Do you want to know how much it cost to start a private ambulance business? If YES, here are 13 factors that determine the cost of opening a private ambulance service. The Ambulance Services industry comprises of both private and municipal operators that basically provide transportation alongside medical care for patients either by ground or air.

Ambulances are usually equipped with lifesaving equipment operated by medically trained employees i.e., nurses and doctors et al. In the United States, most hospitals don’t own ambulances. If you call the hospital in a medical emergency, they will tell you to hang up and dial 911. Ambulances are mostly owned either by fire departments (or other public agencies) or independent ambulance services (private businesses).

The Ambulance Services industry is thriving industry that rakes in over $16 billion annually with an annual growth rate projected at 2.5 percent and interestingly, the industry is open to any aspiring entrepreneur who has acquired the required capital and business exposure.

The Estimated Cost Breakdown to Start an Ambulance Service

When it comes to starting an ambulance services business, one is expected to spend the bulk of the startup capital on purchasing and equipping different types of ambulance and of course renting and equipping a parking facility. Aside from that, you are also expected to secure the required license and permits, service, maintain and fuel the vehicles, then pay your employees and utility bills.

In view of that, here are the key areas where you are expected to spend your startup capital on if you want to start an ambulance services business;

  • The total fee for registering the business in the United States of America – $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
  • Marketing promotion expenses for the grand opening of the business in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The cost for hiring business consultant including writing a business plan – $2,500.
  • Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $12,400.
  • The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $146,000.
  • The cost for office and parking lots construction – $60,000.
  • Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500) – $3,000
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $90,000
  • The cost for purchasing first set of ambulances and medical equipment – $450,000
  • The cost for equipment and accessories – (GPS, dependable phone, internet access on the road, safety equipment, basic tools, spare parts, gasoline and diesel, brake fluid and engine oil, uniforms, safety boats and hand gloves et al) – $100,000
  • The cost for store equipment (cash register, security, ventilation, signage) – $3,750
  • The cost of purchase and installation of CCTVs and car tracker software- $22,500
  • The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
  • The cost of launching a Website – $600
  • Miscellaneous – $5,000

From the rough estimate as listed above, you would need a minimum of eight hundred and ninety – two thousand, nine hundred and twenty USD ($892,920) to establish a medium – scale but standard ambulance services business with about a dozen ambulances in any city in the United States of America.

Please note that this is a rough estimate and we usually advise our readers who are interested in opening an ambulance services business to directly contact suppliers of the brand of ambulances and medical equipment they would need to get the real time prices of these items.

The truth is that if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above.

Factors That Influence the Cost Of Opening an Ambulance Business

  1. The Brand and Number of Ambulances You Are Starting With

A major factor that will determine the overall cost of opening ambulance services business in the United States of America is the number and brands of ambulances you intend starting the business with. For example, if you choose to start with an air ambulance, you are expected to spend far more that those who intend starting on-ground ambulance services.

  1. The Choice of Location

Another major factor that will determine the cost of opening an ambulance services business in the United States of America is your location. In business, location is key part of what determine the success of the business. As a matter of fact, there are business consultants cum realtors who are specialized in helping people choose an ideal location for their type of business; a location that will guarantee them profitability and to breakeven within the shortest time frame.

The truth is that the location you choose to open your ambulance services business determines if you will be issued the required business license and permits. Government officials must first inspect your facility to be sure that it is located in the location zoned for such business.

Please note that in the United States of America zoning violations and citations can be very costly for a business. It is always preferable to make sure you comply with all the zoning and land use laws before you choose a location for your business or you stand the risk of having the business closed down before it even gets started.

  1. The Required Licenses and Permits

In the United States of America, you cannot open an ambulance services business without first applying for the mandatory licenses and permits. Top on the list is that you would need an Ambulance Operator’s Registration license.

You will be expected to pay the $300 dollar application fee to the Federal Motor Carrier Safety Administration and apply for a freight broker’s license and a USDOT number. You will also need, building license, zonal permits, and signage permits amongst others that may be unique to different cities and states.

