

  • “Single trip” (one-way or round-trip) pricing is offered for one-time customers.
  • “Customer Care Packages” are offered to primary clients who are or expect to use regular services of Wheeler Medical Transport. Trips are bundled to create discounts for primary clients and a steady stream-of-revenue for Wheeler Medical Transport.

Operations Plan

The following will be the operations plan for Wheeler Medical Transport.

Operation Functions:

  • John Wheeler will act as the Founder and CEO of Wheeler Medical Transport. He will oversee the general operations and executive aspects of the business. John has spent the past year hiring the following personnel:
  • John is joined by Sara Lopez, who will be the Marketing Manager for the company. She will be in charge of all of the company’s marketing and advertising efforts.
  • John is also joined by his son George Wheeler who will be the first driver for the company. He has previously driven for Uber and Lyft, and has considerable experience driving clients to medical appointments.
  • John will hire an Administrative Assistant to help with the general administrative duties.
  • John will also hire several customer service personnel and drivers to book appointments, provide customer service, and drive patients to their appointments.

Milestones:

Wheeler Medical Transport will have the following milestones complete in the next six months.

  • 02/202X Finalize lease agreement
  • 03/202X Design and build out Wheeler Medical Transport
  • 04/202X Hire and train initial staff
  • 05/202X Kickoff of promotional campaign
  • 06/202X Launch Wheeler Medical Transport
  • 07/202X Reach break-even

Financial Plan

Key revenue & costs.

The key revenues for Wheeler Medical Transport will come from the fees charged for our transportation services.

The key cost drivers will include van purchases and maintenance expenses, salaries, the lease, and ongoing marketing costs.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

  • Annual lease: $100,000
  • Average annual van maintenance fees: $20,000

Financial Projections

Income statement.

FY 1FY 2FY 3FY 4FY 5
Revenues
Total Revenues$360,000$793,728$875,006$964,606$1,063,382
Expenses & Costs
Cost of goods sold$64,800$142,871$157,501$173,629$191,409
Lease$50,000$51,250$52,531$53,845$55,191
Marketing$10,000$8,000$8,000$8,000$8,000
Salaries$157,015$214,030$235,968$247,766$260,155
Initial expenditure$10,000$0$0$0$0
Total Expenses & Costs$291,815$416,151$454,000$483,240$514,754
EBITDA$68,185 $377,577 $421,005 $481,366 $548,628
Depreciation$27,160$27,160 $27,160 $27,160 $27,160
EBIT$41,025 $350,417 $393,845$454,206$521,468
Interest$23,462$20,529 $17,596 $14,664 $11,731
PRETAX INCOME$17,563 $329,888 $376,249 $439,543 $509,737
Net Operating Loss$0$0$0$0$0
Use of Net Operating Loss$0$0$0$0$0
Taxable Income$17,563$329,888$376,249$439,543$509,737
Income Tax Expense$6,147$115,461$131,687$153,840$178,408
NET INCOME$11,416 $214,427 $244,562 $285,703 $331,329

Balance Sheet

FY 1FY 2FY 3FY 4FY 5
ASSETS
Cash$154,257$348,760$573,195$838,550$1,149,286
Accounts receivable$0$0$0$0$0
Inventory$30,000$33,072$36,459$40,192$44,308
Total Current Assets$184,257$381,832$609,654$878,742$1,193,594
Fixed assets$180,950$180,950$180,950$180,950$180,950
Depreciation$27,160$54,320$81,480$108,640 $135,800
Net fixed assets$153,790 $126,630 $99,470 $72,310 $45,150
TOTAL ASSETS$338,047$508,462$709,124$951,052$1,238,744
LIABILITIES & EQUITY
Debt$315,831$270,713$225,594$180,475 $135,356
Accounts payable$10,800$11,906$13,125$14,469 $15,951
Total Liability$326,631 $282,618 $238,719 $194,944 $151,307
Share Capital$0$0$0$0$0
Retained earnings$11,416 $225,843 $470,405 $756,108$1,087,437
Total Equity$11,416$225,843$470,405$756,108$1,087,437
TOTAL LIABILITIES & EQUITY$338,047$508,462$709,124$951,052$1,238,744

