What New NEMT Providers Need to Know
Embarking on the journey of starting a Non-Emergency Medical Transportation (NEMT) provider business can be both exciting and intimidating. This guide will walk you through the essential steps to launch your NEMT venture successfully. Whether you’re a seasoned entrepreneur or new to the healthcare transportation industry, this post will provide valuable insights to help you navigate the complexities of starting an NEMT provider business.
Defining Your Services
To establish a solid foundation for your operations, you must understand the different types of services offered by NEMT providers and choose which one suits you best. By determining your services, you inform potential clients what offerings they can expect when they contract you for trips.
There are four types of services in the NEMT provider space:
- Ambulatory Transportation: designed for members who can walk without assistance. It is still essential that your vehicles provide space for mobility aids like canes or walkers.
- Wheelchair Transportation: designed for members who require wheelchairs or have limited mobility. Your vans must have ramps or lifts for easy entry and exit.
- Stretcher Transportation: caters to members who require transportation lying down but do not require medical assistance during the trip.
- Courier Service: designed for the transport of sensitive medical equipment.
Securing the Necessary Requirements
Establish a Business Entity
When starting your own NEMT provider business, you must determine the business type you want to run.
There are four business entities to choose from:
- Sole Proprietorship: a simple business structure where you are the sole business owner and be held personally liable for all debts and obligations.
- Partnership: like a sole proprietorship, but there are two more owners. Partners share the profits and liabilities for business debts.
- Limited Liability Company (LLC): often the best choice for new NEMT providers because it entails limited liability protection. You are not personally liable for business debts and obligations, but you must prepare an Operating Agreement outlining how you’ll run the business.
- Corporation: a corporation establishes your business as a legal entity separate from you as the owner. You would be considered a shareholder with limited liability protection.
TIP: Whenever a health entity is registered in the US, you must apply for a NPI number (National Provider Identifier). This unique identification number is assigned to covered health care providers to facilitate electronic transmission of health information.
Licenses and Certifications
Once you have defined your service type and established a business entity, it is essential to research the requirements to start your operations. Research your state’s specific requirements for NEMT providers, obtain necessary licenses and certifications, and fulfill legal obligations to operate legally. Each state has different regulations, so comply with all local requirements before starting your NEMT business.
Some certifications and licenses you may need to obtain are:
- Insurance Coverage:
a. Commercial auto insurance for your fleet
b. General liability insurance
c. Additional coverage like workers’ compensation and professional liability insurance. - Business License:
a. To operate your NEMT provider business, you must secure a business license. The process for obtaining this license depends on the state in which you operate, so it is important to check with local authorities to understand the specific requirements for the application process. - Vehicle Licenses and Registrations:
a. All vehicles must be adequately licensed and registered for commercial use.
b. There may be unique registrations or inspections specific to NEMT. - Driver Licensing and Certification:
a. A valid driver’s license with the appropriate number of points
b. Background checks
c. Negative drug testing
d. Health assessments - Additional Certifications:
a. EIN (Employer Identification Number) offers a standard way to identify employers in electronic transactions. The Internal Revenue Service issues EINs, which must be on all HIPAA electronic transactions.
b. First aid and CPR training
c. Wheelchair transport training
d. Vehicle maintenance certification
TIP: Organizations like the Non-Emergency Medical Transportation Accreditation Commission (NEMTAC) offer industry-recognized accreditations that can boost your credibility as a smaller NEMT provider business.
Identify the Source of Your Trips
For your business to be profitable, you need trips! While it can seem overwhelming to establish your clientele, it is essential to research the key players in your industry.
Consider reaching out to:
- Brokers and Health Plans: reaching out to local brokers may be the simplest way to generate a solid trip manifest. Brokers can help provide a steppingstone into the market, helping build a solid list of members to elevate your operations.
- PACE, IDD, and Aging Groups: with the rapid increase of individuals ages 65+, there is a greater need for NEMT providers in this space. Reach out to groups and programs that facilitate transportation for vulnerable populations, attracting the clientele you know requires your services.
- Hospitals and MCOs: while hospitals and managed care organizations (MCOs) often have their own means of transportation for their patients, they are still a viable source for trips. Establishing relationships with hospitals and MCOs would allow steady referrals to your services.
Time to Hit the Ground Running!
Following these steps will prepare you to launch your NEMT provider business. However, this is only the beginning. Part two will discuss the operational strategies to follow once you have launched your business. One of the fundamental investments to consider when starting your NEMT business is implementing a comprehensive software solution that grows with you.
That’s where we come in. If you are in the market for innovative NEMT provider software, Momentm is the one for you. Reach out to us, and we would love to start a conversation with you to see how we can build Momentm together.
