The average NEMT vehicle running full time with efficient NEMT management software can generate about $1000 a week in gross revenue, with a little over $120,000 per year. Whenever any entrepreneur wants to start a new business, one of the first questions they usually ask is how profitable the business is or how much they are likely to make on average from the business. This narrative also applies to entrepreneurs who are looking towards starting a NEMT business (non-emergency medical transportation).
To have an idea of the amount a NEMT business owner is expected to make, you should clearly define the services non-emergency medical transportation businesses offer. As expected, a well–established NEMT business is expected to provide transportation alongside medical care for patients either by ground or air.
So, with that in mind, we can estimate what a NEMT business that offers the services listed above is expected to make. It is important to point out that there is no one-mold-fits-all when it comes to how much a NEMT business owner is expected to make. There are some factors that we are going to look into before giving an estimate of how much an average NEMT business owner can make yearly.
Factors That Determine How Much NEMT Businesses Can Make Yearly
Table of Content
- The Size and Capacity of the NEMT
- The Location of the NEMT Business
- The Type of Services Carried Out by the NEMT Business
- The Management Style of the Business
- The Business Approach of the NEMT Business
- The Advertising and Marketing Strategies Adopted by the NEMT Business
- The Number of Years the NEMT Business is in Existence
The Size and Capacity of the NEMT
You will agree that no one can conveniently state the amount a NEMT business is expected to make yearly if you do not know the size and capacity of the business and the number and types of ambulettes they have available for the business. As expected, a NEMT business that has only a handful of ambulettes is expected to make far less than one that has several brands of ambulettes covering different locations.
The Location of the NEMT Business
We must not rule out the fact that the location of a NEMT business is a major factor that will determine the amount the business will earn monthly. If a NEMT business is located in a city with a high aging population, then the owner of the business is expected to make more money.
The truth is that you will struggle to make good money from your NEMT business if you are located in an area with a healthy and youthful population. Besides, NEMT businesses are restricted to a certain geographical area, which is why before starting this type of business, you must ensure that you are in a place where this type of business thrives.
The Type of Services Carried Out by the NEMT Business
Another important factor that will determine how much a NEMT business is expected to make yearly is the type of services offered by the business.
You will agree that the money a NEMT business that offers services like providing non-emergency air ambulance services, providing non-emergency surface ambulance transport services, and providing nursing aide (CPR and first aid) services et al, will be far larger than what a NEMT business that only offers non – emergency surface ambulance transport services will make monthly.
The Management Style of the Business
Another key factor that will determine the amount a NEMT (non-emergency medical transportation) business is expected to make yearly is the management style of the business. Trust me, the results you will get when you are a good manager will be far different from what a NEMT business with a poor management style and customer service will make.
The idea is that a good NEMT business will not just retain their old customers, but will also keep getting new customers through recommendations. This no doubt will greatly influence the amount they will make annually.
The Business Approach of the NEMT Business
There are different business approaches that a NEMT (non-emergency medical transportation) business can choose from and no doubt it will greatly influence what they are expected to make monthly and yearly. A NEMT business may decide that they want to operate only one location, but they can also decide to go into franchising and also partner with other businesses that will recommend clients to them.
It is easier to find NEMT businesses that operate franchises partner with hospitals, and Medicare & Medicaid Service businesses. In essence, a well-organized NEMT business that works with others will surely make more money than one that only operates from one location.
The Advertising and Marketing Strategies Adopted by the NEMT Business
Another key factor that will determine the amount a NEMT (non-emergency medical transportation) business can make yearly is the advertising and marketing strategies adopted by the business. Trust me, a lot of advertising and marketing strategies can help a business increase their earnings, how to be it, you may be expected to spend more.
But the results you will make will far outweigh the amount you spent on advertising and marketing. Of course, you don’t expect a NEMT business that is engaging in aggressive advertising and marketing to make the same amount yearly as a NEMT business that is passive with its advertising and marketing.
The Number of Years the NEMT Business is in Existence
Lastly, another key factor that will determine the amount a NEMT business is expected to make yearly is the number of years the NEMT business is in existence. In business, the number of years you are in existence will go a long way to determine the amount you will make especially if the business is well–managed.
For example, in your first fiscal year (FY1) you might make two hundred and fifty thousand dollars (250,000), in your second fiscal year (FY2) you might make three hundred and fifty thousand dollars ($350,000) and in your third fiscal year (FY3) you might make four hundred and fifty thousand dollars ($450,000).
What is the Profit Margin of a NEMT Business?
Findings show that the Profitability and Market Outlook for a NEMT Business is put at a 13.35 percent annual growth rate projection, so there are plenty of opportunities for NEMT businesses to make gains. Based on these pricing ranges and average operational costs, the average NEMT vehicle running full time with efficient NEMT management software can generate about $1000 a week in gross revenue, with a little over $120,000 per year.
Apart from the cost of the ambulettes, you will need to consider the finance for fuel, maintenance, and advertising when calculating your profit margin. This price depends on a large number of variables including the location, insurance, extra fees, and charges, and your choice of ambulettes. Extra costs such as prepaid fuel or GPS can make a significant increase to your final price.