These license ad permits cost money and it will influence the overall cost of opening an ambulance services business in the United States of America. In order to get the overall cost of licensing and permits associated with opening a new ambulance services business in the United States, we will advise that you reach out to your county, city council or state government. You also need to consider state and federal requirements.

  1. The Type of Facility

The type of facility you want to run your ambulance services business from is also a major factor that will determine the overall cost of opening this business in the United States.  As regards the facility, you have the option of renting, leasing or designing and constructing your own facility from the scratch.

With renting and leasing a facility, you will just spend a little to modify the facility to fit into what you have in mind, but there is a limit to how far you can go and it will be dependent on what the landlord of the facility wants.

Let us assume that you want to construct your ambulance services business facility from the scratch. It means that you will buy the land or property, construct and equip the facility to fit into the ideal picture you have in mind. You will agree that you are going to spend way more when compared to people that rent or lease a facility.

  1. Additional Service Offerings

Another key factor that will determine the cost of opening and operating an ambulance services business in the United States of America is of course, the additional services offerings of the ambulance services business. The fact that there are no one mold fits all means that these ambulance services businesses are designed to offer different services.

For example, an ambulance services business may decide to provide both emergency and non medical emergency medical transportation services (air or ground) or even decide to go into the servicing and maintenance of ambulances for clients. This means that they will need additional facility, equipment and staff to handle this aspect of the business.

In essence, some of the additional services you are going to be offering will cost you more.

  1. The Cost of Hiring and Paying a Business Consultant and Attorney

If you want to get your business started on the right foundation, it will be a wise decision to hire the services of a competent business consultant and perhaps an attorney. A business consultant will help with drafting a workable business plan document for the business, a marketing plan and strategy, comprehensive SWOT, and provide other advisory services.

An attorney on the other hand will help you with registering the business, drafting contract documents and offering you all the legal expertise that will help you start the business on the right foundation. Of course, you will agree that these services will cost you money and it will indeed influence the overall cost of opening an ambulance services business in the United States of America.

  1. The Cost for Branding, Promotion and Marketing

The cost of branding, promoting and marketing the ambulance services business is yet another key factor that will determine the overall cost of opening an ambulance services business in the United States of America. Trust me, if you need massive results as it relates to competing and winning a fair share of the available market in your city, then you must be willing to pay for effective branding, promotion and marketing.

As a matter of fact, it is not cheap to come by an expert in branding, promotion and marketing that will help you compete with brands that are already determining the market direction of the industry in your city. So, if you add the cost of paying a branding and marketing expert, it will sure increase the cost of opening your business.

  1. The Cost of Furnishing and Equipping Your Facility

Another very important factor that will determine the cost of opening an ambulance services business is of course the cost for furnishing and equipping the facility. You will quite agree that aside from the basic facilities that are found in an ambulance services business facility, an investor that wants to open such business may decide to spend more to make his or her facility to be unique.

As expected, before you can open an ambulance services business, you should budget for medical equipment and supplies, flat screen TVs, sound system, internet facility, GPS tracker, office furniture (table, stools and sofas), drawers and cabinets, telephones, filing cabinets, office equipment (cash register, security, CCTV, ventilation, signage), amongst others. All these will cost money and it will influence the overall cost of opening your facility.

  1. The Cost of Insurance

The cost for paying for insurance is yet another important factor that will determine the overall cost of opening an ambulance services business in the United States of America. In the United States and in most countries of the world, you can’t operate a business without having some of the basic insurance covers. Thus, it is imperative to create a budget for insurance policy cover and perhaps consult an insurance broker to guide you in choosing the best and most appropriate policies for your business.

But all in all, you would need to make plans to purchase general insurance, liability insurance, health insurance, commercial hull insurance, physical damage insurance, uninsured or underinsured motorist and motor vehicle insurance (comprehensive insurance) et al and this will cost you money.

  1. The Cost of Registering the Business

The cost of registering the ambulance services business is yet another cost that will influence the overall cost of opening an ambulance services business in the United States of America. Although, the cost of registering a business is minimal, it will still add to the overall cost of opening an ambulance services business in the United States of America.

  1. Source of Your Supplies and Ongoing Expenses

Another major factor that will determine the cost of opening an ambulance services business in the United States of America is the source of your supplies such as medical supplies and equipment that are found in ambulances, gasoline or diesel, then maintenance et al.

