Medical Transportation Business

Non-medical transportation businesses help people get to pre-scheduled healthcare appointments, including doctor visits, rehab, clinical testing, follow-up exams, and more. In recent times, the demand for safe and reliable public transportation for people with medical issues and disabilities, particularly in rural communities, has witnessed massive growth.

According to industry reports, this demand is expected to continue growing and also remain strong in any economic climate. However, third-party services quite similar to Uber and Lyft are expected to be introduced into the market in the future to provide these services on demand. In addition, a few taxi businesses have moved into the medical transport market.

Steps on How to Write a Non-Emergency Medical Transportation Business Plan

1. Executive Summary

Sidekick LLC is a non-emergency medical transportation service that will be based in Detroit, Michigan, and will service cities around Detroit such as Windsor, Hamtramck, River Rouge, Grosse Pointe Park, Dearborn, Melvindale, Grosse Pointe, Ecorse, Lincoln Park, and Harper Woods. We intend to target those within the low-income range as well as those with disabilities. At Sidekick LLC, we will also provide VIP services for high-income clients.

  1. Company Profile

a. Our Products and Services

At Sidekick LLC, our services will aid people who either use wheelchairs, stretchers, have a plastered leg/hand, and any other movement restricting injuries. Our transportation services are specifically targeted at people who require something more comfortable, facilities better than a cab but not an ambulance. Our vast range of services includes;

  • Medical Appointments
  • Doctor Appointments
  • Physical Therapy
  • Dialysis Treatment
  • Outpatient Surgery
  • Treatment Centers
  • Prescription Drug Pick Up
  • Dental Appointments
  • Optometrist Visits
  • Hospital Checkout
  • Emergency Room Pick Up
  • Long Distance Transportation
  • Shopping
  • Errands
  • Airport drop-off and pick-up
  • Church Services
  • Social Events
b. Nature of the Business

Just like a taxi, our clients will pay Sidekick LLC to carefully escort and transport them to appointments and places. Aside from transporting clients from their homes to the doctor’s office, we will also service assisted-living facilities, nursing homes, palliative care facilities, and related medical entities. At Sidekick LLC, we are very eager to provide personalized services to our clients by paying close attention to their specific transport needs and challenges.

c. The Industry You are in

Sidekick LLC is a non emergency medical transportation business built to compete favorably in the US healthcare transportation industry. This market in the U.S. is bifurcated on medical and non-medical transportation, and we are ready to take the non-medical segment by storm.

d. Mission Statement

Our mission is to provide medical transportation services that help an aged person or those under minor health constraints visit healthcare facilities for check-ups and invitations. Our transportation service is designed to fulfill non-emergency purposes.

e. Vision Statement

Our vision is to provide a simple medical non-emergency transportation model that will give employees immense satisfaction..

f. Tagline or Slogan

Sidekick LLC – A Friend When You Need One

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Sidekick LLC will be registered as a Limited Liability Company in the State of Illinois. We believe this business structure will offer us limited liability protections and we can also benefit from its pass-through taxation model.

h. Organizational Structure
  • Chief Executive Officer
  • Human Resource and Admin Manager
  • Caregivers
  • Drivers
  • Marketing and Sales Agent
  • Accountant/Cashier
  • Call Center Agent/Front Desk Staff
i. Ownership/Shareholder Structure and Board Members

Sidekick LLC will be solely owned and managed by Karisma Lloyd, a former director at Envision HealthCare. She has over 17 years experience in the healthcare transportation industry.

  1. SWOT Analysis

a. Strength

At Sidekick LLC, we believe our workforce serves as the core strength of the company. They are our top assets and their years of experience and professionalism will ensure our clients receive excellent services and attention. In addition, our customer services, call centers, and service offerings will count as a strength for us, and give us an edge over similar businesses.

b. Weakness

Being a newly established business, we acknowledge that we have to compete in an industry where there are well-established players with financial capabilities to purchase latest equipment such as ADA-specific transport vehicles and air transport facilities like helicopters.

c. Opportunities

A good number of folks require medical non-emergency transportation services to get to pre-scheduled healthcare appointments, including doctors’ visits, rehab, clinical testing, follow-up exams, and more. Owing to this growing demand, we believe there is a massive market for our services.

i. How Big is the Industry?

According to reports, when measured by revenue, the Global Non-emergency Medical Transportation Market generated USD 7,091.56 million in 2020 and is expected to reach USD 7,560.06 million in 2022, growing at a CAGR of 6.94% to reach USD 10,609.66 million by 2026.

ii. Is the Industry Growing or Declining?