Cash Flow Statement

FY 1FY 2FY 3FY 4FY 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)$11,416 $214,427 $244,562 $285,703$331,329
Change in working capital($19,200)($1,966)($2,167)($2,389)($2,634)
Depreciation$27,160 $27,160 $27,160 $27,160 $27,160
Net Cash Flow from Operations$19,376 $239,621 $269,554 $310,473 $355,855
CASH FLOW FROM INVESTMENTS
Investment($180,950)$0$0$0$0
Net Cash Flow from Investments($180,950)$0$0$0$0
CASH FLOW FROM FINANCING
Cash from equity$0$0$0$0$0
Cash from debt$315,831 ($45,119)($45,119)($45,119)($45,119)
Net Cash Flow from Financing$315,831 ($45,119)($45,119)($45,119)($45,119)
Net Cash Flow$154,257$194,502 $224,436 $265,355$310,736
Cash at Beginning of Period$0$154,257$348,760$573,195$838,550
Cash at End of Period$154,257$348,760$573,195$838,550$1,149,286

Non-Emergency Medical Transportation Business Plan FAQs

What is a non-emergency medical transportation business plan.

A non-emergency medical transportation business plan is a plan to start and/or grow your non-emergency medical transportation business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Non-emergency Medical Transportation business plan using our Non-emergency Medical Transportation Business Plan Template here .

What are the Main Types of Non-emergency Medical Transportation Businesses?

There are a number of different kinds of non-emergency medical transportation businesses , some examples include: Wheelchair transport, Basic life support, Advanced life support, and Bariatric Transport.

How Do You Get Funding for Your Non-emergency Medical Transportation Business Plan?

Non-emergency Medical Transportation businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Non-emergency Medical Transportation Business?

Starting a non-emergency medical transportation business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Non-emergency Medical Transportation Business Plan - The first step in starting a business is to create a detailed non-emergency medical transportation business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your non-emergency medical transportation business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your non-emergency medical transportation business is in compliance with local laws.

3. Register Your Non-emergency Medical Transportation Business - Once you have chosen a legal structure, the next step is to register your non-emergency medical transportation business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your non-emergency medical transportation business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Non-emergency Medical Transportation Equipment & Supplies - In order to start your non-emergency medical transportation business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your non-emergency medical transportation business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

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Medical Transport Business Plan

Executive summary image

The non-emergency medical transport industry promises unprecedented growth and profitability. The ever-increasing demand and an extensive marketplace make it a lucrative business venture to undertake.

Looking for medical transport business plan? A business plan will help you raise funds and scale your business toward exponential growth.

Need help writing a business plan for your medical transport business? You’re at the right place. Our medical transport business plan template will help you get started.

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  • Fill in the blanks – Outline
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How to Write A Medical Transport Business Plan?

Writing a medical transport business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

  • Market Opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
  • Marketing & Sales Strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
  • Financial Highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
  • Call to Action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Describe what kind of medical transport company you run and the name of it. You may specialize in one of the following medical transport businesses:

  • Wheelchair transport
  • Basic life support
  • Advanced life support
  • Stretcher transport
  • Specialty transport
  • Describe the legal structure of your medical transport company, whether it is a sole proprietorship, LLC, partnership, or others.
  • Explain where your business is located and why you selected the place.
  • Owners: List the names of your medical transport company’s founders or owners. Describe what shares they own and their responsibilities for efficiently managing the business.
  • Mission Statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
  • Future Goals: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services.

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

  • Competitive Analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your medical transport services from them. Point out how you have a competitive edge in the market.
  • Regulatory Environment: List regulations and licensing requirements that may affect your medical transport company, such as business registration, vehicle licensing and driver compliance, non-discrimination compliance, transportation accessibility regulations, insurance, environmental regulations, state and federal regulations, etc.

Here are a few tips for writing the market analysis section of your non-emergency medical transport business plan:

  • Conduct market research, industry reports, and surveys to gather data.
  • Provide specific and detailed information whenever possible.
  • Illustrate your points with charts and graphs.
  • Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

  • Transportation services: Mention the medical transport services your business will offer. This will include door-to-door services, wheelchair accessibility, stretcher transport, ambulatory transport, etc.

Quality measures: This section should explain how you maintain quality standards and consistently provide the highest quality service.

  • Additional Services: Mention if your medical transport company offers any additional services. You may include services like insurance coverage, luggage assistance, medical escort, accompaniment of vulnerable individuals, language, etc.