If you have in-house maintenance technicians, it will increase your profitability while running the ambulance services business.

  1. Cost of Recruiting and Training Your Staff

The fact that you are opening your ambulance services business as a new business means that you are expected to recruit and train your staff. The training will help you sell the corporate culture of your organization to your new employees. As expected, it will cost you money to hire expert trainers that will help you train and bring your new hires up to speed and that will add to the overall cost of opening an ambulance services business.

  1. The Cost for the Purchase and Customizing of Uniforms

Another factor that will determine the overall cost of opening an ambulance services business in the United States is the cost of the purchase and customizing of uniforms to be worn by your employees. Your staff (doctors, nurses, drivers and assistants) and of course security personnel are expected to all have different uniforms and they are expected to put on these uniforms when they are on duty. All these uniforms will cost you money which is why it must be part of your budget.

In Conclusion,

Please note that there are other factors not listed above that will sure influence the overall cost of opening your ambulance services business which is why we will advise that you work with a result driven business consultant in your city to give you the needed guide and info as it relates to the unique factors in your location that will influence the overall cost of opening your ambulance services business in the United States of America.

Frequently Asked Questions

  1. How Do You Start An Ambulance Service?

To start an ambulance service, here are steps to consider;

  • Determine the location of the company by picking an area in the centre of health care facility clusters and senior housing.
  • Scout out the competition to determine the approximate size the company needs to be and the area it will respond to.
  • Get financial backing.
  • Find a medical director, write a policy and procedure manual, and obtain a drug license.
  • Buy equipment and vehicles.
  • Generate business.
  • Get insured.
  • Hire staff.
  1. Can Just Anyone Own An Ambulance?

Yes, many services including construction and delivery companies will purchase a used ambulance for their business. All you do is remove the red or blue bulbs and any ambulance name or ambulance identification.

  1. What Safety Factors Are Built Into The Ambulance System?
  • Designated training program
  • Warning devices
  • Cot lifting systems
  • Safe seating
  • Comprehensive maintenance plan
  1. How Does One Start A BLS Ambulance Company?

BLS Ambulance is an ambulance that stabilizes transports and monitors the patient enroute to the hospital emergency room. BLS ambulances are staffed by EMT caregivers and provide transports for patients who require basic medical monitoring for situations such as: Lower extremity fractures. To start an ambulance service, here are steps to consider;

  • Determine the location of the company by picking an area in the centre of health care facility clusters and senior housing.
  • Scout out the competition to determine the approximate size the company needs to be and the area it will respond to.
  • Get financial backing.
  • Find a medical director, write a policy and procedure manual, and obtain a drug license.
  • Buy equipment and vehicles.
  • Generate business.
  • Get insured.
  • Hire staff.
  1. Do Ambulance Drivers Need A CDL?

No. In the United States, as long as it is an Emergency Vehicle under 26,000 pounds, and is operated by a first responder; you are covered under a normal Class C license.

  1. Can You Negotiate Ambulance Bill?

Yes, negotiating with an ambulance service or any medical provider is not easy, but it is possible.

  1. What Is The Structural Integrity Of The Ambulance System?

Unlike automobiles which are built according to national safety standards published by the federal government, the structural integrity and safety of ambulances is the responsibility of each individual state.

Some states now purchase ambulances that meet either the NFPA or CAAS national standard, but much work remains before we will see new and safer ambulance designs in every state and territory.

  1. How Do You Call A 108 Ambulance?

The 108 Emergency Ambulance Service is a 24×7 service, which anyone can avail by dialling the number 108 on their phone during the case of any emergency. Help reaches the person within 20 minutes.

  1. How Would You Start An Ambulance Service From Scratch?

First you’ll have to get a vehicle that meets your state’s requirements for an ambulance service, then you have to hire employees. This includes a system to electronically file patient reports, a designated compliance officer, a HIPAA policy and all other insurances and fees of any business.

Once that is accomplished, you can apply for a national provider number in order to bill Medicare and private insurance companies. Without this number, insurance companies won’t pay for service. Now you have to find contracts with nursing homes and/or municipalities.

