Do you want to know how much it cost to open a medical transport business? If YES, here is a cost analysis for starting a non-emergency medical transport company.
Starting a business is not easy. It would require your time, strength, and most importantly, your money. So before you think about starting any kind of business, you have to make sure that you have the money to carry it out, or you will be able to get the money.
This same thing applies to the non-emergency medical transportation business. There are a lot of things to keep in mind when starting this business, and if you do not take proper cognizance of these things, you could end up starting a project that you cannot properly set up, or it might take you long before you get a foothold in the business.
Because of this, we would try to give you an estimate of what it would cost you to set up your Non-Emergency Medical Transportation Service. Know that the costs that would be mentioned here are only approximated. They may not apply accurately to your state or region, but notwithstanding, it would show you the kind of figures you would be looking at if you are to think of starting a non-emergency medical transportation business.
How Much Does It Cost to Start a Non-emergency Medical Transportation Business?
By some estimates, it can cost an average of $350,000 to start your own non-emergency medical transportation company. You need to register your business; cover legal, insurance, permit, and licensing fees; acquire a facility; purchase vehicles; pay utility bills and wage expenses; launch a website; and cover other costs.
Costs to Keep in Mind When Starting a Non-emergency Medical Transportation Business
To start off answering this question, we have to look at the kind of expenses you would be looking at incurring when you want start your non emergency medical transportation business.
- The cost of acquiring an ambulette
Ambulettes are non-emergency wheelchair vans which are typically used by businesses and facilities to transport both ambulatory and wheelchair passengers. Ambulettes are the vehicle of choice for nursing homes, adult day care centers, hospitals, transport companies, medical transportation providers, EMS facilities, fire departments, group homes, facilities for the developmentally disabled, and for your business.
When starting this business, you should note that your biggest expense will be the vehicles you need to transport clients in wheelchairs or motor scooters. Numerous companies sell converted vans, both new and used. If you already own a suitable vehicle, you can have it converted for accessibility.
Access can be provided through a rear-load system or side-load system, depending on the vehicle and your own preference. Rear-ramp systems are less costly to implement, and they can start at around $13,000 and going up from there, while side-ramp conversions can cost you a few thousand more, and already-converted vehicles cost more again.
You might also opt for accessible buses, which offer the ability to carry more passengers at a time and therefore generate more revenue per trip. Even if you have substantial startup funds at your disposal, it is recommended that you lease or finance your vehicles or conversions rather than committing your capital to an outright purchase.
Insurance is another place you would spend substantial capital. You need to obtain insurance for your ambulette vehicle operators, as well as for your business. California regulations mandate that ambulette operators must possess both comprehensive general liability and comprehensive auto liability with a combined single limit of $1,000,000 per incident. Insurance deductibles must be at most $5,000; greater deductibles may be allowable if the county’s risk manager grants permission.
- Getting a license
Licenses are another form of expenses you need to keep in mind while starting your non emergency medical trasportation business. Depending on your location, getting a license might not be so prohibitive. To start, you need to submit your application for a non-emergency transport business license to your county’s emergency medical services agency.
This application must include all applicable profit-and-loss statements, a detailed description of the geographical area within which the ambulette service will do business, a schedule of rates charged, insurance and liability coverage as well as a description of business facilities and vehicles. As of 2011, California licensing fees for non-emergency transport services were $361.72 per ambulette.
- Hiring Drivers
Even if you plan to launch as an owner/operator, you really would need staff as soon as you can. You’ll need at least one extra driver as soon as possible so you can maximize your vehicle’s potential while giving yourself time to manage and promote the company.
As you grow, you’ll need to hire additional drivers to keep up. Each driver should have a clean driving record and pass a criminal background check. Ideally, they should be bonded so your clients can feel confident about dealing with your company.
The people you hire should be personable and presentable to represent your company well. The national average salary for a Medical Transport Driver is ,960 in united states. The average wage per hour is usually between $8 to $12. With that, you know how much you get to pay your drivers.
5. Leasing a facility
On other heavy expense you have to take note of when starting your non emergency medical transportation business is getting a facility for your office. You indeed need to have a location which you can operate from.
Yes, you can decide to run your business from your home in the meant time, or online, but note that you would have more credibility if you have an office space. Note that most office spaces usually go $3000 for 1,200 square feet. This could increase or decrease depending on your location and what you want.
So, before you move forward any further to start your business, make sure you have enough money to launch the business. If not, you may have to sell some equity in your business to an investor or apply for a small business loan.