In short, this section of your medical transport plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

  • Pricing Strategy: Describe your pricing strategy—how you plan to price your medical transport services and stay competitive in the local market. You can mention any introductory offer you plan on offering to attract new customers to your medical transport service.
  • Marketing Strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, Google ads, brochures, email marketing, content marketing, and print marketing.
  • Sales Strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include partnering with healthcare providers, nursing homes, rehab centers, and social service agencies, offering referral programs, etc.
  • Customer Retention: Describe your customer retention strategies and how you plan to execute them. For instance, introducing loyalty programs, exceptional customer service, membership discounts, personalized service, etc.

Overall, this section of your medical transport business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your medical transport business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

  • Staffing & Training: Mention your medical transport business’s staffing requirements, including the number of drivers, caregivers, attendants, BD, and marketing staff needed. Include their qualifications, the training required, and the duties they will perform.
  • Operational Process: Outline the processes and procedures you will use to run your medical transport business. Your operational processes may include answering calls, scheduling drivers, billing patients, and training for quality services.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your medical transport business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

  • Founders/CEO: Mention the founders and CEO of your medical transport company, and describe their roles and responsibilities in successfully running the business.
  • Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
  • Compensation Plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.

This section should describe the key personnel for your medical transport services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

  • Profit & loss statement: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement . Make sure to include your business’s expected net profit or loss.
  • Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
  • Balance Sheet: Create a projected balance sheet documenting your medical transport business’s assets, liabilities, and equity.

This exercise will help you understand how much revenue you need to generate to sustain or be profitable.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

  • Add a table of contents for the appendix section to help readers easily find specific information or sections.
  • In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
  • Provide data derived from market research, including stats about the medical transport industry, user demographics, and industry trends.
  • Include any legal documents such as permits, licenses, and contracts.
  • Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your medical transport business plan should only include relevant and important information supporting your plan’s main content.

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This sample medical transport business plan will provide an idea for writing a successful medical transport plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our medical transport business plan pdf .

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Frequently Asked Questions

Why do you need a medical transport business plan.

A business plan is an essential tool for anyone looking to start or run a successful medical transport business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your medical transport company.

How to get funding for your medical transport business?

There are several ways to get funding for your medical transport business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

  • Bank loan – You may apply for a loan in government or private banks.
  • Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
  • Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
  • Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your medical transport business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your medical transport business plan and outline your vision as you have in your mind.

What is the easiest way to write your medical transport business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any medical transport business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

How detailed should the financial projections be in my medical transport business plan?

The level of detail of the financial projections of your medical transport business may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a complete view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

Can a good medical transport business plan help me secure funding?

Indeed. A well-crafted medical transport business plan will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.

So, if you have a profitable and investable business, a comprehensive business plan can certainly help you secure your business funding.

About the Author

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Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Non Emergency Medical Transportation Business Plan Template

Written by Dave Lavinsky

non emergency medical transportation business plan

Non Emergency Medical Transportation Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their non-emergency medical transportation companies.

If you’re unfamiliar with creating a non-emergency medical transportation business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a non-emergency medical transportation business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Non Emergency Medical Transportation Business Plan?

A business plan provides a snapshot of your NEMT business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a NEMT Business

If you’re looking to start a non-emergency medical transportation business or grow your existing non-emergency medical transportation company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your non-emergency medical transportation business to improve your chances of success. Your NEMT business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for NEMT Businesses

With regards to funding, the main sources of funding for a non-emergency medical transportation business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for non-emergency medical transportation companies.

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How to write a business plan for a non emergency medical transport business.

If you want to start a non emergency medical transportation business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of non-emergency medical transportation business you are running and the status. For example, are you a startup, do you have a non-emergency medical transportation business that you would like to grow, or are you operating a chain of non-emergency medical transportation businesses?

Next, provide an overview of each of the subsequent sections of your plan.

  • Give a brief overview of the non emergency medical transportation industry.
  • Discuss the type of business you are operating.
  • Detail your direct competitors. Give an overview of your target customers.
  • Provide a snapshot of your marketing strategy. Identify the key members of your team.
  • Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of non-emergency medical transportation business you are operating.

For example, you might specialize in one of the following types of non-emergency medical transportation businesses:

  • Wheelchair transport: this type of business uses wheelchair accessible vehicles to transport patients to or from doctor’s appointments.
  • Basic life support: this type of business uses vehicles equipped with personnel to assist with monitoring and oxygen administration during transport.
  • Advanced life support: this type of business uses vehicles equipped with specialized medical equipment and is usually staffed with a paramedic or EMT.
  • Bariatric Transport: this type of business uses vehicles equipped with wide cots for patients weighing over 300 pounds or otherwise in need of a broad stretcher.