  1. Does Medicare Pay For An Ambulance?

Yes, Medicare Part B will cover ambulance services when it’s deemed medically necessary, and when an alternate means of transportation could be hazardous to your health.

  1. How Much Does It Cost To Start An Ambulance Service?

Starting an ambulance services in the US costs, on average, $350,000, Depending on where you’re located and what unique needs your business requires, your total cost could be more or less. The following expenses make up that total and may vary from state to state:

  • Business registration fee – $725
  • Legal fees, insurance, license, certificates – $6,000
  • Cost of leasing a facility – $50,000
  • Facility renovations – $12,000
  • Office supplies – $8,000
  • Vehicles – $200,000
  • Fuel and vehicle maintenance – $20,000
  • Salary expenses – $40,000
  • Utility bills – $4,000
  • Website creation – $500
  • Additional expenditure (business cards, signage, signage, promotions, etc.) – $5,000
  1. Why Do You Have To Pay For An Ambulance?

Aside from the ‘transportation’ designation, and the need to avoid inappropriate use, ambulance fees are justified on the basis that the system just can’t afford to cover the entire cost. Ambulances are not usually free. They cost a lot to keep on the road and charge a lot to get you from point A to point B.

  1. What Does A Private Ambulance Do?

Private ambulances pick up patients from the hospitals where they are discharged and bring them home. They also transport patients to and from the nursing homes. Private services can offer services outside of the city as EMS are not allowed to do.

  1. How Can You Call Ambulance in Bangalore?

As we all know, Bangalore is most populated city in Karnataka state, and Karnataka now has an integrated emergency helpline number, 112, which will allow residents of the state to call for police, fire and emergency, and ambulance services.

  1. Who Started Ambulance Service In India?

AP Ranga Rao is credited with first conceptualizing 108 ambulance services in India, having spent 10 years working with the National Health Service (NHS) in Britain learning about emergency systems.

  1. What Is The Ambulance Number In India?

108 is a toll-free emergency ambulance number in India

  1. How Do You Start An Ambulance Service In India?
  • Demand for an ambulance in the local area
  • Purchase your Ambulance
  • Get all required Permissions and Registration for Ambulance
  • Get the help required for ambulance service business
  • Ambulance tie-up with hospitals
  • Cost and benefits in the ambulance service business
  1. How Much Does It Cost To Hire An Ambulance For A Day?

It depends enormously on where you live in the United States or in the world. Medicare allows something under $400 as a base charge, with an additional $10 or so per loaded mile and some additional charges for medications, oxygen, cardiac monitoring, etc. It’s unusual for an emergency ambulance transport to cost less than $800 or so.

  1. How Can You Get An Ambulance In India?

There’s no common number to call an ambulance in India. Dialling 108, 102, 1099 or 1298 might work, but it depends on the state and how much money you have.

  1. Do Ambulance Companies Make Money?

Yes. Ambulance companies that are run for profit receive revenue from a few different sources depending upon the service they provide. However, it depends on the contracts, number of hospitals, population, how many nursing homes, sports arenas an ambulance company can service.

  1. Are Ambulances Public Or Private?

In the United States, Ambulances services can be public or private.

  1. Do You Call An Ambulance For A Dead Body?

Yes, if the death was unexpected, you should dial 999 and ask for an ambulance and police immediately. You will be told what to do by the operator to establish whether you can try and resuscitate the person. The paramedics will carry out resuscitation or will confirm the death.

  1. How Can You Start A Small Ambulance Service?
  • Determine the location of the company by picking an area in the centre of health care facility clusters and senior housing.
  • Scout out the competition to determine the approximate size the company needs to be and the area it will respond to.
  • Get financial backing.
  • Find a medical director, write a policy and procedure manual, and obtain a drug license.
  • Buy equipment and vehicles.
  • Generate business.
  • Get insured.
  • Hire staff.
  1. What Are The Requirements To Be A Paramedic?
  • Complete EMT Basic Training. Both EMTs and paramedics must obtain CPR certification.
  • Pass a National or State Exam to Become Certified. EMTs and paramedics both need state certification to practice.
  • Complete Advanced EMT Training (Optional)
  • Complete a Two-Year Degree Program (Optional)
  1. Can You Be Refused An Ambulance?

