Enter your search term

Search by title or post keyword

How To Start a Medical Transportation Business in Five Simple Steps [2023 Update]

Are you having a hard time figuring out where and how to start a medical transportation business?

Do you feel overwhelmed with all the planning and research? You’re not alone.

Starting a business can be mind-boggling for many people, especially with minor experience.

Luckily, medical transportation, especially the non-emergency type, is a growing business that’s not hard to start.

Plus, experts expect it to almost double its value by 2028, with a compound annual growth rate CAGR of 9.1%.

In this article, you’ll know all the details about launching a successful medical transportation business and what to expect.

How Profitable Is Owning a Medical Transportation Business?

The increasing demand for medical transport has contributed to the success of this kind of business.

On average, one vehicle can accomplish between $50,000 and $60,000/year in gross revenue according to the region.

For example, a non emergency medical transportation (NEMT) ride starts at $25 and may increase to as much as $250. The rates depend on many factors, including the patient’s state and which day of the week it is.

On average, holidays and weekends cost 20%–50% more than regular weekdays.

The regular ambulatory service costs between $25 and $45, while wheelchair transportation is more expensive.

As for the most pricey service of all, the stretcher transportation, it costs between $100 to $250.

Other additional can also add to the bill, such as

ServiceAverage Cost
Wait time$15–$30
Additional Attendant$5–$10
Extra Mileage$3–$10

What You Will Need To Start a Medical Transportation Business [& Associated Costs]

Outlining a solid business plan is vital because it guarantees your business becomes twice as likely to succeed.

From papers to staff and marketing, there are a few aspects to cover when thinking about starting a medical transportation business.

The overall estimated cost for the whole business depends on the size you’re considering starting with. You should expect to pay between $12,000 to $25,000 for setting up the business.

Here’s the detailed cost estimation:

  • Licenses: The license fees for such a business vary from one state to the other. According to California’s Department of Healthcare Services, registering your business costs an application fee of $688.
  • Vehicles: You need some ambulettes to transport passengers with an implemented rear or side-load system. This costs up to $20,000 over the cost of the vehicle itself.
  • Insurance: The costs vary depending on the number of vehicles, their model, the region, and the driver’s record. On average, insurance coverage costs $3,500–$7,500 per vehicle.
  • Equipment: You need to equip all the vehicles with first-aid kits and other necessary safety tools.
  • Staff: The more your business grows, the more staff you’ll need to hire. According to ZipRecruiter, the average monthly salary for a non emergency medical transport driver is $2,363.
  • Facility: You’ll need to have an office space at some point, which costs an average of $3000 per month.
  • Marketing: Investing money in online marketing for your business is a great idea to get more customers.

Do I Need a License or Certificates To Start a Medical Transportation Business?

Yes, medical transportation service providers need to issue some licenses and permits. You need to check the requirements before applying as they change from one state to the other.

You also need health permits and licenses from the Occupational Safety and Health Administration (OSHA) as well as copyrights, intellectual properties, and industry-specific licenses and permits.

First-aid classes, driving lessons, emergency training, and handling disabled passengers courses are a plus.

Requiring your future employees to take these certificates is highly beneficial for your business’s reputation.

Why You Should Consider Starting a Medical Transportation Business as a Side Hustle

The demand for medical transportation businesses is increasing, and launching a start-up is now easier than ever.

Here are a few reasons to consider starting a medical transportation business.

  • Demand: A great number of senior folks need such businesses. As the National Institute of Health (NIH) reports, about 3.6 million adults miss medical appointments due to transportation barriers.
  • Growth: According to the U.S. Census Bureau, senior citizens are increasing. By the year 2030, this number is to reach 73.1 million. This causes the demand for this type of business to become greater each year.
  • Logistics: Unlike businesses needing inventory to store or send out to customers, this is a service-based business. This means it doesn’t require storage or logistics.
  • Cost: The process of starting a business like this doesn’t involve many expenses. You can even start with one vehicle and expand over time.

How To Start a Medical Transportation Business in Five Simple Steps

vector graphic showing an illustration of how to start a medical transportation business

Starting your business can be a scary experience, especially with not enough experience. However, with the right plan and mindset, everything is achievable.

Step #1: Decide Your Business’s Legal Entity

For future relations with the taxing authorities, you need to determine your business’s legal status.

Whether a sole proprietorship, limited liability company (LLC), partnership, corporation, or cooperative, each has advantages and disadvantages.

Imagining the future of your business and mapping it out helps in deciding the legal structure you choose to operate it under.

This, in turn, protects your business against liability and aids you in getting the needed licenses.

Step #2: Register Your Business and Get Insurance

After deciding the legal structure of your medical transport business, you’ll need to register with OSHA and issue a license for operating it. That’s because most states require a taxpayer identification number for such businesses.

As for business insurance, it’s not a matter to overlook. Insurance is crucial, especially in vehicle-operated businesses. It can protect you from liability in case one of your cars has an accident or a passenger gets injured while in your care.

Step #3: Spend Some Money on Equipment

As a business providing transportation for patients, you need ambulances and NEMT vehicles.

Unlike other transportation gigs requiring an ordinary car, a medical transport vehicle must be wheelchair accessible.