In addition to explaining the type of non emergency medical transportation business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include the number of patients served, the number of transports performed, reaching $X amount in revenue, etc.
  • Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the NEMT industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the non-emergency medical transportation industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your business plan:

  • How big is the non emergency medical transportation industry (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential target market for your non-emergency medical transportation business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your non-emergency medical transportation business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of non-emergency medical transportation business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other non-emergency medical transportation businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other types of transport services, patients obtaining transport from family or friends, or patients using mobile healthcare options rather than physically going to an appointment. These types of competition should be referenced as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

  • What types of customers do they serve?
  • What type of non-emergency medical transportation business are they?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you make it easier for your customers to acquire your services?
  • Will you offer products or services that your competition doesn’t?
  • Will you provide better customer service?
  • Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a non-emergency medical transportation business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of non-emergency medical transportation company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide wheelchair transport, bariatric transport, life support, or general transportation services for medical appointments?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your non-emergency medical transportation company. Document where your company is situated and mention how the site will impact your success. For example, is your NEMT business located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

  • Advertise in local papers, radio stations and/or magazines
  • Reach out to websites
  • Distribute flyers
  • Engage in email marketing
  • Advertise on social media platforms
  • Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your non-emergency medical transportation business, including answering calls, scheduling drivers, billing patients, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth patient, or when you hope to reach $X in revenue. It could also be when you expect to expand your non-emergency medical transportation business to a new city.  

Management Team

To demonstrate your non-emergency medical transportation business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing non-emergency medical transportation businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a non-emergency medical transportation business.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.  

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you transport 5 patients per day, per van? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.  

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your non-emergency medical transportation business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.  

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a non emergency medical transport business:

  • Cost of equipment and office supplies
  • Payroll or salaries paid to staff
  • Business insurance
  • Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of testimonials from satisfied customers.  

Writing a business plan for your NEMT business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the non-emergency medical transportation industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful non-emergency medical transportation business.

Don’t you wish there was a faster, easier way to finish your Non Emergency Medical Transportation business plan?

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How To Write a Winning Medical Transportation Business Plan + Template

Business Plan-DB

Creating a business plan is essential for any business, but it can be especially helpful for medical transportation businesses who want to improve their strategy or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you will accomplish it. To create an effective business plan, you must first understand the components essential to its success.

This article provides an overview of the key elements that every medical transportation business owner should include in their business plan.

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What is a Medical Transportation Business Plan?

A medical transportation business plan is a formal written document describing your company’s business strategy and feasibility. It documents the reasons you will succeed, your areas of competitive advantage, and includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Medical Transportation Business Plan?

A medical transportation business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Medical Transportation Business Plan

The following are the key components of a successful medical transportation business plan:

Executive Summary

The executive summary of a medical transportation business plan is a one- to two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

  • Start with a one-line description of your medical transportation company
  • Provide a summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your medical transportation business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your medical transportation firm, mention this.

Industry Analysis

The industry or market analysis is an important component of a medical transportation business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

  • What part of the medical transportation industry are you targeting?
  • How big is the market?
  • What trends are happening in the industry right now (and if applicable, how do these trends support your company’s success)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a medical transportation business’ customers may include:

  • Patients who need to be transported to and from medical appointments
  • Hospitals or other medical facilities that need to transport patients

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or medical transportation services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will differ from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation or advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your medical transportation business may have:

  • Extensive industry experience
  • Proven business model
  • Strong management team
  • State-of-the-art technology
  • Customer focus
  • Strong marketing and sales efforts
  • Scalability

Marketing Plan

This part of the business plan is where you determine and document your marketing plan . Your plan should be clearly laid out, including the following 4 Ps.

  • Product/Service : Detail your product/service offerings here. Document their features and benefits.
  • Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
  • Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
  • Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or you may promote your medical transportation business via a combination of these marketing channels.