No, most agencies will not allow their ambulance personnel to make such decisions simply because of the liability.

  1. How Much Money Do Ambulance Service Companies Make?

In the United States, a small private company (1 or 2 ambulances) may make $750,000. While a larger company (20–30 vehicles) can make $20 million only after their expenses drops dramatically. Cost of equipment, computers, supplies, Maintenance, facilities, bad debt, ongoing training, payroll, add up quickly.

  1. In Nigeria Beside CAC What Other Registration Does One Need To Run An Ambulance Service?

There is no other special registration; however, if your ambulance is carrying an emblem, you have to pay for it and other business permit.

  1. Why Are American Ambulances So Big?

American ambulances have been designed to carry more equipment, with duplication of equipment and supplies in some instances, with less of a national emphasis on safety during the formative years in the U.S. EMS Systems.

  1. How Would One Start An Independent Ambulance Service In The UK?

Setting up a new ambulance business in the UK could be rewarding for you, but there will be vehicles to pay for, and you will need medical staff, a receptionist and a secure depot. Electricity and business rates will also all have to be paid for. You will need to advertise your presence and to stay afloat while you build a client list and secure contracts. You will also need to invest in marketing, establishing a local presence and setting up a website.

  1. Are You Allowed To Sell An Ambulance To Anybody In The General Public?

Yes, you can sell a de-commissioned ambulance to anybody in the general public. You will need to remove/cover the emergency lights to be legal to drive it in many (if not all) states.

  1. If Somebody Doesn’t Give Way To An Ambulance On Purpose, Does It Give The Ambulance Driver The Privilege To Ram The Blocking Vehicle If Necessary?

No, intentionally striking another vehicle is a motor vehicle collision. No one ever wants to be involved in one, either in their personal vehicle or, much less, a company or municipal vehicle.

  1. How Would You Start A Private Ambulance Service?
  • Plan your business
  • Get the team of experienced professionals
  • Find your clients
  • Licenses for the business
  • Choose a space for your business
  1. What Happens If You Don’t Pay Your Ambulance Bill?

Depends on where you live and how the ambulance company handles bad debt. Some will seize your state tax refunds, garnish wages and seize any lottery winnings. Some will turn over your debt to a collection agency who can report you to the credit bureaus.

  1. Why Are Ambulance Rides So Expensive?
  • Equipment and Workers Cost Money
  • Medicare and Medicaid Underpay for Services
  • Insurance Companies Follow Suit
  • Flaws in the Payment Model
  • Response Time Requirements Are Restraining
  1. What Is The Cost Of A Private Ambulance Service In The US?

It varies State to State, and mileage, and type of ambulance. However, reports have it that 79% of patients who took a ground ambulance could be on the hook for an average fee of $450 after their insurance paid out. By comparison, air ambulances can cost the average patient $21,700 after the insurance pays out.

  1. Do Private Ambulances Collect Dead Bodies?

Yes, for the purposes of tax and insurance, you’ll see many undertakers registering their vehicles as private ambulances for the purposes of more amenable tax and insurance costs.

  1. How Much Does A Decommissioned Used Ambulance Cost To Buy For Personal Use?

Most used ambulances have high mileage and usually need maintenance. However, a used or decommissioned ambulance will cost around $10, 000 – $50, 000.

  1. What Type Of Services Would Be Rendered By 108?

The ‘108’ ambulance service is the largest, operating across 22 states and union territories to provide free emergency medical service for all type of emergencies and for transport of pregnant women. The service provides en route basic life support and obstetric care through trained emergency medical technicians (EMT).

  1. What Do The Numbers On FDNY Helmets Stand For?

The number matches the fire engine number. The second number is the ladder number. One glance gives the information necessary to identify what station house a fire fighter works out of.

  1. How Many 108 Ambulances Are There In Karnataka?

As at 2020, there are 715, 108 ambulances in Karnataka

  1. Is Ambulance Free In USA?

No, Ambulances in the United States are not usually free.