Note that you must equip your NEMT business vehicles with the following:
● Wheelchair ramp or lift
● GPS tracking device
● First-aid kit
● Fire extinguisher
● Emergency light
● Stretchers, wheelchairs, walkers
● Oxygen tanks and other needed special equipment

Step #4: Hire the Saff

Besides some emergency preparations, your staff must know how to operate the vehicle equipment and use the wheelchair lift safely.

Your employees will also need to know how to handle the electronic documentation system if you’re transporting Medicare or Medicaid patients.

Other positions you’ll need to fill when your business grows larger are accountant, marketing specialist, general manager, and dispatcher.

Step #5: Market Your Business

To reach potential customers, you should work on marketing your business. Setting up a website and social media accounts is essential for people to know you exist.

Developing relations with other referral sources, like hospitals, medical labs, and senior homes can also be helpful.

Keep in mind that most of your customers are elderly or disabled. Try to make your business accessible with an easy-to-use website.

Things To Consider When Building a Medical Transportation Business

You’re not going to be the only business in the market, and you should be well-prepared for any obstacles along the way.

Can You Run a Medical Transportation Business by Yourself?

It’s possible to run such a business by yourself at the beginning, but you’ll need more help as it grows larger.

Operating multiple vehicles, you’ll need extra people to handle customers, optimize drivers’ schedules, and work on advertising campaigns.

Do You Have the Means to Fund Your Business?

The main part of this business, which is the fleet, costs a huge sum of money. Not to mention how vital it is to keep the overhead costs in mind.

Fuel, vehicle maintenance, software, and utilities can all affect the overall overhead costs.

If you think all these expenses may be over your budget, business experts suggest getting a loan [1] to help you raise capital.

Do You Have a Unique Selling Proposition?

It’s essential to focus on what makes your business unique with all the competition in the market. That’s why you should consider having a unique selling proposition (UPS).

For example, you can compete to provide the fastest response, the best customer care, or the easiest-to-use service.

INSPIRATION: Medical Transportation Business Ideas

There are a few ideas associated with the medical transportation business field to consider. You don’t necessarily have to stick to driving patients to medical appointments and back.

Check out the following ideas.

  • Non Emergency Medical Transportation Business: Focusing on non emergency medical transportation has advantages. It requires less paperwork and less specialized staff, as it focuses on only driving patients to medical appointments.
  • Funeral Car Rental Service: This can work as a separate branch of the main medical transportation business. It’s a profitable business specializing in transporting the remains of people from hospitals to mortuaries or burial sites.
  • Air Ambulance Business: It’s one of the most profitable medical transportation business ideas, only if you have the financial means to consider it. The global sales of this business have reached $5.5 billion with an expected CAGR of 12.3%.

Frequently Asked Questions

Is it hard to start a transport business?

Starting a transportation business can be challenging, but it’s highly profitable.

You need to work hard and do thorough research before attempting to take the first step, as good planning leads to success.

What are the expenses for a transportation business?

Expenses vary depending on the type of business you’re considering.

Whether it’s a taxi, bike rental, car rental, limousine, trucking, or medical transport business, there are a few fixed costs.

This includes the vehicle’s price, special equipment, driver hiring, licensing, and insurance.

Similar Businesses To Consider Starting

The idea of the transportation business is thriving right now with promising profits.

If you think starting a medical transportation business isn’t the right fit for you, check the following alternatives.

Wrapping Up

Knowing the basics of how to start a medical transportation business is vital.

Not only does it help you secure a strong business plan, but it also enables you to avoid future complications.

Beginning by reading this article is the first step on the path to a successful business. That’s because it offers a thorough guide to help you in your journey.

Don’t hesitate to comment with your opinion below, and if you like this article, share it with you friends.

Leave a Comment

header graphic for how to find a business name post on gigworker.com
  • Naming a Small Business
  • Small Business
  • Starting a Small Business

How to Find a Business Name: Best Tips and Strategies

October 13, 2023
6 min read
FRH Article Default
  • Flipping Houses
  • Starting a Small Business

How to Start a House Flipping Business in 9 Steps [2023]

September 27, 2023
13 min read
FRH Article Default
  • Starting a Small Business

How to Start a Knife Sharpening Business in 8 Simple Steps [2023 Update]

August 15, 2023
7 min read

Explore More within Gigworker

Other App-Based Gigs
Get to work faster with jobs in the gig worker industry.
post explore

Browse Our Gig Headquarters

The gig economy is booming, and thanks to COVID-19, more people than ever are getting involved. But what is this new sharing economy and how does it work?

Important Gig Economy #Fundamentals to Understand

gigworker logo icon
What is the Gig Economy?

Member’s Area

Unlock access to forums, groups, downloadable content, exclusive courses, and more – just for members.

Create an Account

Side Hustle Ideas

Get inspired with our list of 750+ side hustles. Sort by category, rating, and other custom taxonomies.

Browse Side Hustles

Gig Companies

Browse our complete list of gig economy companies, and the gigs they’re hiring for.

Helpful Content

Read thousands of informative posts, written specifically to help you excel in your favorite gigs.