Operations Plan

This part of your medical transportation business plan should include the following information:

  • How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
  • What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a medical transportation business include reaching $X in sales. Other examples include hiring a certain number of employees or adding new services to your offerings.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific medical transportation industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

  • Revenue : how much revenue you generate.
  • Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
  • Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Medical Transportation Company

Revenues $ 336,090 $ 450,940 $ 605,000 $ 811,730 $ 1,089,100
$ 336,090 $ 450,940 $ 605,000 $ 811,730 $ 1,089,100
Direct Cost
Direct Costs $ 67,210 $ 90,190 $ 121,000 $ 162,340 $ 217,820
$ 67,210 $ 90,190 $ 121,000 $ 162,340 $ 217,820
$ 268,880 $ 360,750 $ 484,000 $ 649,390 $ 871,280
Salaries $ 96,000 $ 99,840 $ 105,371 $ 110,639 $ 116,171
Marketing Expenses $ 61,200 $ 64,400 $ 67,600 $ 71,000 $ 74,600
Rent/Utility Expenses $ 36,400 $ 37,500 $ 38,700 $ 39,800 $ 41,000
Other Expenses $ 9,200 $ 9,200 $ 9,200 $ 9,400 $ 9,500
$ 202,800 $ 210,940 $ 220,871 $ 230,839 $ 241,271
EBITDA $ 66,080 $ 149,810 $ 263,129 $ 418,551 $ 630,009
Depreciation $ 5,200 $ 5,200 $ 5,200 $ 5,200 $ 4,200
EBIT $ 60,880 $ 144,610 $ 257,929 $ 413,351 $ 625,809
Interest Expense $ 7,600 $ 7,600 $ 7,600 $ 7,600 $ 7,600
$ 53,280 $ 137,010 $ 250,329 $ 405,751 $ 618,209
Taxable Income $ 53,280 $ 137,010 $ 250,329 $ 405,751 $ 618,209
Income Tax Expense $ 18,700 $ 47,900 $ 87,600 $ 142,000 $ 216,400
$ 34,580 $ 89,110 $ 162,729 $ 263,751 $ 401,809
10% 20% 27% 32% 37%

Balance Sheet

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

  • Assets : All of the things you own (including cash).
  • Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
  • Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Medical Transportation Company

Cash $ 105,342 $ 188,252 $ 340,881 $ 597,431 $ 869,278
Other Current Assets $ 41,600 $ 55,800 $ 74,800 $ 90,200 $ 121,000
Total Current Assets $ 146,942 $ 244,052 $ 415,681 $ 687,631 $ 990,278
Fixed Assets $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000
Accum Depreciation $ 5,200 $ 10,400 $ 15,600 $ 20,800 $ 25,000
Net fixed assets $ 19,800 $ 14,600 $ 9,400 $ 4,200 $ 0
$ 166,742 $ 258,652 $ 425,081 $ 691,831 $ 990,278
Current Liabilities $ 23,300 $ 26,100 $ 29,800 $ 32,800 $ 38,300
Debt outstanding $ 108,862 $ 108,862 $ 108,862 $ 108,862 $ 0
$ 132,162 $ 134,962 $ 138,662 $ 141,662 $ 38,300
Share Capital $ 0 $ 0 $ 0 $ 0 $ 0
Retained earnings $ 34,580 $ 123,690 $ 286,419 $ 550,170 $ 951,978
$ 34,580 $ 123,690 $ 286,419 $ 550,170 $ 951,978
$ 166,742 $ 258,652 $ 425,081 $ 691,831 $ 990,278

Cash Flow Statement

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

  • Cash Flow From Operations
  • Cash Flow From Investments
  • Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup medical transportation business.

Sample Cash Flow Statement for a Startup Medical Transportation Company

Net Income (Loss) $ 34,580 $ 89,110 $ 162,729 $ 263,751 $ 401,809
Change in Working Capital $ (18,300) $ (11,400) $ (15,300) $ (12,400) $ (25,300)
Plus Depreciation $ 5,200 $ 5,200 $ 5,200 $ 5,200 $ 4,200
Net Cash Flow from Operations $ 21,480 $ 82,910 $ 152,629 $ 256,551 $ 380,709
Fixed Assets $ (25,000) $ 0 $ 0 $ 0 $ 0
Net Cash Flow from Investments $ (25,000) $ 0 $ 0 $ 0 $ 0
Cash from Equity $ 0 $ 0 $ 0 $ 0 $ 0
Cash from Debt financing $ 108,862 $ 0 $ 0 $ 0 $ (108,862)
Net Cash Flow from Financing $ 108,862 $ 0 $ 0 $ 0 $ (108,862)
Net Cash Flow $ 105,342 $ 82,910 $ 152,629 $ 256,551 $ 271,847
Cash at Beginning of Period $ 0 $ 105,342 $ 188,252 $ 340,881 $ 597,431
Cash at End of Period $ 105,342 $ 188,252 $ 340,881 $ 597,431 $ 869,278

You will also want to include an appendix section which will include:

  • Your complete financial projections
  • A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
  • Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your medical transportation company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

A well-written medical transportation business plan is an essential tool for any new business owner.  

