Do you want to know how private ambulance companies work and make money? If YES, here is a detailed description of the private ambulance business model.
In our modern world now and with our current lifestyle, ambulance services are always in demand. Having timely access to a well-equipped ambulance is a crucial factor in emergency situations where every second counts. An ambulance service is now a necessary asset to every community and you can choose to leverage this growing demand.
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Why Start a Private Ambulance Business?
Starting this business will not only benefit the community in a huge way but will also be a profitable business proposition. Starting and managing an ambulance service can be very a satisfactory business considering the fact that the returns are not limited to material and financial returns.
You get the mental satisfaction of being able to contribute to the society around you. But have it in mind that starting this business demands, very obviously, an ambulance. But before you go about buying one, you need to understand that there are two kinds of ambulances that you can choose from.
Types of Ambulance
The first is the emergency ambulance that is stocked with all kinds of first-aid and emergency equipment such as oxygen tanks, defibrillators and in some cases, is staffed a trained paramedic as well. The other is the non-emergency ambulance that is used to ferry patients from one place to another.
These ones are fitted with the basic first-aid and healthcare equipment that the patient may require during the trip. You can choose to run either of the ambulance services, and you can use both in your business as both are in demand always.
Requirements to Operate a Private Ambulance Business
Since this business is closely related to the healthcare industry, you would be mandated to acquire some very specific permits and certifications before you attempt to provide these services. All legalities need to be taken care of so that your business can run smoothly. Once these aspects are taken care of, you can start advertising your service in the local areas.
You should consider aligning with local hospitals to provide part-time or full time services to them. Note that the bigger your client base, the more users you would get access to. Don’t forget to keep close contact with local authorities such as the fire department in order to grow your contacts.
Checking out your rivals is also a smart way to build a successful business. Meanwhile, as the population keeps increasing, and what with the current lifestyle, health issues are rampant.
Regular visits to the hospital have become inevitable and most of the major health issues occur at inconvenient hours. It is an ambulance that offers the best care at this point. An ambulance service is a great business opportunity as well as a market that can never go out of demand.
How Private Ambulance Companies Work
Private ambulances work to replace the EMS in cases where patients need to go to hospital immediately, or when the case is not really an ’emergency.’ Patients who cannot drive or have nobody to drive them to where they want to go, are better off contacting a private service because these services are the ones that cater to this type of need.
Patients with conditions that require them to be comfortable while traveling to clinics or a doctor’s office or treatment centers need to contact a private ambulance. Our normal private cars are not equipped with the necessary space, convenience, and medical assistants who can care and pay attention to certain patient’s needs.
Private ambulances can also pick up patients from the hospitals when they are discharged and bring them home. They also transport patients to and from the nursing homes. Private ambulances can offer services outside of the city as EMS are not allowed to do.
Some large corporations need on-call ambulances for their employees especially when there are events outside their offices. People hosting big events sometimes hire private ambulances to be on standby just in case of emergencies. Private ambulances are most times equipped with the basic equipment for basic life support like medical technicians, paramedics, a specially-trained driver, wheelchairs, etc.
Although every city in the U.S. has their own ways of handling emergencies, there are some similarities in the way most local areas function. For instance, when someone makes a 911 call in the U.S., the phone operator, also called the dispatcher, reaches the ambulance company responsible for the area where the patient or caller is located. Reports have it that most ambulances arrive in at most 8 minutes from the time they were dispatched.
How Private Ambulance Companies Make Money
The rates charged by private ambulances are not regulated. Typically, the fee structure includes a base rate, charges for mileage, additional care, night and weekend charges, and others. Note that the bill may also depend on the category.
For instance, for Basic Life Support (emergency or nonemergency), the rate may be $400 plus $6.50 per additional mile rate. Other categories may include; Advance Life Support, Level 1 at $450 plus $6.50 per mile rate while an Advanced Life Support Level 2 may rate $875 plus $6.50 per mile rate. A Specialty Care Transport may be charged $450 plus $6.50 per mile rate.
Meanwhile, in the U.S., ambulances charge way more than they collect. It is that way all over the country. The reason is the collection rate. Note that the ambulance company might send out 10 bills for $1,500 each. Of the ten, two of the bills might be paid in full, another bill will be paid by Medicare at $450. Two more by Medicaid at $105 each.
The rest might never be collected because the patient didn’t have insurance or an address to send the bill. Once the $3,660 for all of that is collected and averaged across the 10 ambulance bills, a bill for $1,500 becomes a collection of $366, about 24.4 percent, which isn’t all that bad.
An ambulance service is a wonderful business opportunity as well as a market that can never be out of demand. You should remember that quality services will bring you accolades and recognition and in turn help you grow your business. With the right kind of attitude and thorough research, you can build your own company that will meet the demands of the industry.
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