Aside from the fact that the general healthcare transportation industry is growing encouragingly, NEMT remains the fastest-growing segment of all medical transportation industries. Experts predict a growth rate of more than 4% during the period from 2018 to 2026.

iii. What are the Future Trends in the Industry

Although NEMT is a very crucial element in medical care, rideshare companies are becoming very interested in the market. According to industry reports, ride-sharing services have forced a 7% decrease in the usage of ambulances.

However, rideshare vehicles are not adequately equipped to offer the sort of service that NEMT companies do. NEMT providers are qualified enough to offer both ambulatory and critical care, and according to experts, it is an invaluable part of the healthcare ecosystem and cannot be substituted by ride-sharing transportation.

iv. Are There Existing Niches in the Industry?
  • Non-emergency air transportation
  • Medical tourism
  • Wheelchair Transportation
  • Medical Taxi Service
v. Can You Sell a Franchise of your Business in the Future?

Yes, at Sidekick LLC we intend to offer franchise opportunities to willing entrepreneurs in the near future. We believe that selling franchise opportunities will also help us secure patients in multiple areas.

d. Threats

At Sidekick LLC, we acknowledge that competitive issues are always going to remain a threat as well as any changes in reimbursement schedules. Nonetheless, we also believe that strong gross margins generated from the services we offer despite potential declines in revenue will also allow our company to remain profitable and maintain a positive cash flow.

i. Who are the Major Competitors?
  • AirMed International
  • International SOS
  • MedjetAssist
  • SkyMed
  • Air Ambulance
  • MASA Assist
  • Global Rescue
ii. Is There a Franchise for Non-Emergency Medical Transportation Business?
  • Caliber Patient Care: $55,000 – $100,000
  • Stellar Transport: $95,000 – $140,000
  • NEPAT Inc.: $150,000 – $350,000
  • Comfort Keepers: $66,010 – $99,390
  • Medex Patient Transport: $105,015 – $155,240
  • Wheelchair Getaways Franchise: $40,000-$112,000
  • Home Care for the 21st Century: $95,800 – $203,000
  • Caring Senior Service: $58,585 – $107,450
  • Express Medical Transporters Franchise: $175,000-$242,000
iii. Are There Policies, Regulations, or Zoning Laws Affecting Non-Emergency Medical Transportation Business?

Yes, however, the non-emergency medical transportation industry is more or less still in its infancy both in terms of technological innovation and federal regulation. Although there are no formal guidelines for the NEMT industry, each state tends to have its own set of operational rules and regulations that all businesses are expected to follow. Vehicle licensing is also another vital element of the non-emergency medical transportation industry.

  1. Marketing Plan

a. Who is your target audience?

i. Age range

At Sidekick LLC, our primary target audience will be Baby Boomers who are in their 50s or 70s. We will also target infants and toddlers who require regular medical check-ups, therefore have to visit healthcare child clinics often.

ii. Level of Educational

According to reports, a good percentage of our target audience must have completed high school or even have a bachelor’s degree or higher. However, at Sidekick LLC, we believe that the Education level of our target audience can also vary exponentially by race and ethnic origin.

iii. Income Level

At Sidekick LLC, we intend to target those within the low-income range as well as those with disabilities who need our reliable services. We will also provide VIP services for high-income clients who may want to use our services too.

iv. Ethnicity

  • African American (not Hispanic): 12%
  • Asian American (not Hispanic): 13%
  • Native Hawaiian and Other Pacific Islander (not Hispanic): 10%
  • American Indian and Alaska Native (not Hispanic): 12%
  • Hispanic: 8%
  • Persons identifying as two or more groups: 6%

v. Language

As long as they can communicate, we at Sidekick LLC are willing to offer our services to you.

vi. Geographical Location

  • California (5.8 million)
  • Florida (4.5 million)
  • Texas (3.7 million)
  • New York (3.3 million)
  • Pennsylvania (2.4 million)
  • Ohio (2 million)
  • Illinois (2 million)
  • Michigan (1.8 million)
  • North Carolina (1.8 million)

vii. Lifestyle

Our ideal clients at Sidekick LLC are patients facing constant health compulsion to travel from their homes to the clinic, and they need a fitting and responsible non-emergency transportation service.