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How to Start a Medical Transportation Business? (Guide with Cost Estimation)

  • By Rakesh Patel
  • Last Updated: April 30, 2024

How to start a medical transportation business (NEMT business)

  • Get the equipment, insurance, and cars required to offer dependable transportation services while adhering to all applicable safety and health regulations.
  • Identify the unmet needs and pain areas of the target clients, such as seniors, people with disabilities, or patients with chronic ailments.
  • To earn recurring revenue and referrals, form agreements with healthcare providers like hospitals, clinics, or nursing homes and give them specialized and dependable transportation options like non-emergency medical transportation, patient transfers, or medical courier services.
  • Recruit and educate a team of skilled and compassionate drivers who have a strong focus on patient care, excellent communication abilities, and medical expertise.

Medical transportation businesses are often highly lucrative, primarily if they focus on serving the elderly. 

The elderly population is one of the fastest-growing groups in America, and they are more likely than younger people to require medical transportation services. 

The U.S. Healthcare Transportation Services Market is projected to achieve a CAGR of around 9% by 2022-2028 , reaching USD 24,137.6 million by the end of the forecast period.

There is an ever-increasing demand for these services, making them more profitable over time and more stable than other types of businesses when the economy fluctuates. If you’re aspiring to get into the medical transportation business and wondering how to start a medical transportation business , this article will guide you in getting started with your business.

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Table of Content

  • What Does a Medical Transportation Business Do?

How to Start a Medical Transportation Business

Pros and cons of starting a medical transportation business, how much does it cost to start a nemt business, how much does an nemt business make, how to become an nemt provider.

  • Perform Medical Transportation Services Using Best Routes from Upper

What Does a Medical Transportation Business Do? 

A medical transportation business provides transportation to people who need it, such as seniors and specially-abled people.

The main goal of a medical transportation business is to provide safe, reliable, and comfortable transportation to people who may not be able to drive themselves or do not have access to public transportation.

A medical transportation business can be an excellent opportunity for someone who wants to start their own medical transport business but has limited funds, as it doesn’t require office space or extensive equipment.

To start a medical transportation business, follow these steps:

Step-1: Choose the right location

Step-2: Register your business

Step-3: Apply for licenses and permits

Step-4: Invest in the right equipment

Step-5: Hire a team

Step-6: Market your service offerings after thorough research

Step-7: Provide top-notch customer service

1. Choose the right location

When starting a medical transportation business, you must choose the correct location. The area should be accessible and easy to find. It should also offer parking spaces for your vehicles and a place where patients can wait comfortably.

In addition, it should have good public transport connections so patients can get there quickly. Go for a venue that is near hospitals or clinics. It will allow you to attract more customers since many people will already know where to find your business.

For example, if you provide home health care and offer transportation services for people who need help getting from their homes to doctor’s appointments or nursing homes, you’ll want to be close enough to your clients that they can quickly get there. 

But if you are a company that provides transportation for patients, being closer to the hospital may be more significant.

2. Register your business

There are several business entities, each with advantages and disadvantages. Medical transportation businesses must select a (legal status) business structure that will shape tax obligations, personal liability, and business registration requirements. 

Here are the main options:

  • Sole proprietorship : This is the most accessible type of business to start and maintain. You’re personally liable for any debts or legal issues that arise from your company.
  • Partnership: This is similar to a sole proprietorship, in which no annual fee or ongoing paperwork requirements exist. However, partners are personally liable for all debts or lawsuits against their company. 
  • Corporation: This requires an initial registration fee and ongoing paperwork requirements. It also offers limited liability protection and tax advantages over other entities because profits can be passed on to shareholders. 
  • Limited Liability Company (LLC) : LLCs provide some protection from personal liability while offering flexibility regarding how much tax you’ll pay on profits.

3. Apply for licenses and permits

Starting a medical transportation business is a great way to make money and help people. But before you can get started, you need to meet all the legal requirements.

In most states, you must get a license or permit from your state and county governments. Once you have those, you must obtain a federal license or permit and register with OSHA. You’ll also need a valid driver’s license to operate motor vehicles. 

Getting all these licenses can be time-consuming and expensive, but it’s worth considering the amount of money you’ll make when your business is up and running.

4. Invest in the right equipment

The medical transportation business is a daunting task in our society. It helps potential clients who need treatment or medical facilities move from one place to another.

Invest in the right equipment for medical transportation business

Medical transportation businesses use various equipment, including:

  • Ambulances and other vehicles equipped with medical equipment, such as defibrillators, oxygen tanks, and stretchers.
  • Medical equipment, including wheelchairs and walkers.
  • Medical supplies like bandages, gauze, and gloves.
  • Medical transportation businesses also use proper vehicles, including wheelchair-accessible vans and minivans.

5. Hire a team

If you’re looking to build a successful medical transportation company, you’ll need to hire the best and most experienced workers you can find.

As your NEMT business grows , so will the number of patients and contracts you accept. To ensure that your patients get the quality of service they expect from your company, it is essential to hire experienced drivers and office managers who will keep things running smoothly.

6. Market your service offerings after thorough research

When it comes to medical transportation services, you need to know what kind of people are likely to use them and what problems they’re looking for solutions for. 

Once you’ve identified those clients and figured out their problems, you can figure out how to talk about your business in a way that speaks directly to them and addresses their needs so you can get more medical transportation contracts .

For example, if you’re marketing medical transportation services for senior clients with disabilities, you might talk about how your drivers are specially trained in handling wheelchairs and walkers.

How they’ll help seniors with dementia remember where they’re going so they don’t get confused by the route. 

Or maybe it’s more vital for them that all of their vehicles are wheelchair accessible so that people with mobility issues can get around without trouble.

7. Provide top-notch customer service

To provide good customer service for a medical transportation business, you must understand what your potential customers are looking for.

You should be able to anticipate their needs and take steps to meet those needs immediately. If an issue arises, you should be able to handle it in a way that keeps your customers happy and engaged.

Get Efficient Routes for Medical Transportation

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Non-emergency medical transportation (NEMT business) is an excellent option and a profitable business for those with an entrepreneurial spirit who want to make a difference in their community.

Following are some pros and cons of starting a (NEMT business) non-emergency medical transportation business:

  • There are many different types of medical transportation services, so you can choose to specialize and operate in one area or do it all
  • You get to meet new customers every day and have a direct impact on their lives
  • You can make a lot of money. The demand for medical transport is high, and the market is growing
  • Being able to work flexible hours
  • It takes time to build your client base and figure out how to run things smoothly
  • You need to work well with people of all ages and backgrounds because they can be very different from each other
  • It takes a lot of work to start this kind of company; it requires a lot of training, licensing, and money
  • You will need to invest in expensive equipment for the business, including a vehicle and any necessary safety equipment

Starting a NEMT (non-emergency medical transportation) business costs approximately between $30,000 and $100,000 or more. The total investment required can vary significantly based on the following expenses:

  • 1. Vehicles: The most significant cost is the vehicle. You’ll need reliable, comfortable, and accessible vehicles, especially if you plan to transport elderly or disabled clients. The price of a vehicle can range from $20,000 to $50,000, depending on whether you buy a new or used one. The type of vehicle you choose also affects the cost.
  • Insurance: Insurance is crucial for protecting your business and your clients. The cost of insurance will depend on factors like the number of vehicles, the types of vehicles, and your location. Expect to pay several thousand dollars per year for insurance on a vehicle.
  • Licenses and permits: You’ll need to obtain the necessary licenses and permits to operate legally. These costs can vary greatly depending on your location. Research your local and state requirements. This could cost anywhere from a few hundred to a few thousand dollars.
  • Marketing and advertising: Getting the word out about your business is essential. Marketing and advertising costs can vary depending on how aggressively you market your business. This includes costs for creating a website, business cards, flyers, and online advertising.
  • Office space and utilities: If you decide to rent office space, this will be an additional cost. However, starting from the home office can significantly reduce this cost.
  • Employee salaries: If you plan to hire drivers or office staff, you’ll need to factor in their salaries. The cost will depend on how many employees you have and the local wage rates.
  • Fuel and maintenance: Running vehicles means spending money on fuel and regular maintenance. These costs will vary depending on how much you use the vehicles and the current fuel price.
  • Miscellaneous expenses: Don’t forget to account for miscellaneous expenses like office supplies, phone bills, and software for scheduling and managing your business.

On average, NEMT business profits can range between $40,000 and $60,000 annually .