b. Advertising and Promotion Strategies
  • To increase sales, we intend to advertise our services through the distribution of pamphlets with beautiful designs displaying our contact information and particulars at hospitals, medical stores, clinics, maternity services, and healthcare center.
  • We will also create an alliance with doctors, hospital staff members, nurses, therapists, physicians, etc.
  • We intend to only hire responsible staff.
  • All service calls would be attended to professionally and we intend to set up a dispatch center representing our very own non-emergency medical transportation company
  • Be very tactful and smart to cope with marketing & sales competition.
  • Discounts, additional benefits like a free first ride
i. Traditional Marketing Strategies
  • Becoming a state-registered business so government agencies can offer our contact information when they work with people who need transportation services.
  • Advertise our transportation services to retirement and assisted living facilities as well as medical offices.
  • Offer to make presentations to local senior citizen community groups.
  • List our business with websites that help people find transportation, such as Paratransit Watch.
  • Sign up for a free listing on Google Maps so our business can be listed when people look up non-emergency medical transportation services.
ii. Digital Marketing Strategies
  • Review Funnel Enhancement
  • Web Programming & Development
  • Content Writing Marketing
  • Email Marketing Services
  • Search Engine Marketing (SEM)
  • Search Engine Optimization
  • Website Optimization
iii. Social Media Marketing Plan
  • Setting up/enhancing our social media presence
  • Improving our brand imagery
  • Augmenting our business location and industry online
  • Creating a brief summary about our non-emergency medical transport business
  • Inculcate other businesses as connections
  • Creating content for our business
c. Pricing Strategy

At Sidekick LLC, we understand that our business carries operating costs above purchasing vans. There are higher insurance premiums, maintenance fees, fluctuating fuel costs, and many more. We will consider these factors when developing our pricing strategy.

  1. Sales and Distribution Plan

a. Sales Channels

At Sidekick LLC, we plan to reach out to nursing homes, assisted living facilities, retirement communities, and hospitals in our business area to see if we can align for regular transport. We will also hang up flyers in grocery stores and local businesses where our target group shops, and also create an informative website.

b. Inventory Strategy

At Sidekick LLC, we plan to leverage a good software application to manage all our business inventories. We believe this will make it easier for us to focus on other pertinent issues.

c. Payment Options for Customers

At Sidekick LLC, we intend to make available the following payment options to clients.

  • Payment via bank transfer
  • Payment with cash
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
d. Return Policy, Incentives, and Guarantees

We will not offer any form of the return policy at Sidekick LLC; but being a properly instituted business, we will ensure that all our employees and drivers are properly trained, extensively instructed, and well monitored. We will also carry extensive insurance to ensure our agency can recover from mistakes or claims.

e. Customer Support Strategy

In this line of business, safety and experience is the name of the game especially in terms of retaining customers. At Sidekick LLC, we plan to let our clients know how we intend to handle the unexpected, and how we take absolute care to ensure that all of our riders make it to their final destination in one piece. Reliability, punctuality, and accuracy are our watchwords.

  1. Operational Plan

At Sidekick LLC, we will offer accessibility, reliability, and safety to patients. Have it in mind that all our drivers are specially trained, CPR-certified, Defensive Driving-certified, Hospice Sensitivity-certified, PASS-certified, drug-tested, and background-checked for extra passenger security.

In addition, all our vehicles are newer models and they will be cared for and maintained regularly, with heavy-duty wheelchair lifts to accommodate wheelchairs of all sizes. All our vehicles will also be fully equipped with stretchers of the highest quality, accommodating both standard and bariatric needs. Oxygen is available upon request (must be administered by the caregiver).

a. What Happens During a Typical Day at a Non-Emergency Medical Transportation Business?

Owners of non-emergency medical transportation businesses may perform the following jobs on a daily basis:

  • Establishing relationships with nursing homes/hospices/doctors’ offices
  • Coordinating driver’s schedules
  • Driving between medical facilities
  • Vehicle maintenance
b. Production Process (If Any)

There are no production processes at Sidekick LLC!

c. Service Procedure (If Any)

We at Sidekick LLC understand that the type of transportation we provide is time-proved and efficient for patients and the medical care system. Howbeit, it may need some improvements. For instance, if our business operations are processed manually, it will surely warrant lots of paperwork, phone calls or emails, etc. This leads to slow workflow, errors, and results in detrimental delays.

However, to effectively perform our jobs and stay competitive, we will consider a high-quality, intelligent NEMT routing software solution. After extensive research and deliberation, we have chosen to leverage the RouteGenie NEMT software. This software is a tried-and-trusted solution that manages all transportation and communications logistics through one dashboard in an automated manner.

d. The Supply Chain

Just like it was noted above, our business management software is a ground-breaking technology that automates all aspects of our non emergency medical transportation operation, including dispatching, scheduling, routing, billing, driver management, customer notifications, and more.

We will also use it to handle daily challenges like traffic problems, vehicle breakdowns, driver call-offs, cancellations, no-shows, on-demand trips, among other things. In addition, the software simplifies billing to reduce errors and allow for faster reimbursement times.

e. Sources of Income
  • Per Mile Rates
  • No-Show Fees
  • Minimum Charges
  • Flat rate fees
  • Weekend and Holiday Fee’s
  1. Financial Plan

a. Amount Needed to Start your Non-Emergency Medical Transportation Business?

We will need around $430,000 to start Sidekick LLC successfully. This cost stems from a variety of factors that include; registering the business, covering legal fees, finding a suitable facility, signing up for insurance, purchasing permits and licenses, purchasing vehicles, paying utility bills and wages, launching a website, marketing your business, among other things.

b. What are the Costs Involved?
  • The Fee for registering the business in the United States –$800.
  • The budget for legal fees, insurance, permits, and license – $7,000.
  • The cost of leasing a facility – $84,000.
  • The Cost for the purchase of furniture and equipment (Flat Screen TVs, computers, printers, and cabins et al) – $12,000.
  • Other start-up expenses include stationery – $3000.
  • Phone and utility deposits – $3,500.
  • The Cost for the purchase of ADA compliant vans– $230,000.
  • The Cost of Launching a Website – $600.
  • Cost for payment of salaries for the first 3 months of operations – $64,000.
  • Additional Expenditure (Business cards, Signage, Adverts, and Promotions et al) – $5,000.
c. Do You Need to Build a Facility?

No, Sidekick LLC will be started and managed out of a well-furnished facility at the hub of Chicago, Illinois.

d.  What are the Ongoing Expenses for Running a Non-Emergency Medical Transportation Business?
  •  Vehicle/equipment maintenance
  • Driver salaries
  • Commercial insurance
  • Vehicle purchases/payments
  • Vehicle insurance
  • Rent costs
  • Fleet/parking lot costs
e. What is the Average Salary of your Staff?
  • Chief Executive Officer: $72,780/Year
  • Human Resource and Admin Manager: $56,120/Year
  • Drivers: $52,310/Year
  • Marketing and Sales Agent: $48,670/Year
  • Accountant/Cashier: $46,034/Year
  • Call Center Agent/Front Desk Staff: $38,740/Year
f. How Do You Get Funding to Start a Non-Emergency Medical Transportation Business
  • From personal savings and sale of personal stocks and properties
  • From investors and business partners
  • Loans from your banks
  • Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
  • Source for soft loans from your family members and your friends.
  1. Financial Projection

a. How Much Should You Charge for your Service?

At Sidekick LLC, we understand that a good percentage of our business will be gotten from a broker. Owing to that, the broker will most times be deciding how much they will pay us for services rendered. However, we will once in a while have time to negotiate on special trip requests such as something outside our normal coverage zone. For these requests, we intend to look at the circumstances and increase the rates already agreed upon accordingly.

b. Sales Forecast?
  • First Year: $54,000 (From Self – Pay Clients): $90,000 (From Medicaid Covers)
  • Second Year: $184,000 (From Self – Pay Clients): $162,000 (From Medicaid Covers)
  • Third Year: $340,000 (From Self – Pay Clients): $800,000 (From Medicaid Cover)
c. Estimated Profit You Will Make a Year?
  • First Fiscal Year (FY1): $12,000 (21% of revenue generated)
  • Second Fiscal Year (FY2): $98,000 (35% of revenue generated)
  • Third Fiscal Year (FY3): $211,000 (45% of revenue generated)
d. Profit Margin of a Non-Emergency Medical Transportation Business Product/Service

According to industry reports, the profit margin will depend on several factors, such as business location, marketing & promotional strategies, the corporation services alliances, the service quality, and a lot of other factors. However, at the starting stage of the medical non-emergency transportation company, the profit margin is usually less, about 20- 30%.

  1. Growth Plan

At Sidekick LLC, we plan to offer franchise opportunities to willing entrepreneurs after 5 years of business success. We believe that selling Franchise opportunities will help us secure more markets and patients in multiple areas. Owing to the rising and encouraging number of seniors in these locations, we intend to expand to the following locations;

  • California (5.8 million seniors)
  • Florida (4.5 million seniors)
  • Texas (3.7 million seniors)
  • New York (3.3 million seniors)
  • Pennsylvania (2.4 million seniors)
  • Ohio (2 million seniors)
  • Illinois (2 million seniors)
  • Michigan (1.8 million seniors)
  • North Carolina (1.8 million seniors)
  1. Exit Plan

At Sidekick LLC, our exit plan will be acquisitions and mergers, especially since we believe the acquisition will advance our relationship with several key players and add more to our estimated annual revenue. We also believe that the merger will drive greater access to care and elevate our client experience.