However, several factors influence NEMT’s business profits. Efficient route planning, operational excellence, and adherence to regulatory standards contribute to cost savings, which positively impact the bottom line.

Additionally, forming strategic partnerships with healthcare providers can lead to a steady flow of clients, enhancing overall profitability.

To become a NEMT (Non-Emergency Medical Transportation) provider:

  • Understand local regulations for NEMT services
  • Develop a business plan outlining services and financial projections
  • Choose a legal structure, register your business, and obtain the necessary licenses
  • Obtain suitable, compliant vehicles for medical transportation
  • Secure liability insurance and coverage for your vehicles
  • Train drivers on patient care, safety, and specific medical transportation requirements
  • Establish partnerships with healthcare providers and clinics
  • Develop a marketing strategy, including online presence and networking within the healthcare community
  • Adhere to health and safety standards, implementing cleanliness protocols
  • Set up electronic record-keeping systems for appointments, schedules, and billing
  • Prioritize patient care for a comfortable and safe transportation experience

Perform Medical Transportation Services Using the Best Routes from Upper

Every second counts when you’re moving, and every penny counts when you have to travel. This is especially true in a critical business like non-emergency medical transportation (NEMT Business). 

Therefore, it is essential to use NEMT scheduling software while performing medical transportation services. In that case, Upper Route Planner could be your ideal route planning software , as it comes with an array of routing features. Using it, you can overcome on-road obstacles so that your patients reach hospitals on time.

With Upper, you can:

  • Save time by avoiding traffic jams and finding the best way to reach needy patients.
  • Save money by finding the quickest possible route with the lowest fuel usage so that medical essentials reach their destination on time.

Upper maximizes efficiency with less time spent traveling. Taking historical data and real-time information into account, it provides the best routes for each worker to take dynamically. So, all your drivers will never be late. Below is how Upper can be reliable route optimization software for those who want to run a medical transportation business.

1. Dispatch routes in a single click

Upper offers a one-click dispatch that helps you notify employees about upcoming appointments and stops. Moreover, if one of your drivers cancels an appointment due to an emergency, you can immediately reassign it to an available driver. As a result, patients never suffer.

2. Schedule routes for months

With Upper, you’ll save hours spent manually scheduling patients’ pickups or drops to or from medical appointments. All you need to have is a list of stops and delivery drivers, and Upper route planning software will do the job. This is a quicker and more efficient way to schedule routes and save time so that you can focus on more pressing matters.

Prioritize Patient Comfort with Automated Transport

Improve patient comfort and well-being with automated medical transportation solutions, delivering seamless and stress-free experiences.

Yes. As the population ages and people live longer, there’s an increasing demand for rides from home to doctors’ offices and hospitals. It means that if you’re willing to invest in your own business, you can have a profitable medical transportation business with only a few employees.

You’ll be paid $95 for each trip you take as a (NEMT business) non-emergency medical transportation business driver. That’s about $60 for your base rate and $35 for each mile you drive your passenger to their destination.

Yes, it is. The non-emergency medical transportation business is good because it is a highly regulated industry that requires specialized equipment and employees. It also allows you to diversify your business with additional rehab and home health care services.

The steps to consider for setting up your NEMT business include registering your business, acquiring necessary licenses and permits, considering partnerships with healthcare providers, obtaining insurance coverage, investing in vehicles and equipment, training/hiring qualified drivers, and implementing marketing strategies.

Putting Your Medical Transportation Plan into Action

Starting a medical transportation company or profitable senior transportation business, even if it’s non-emergency medical transportation, is not for the faint-hearted. You must be willing to invest the time and energy necessary to succeed and garner many opportunities.

When all is said and done, remember that you should be on time when running a medical transportation business for elderly and disabled patients. This is true even for non-emergency medical transportation (NEMT) services or new businesses that deal with non-emergency cases.

This is where Upper helps medical transportation companies. Upper route planning and optimization software ensure that you take all driving contingencies into account and have the shortest routes to always reach the patients on time.

Rakesh Patel

Rakesh Patel, author of two defining books on reverse geotagging, is a trusted authority in routing and logistics. His innovative solutions at Upper Route Planner have simplified logistics for businesses across the board. A thought leader in the field, Rakesh's insights are shaping the future of modern-day logistics, making him your go-to expert for all things route optimization. Read more.

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  6. Non Emergency Medical Transportation Business Plan Template

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