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Written by Elma Steven | Updated on February, 2024

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Find Out- Is Non Emergency Medical Transport Business Profitable?

The profitability of your Non Emergency Medical Transport business depends on 4 important factors: Industry Prospects, Investments, Revenue Sources, Cost and Profitability. We have taken a deep dive to find out potential profitability from the Non Emergency Medical Transport business. 

Non Emergency Medical Transport Industry Prospects

The global Non-Emergency Medical Transportation (NEMT) market size was valued at $15.2 billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 9.0% from 2024 to 2028, reaching $15.5 billion by 2028 (theinsightpartners). The market is anticipated to rise at a considerable rate between 2023 and 2031, with a projected value of $13.84 billion by 2030 (360researchreports). The NEMT market includes transportation services offered to patients who do not require emergency medical care. The growth of the NEMT market is attributed to the increasing need for NEMT services, the rising incidence of chronic diseasesand  the growing geriatric population. The US Non-Emergency Medical Transportation (NEMT) market size was valued at $10.5 billion in 2023 and is forecasted to reach $15.57 billion by 2028, with a compound annual growth rate (CAGR) of 9.0% during the forecast period (globenewswire)


  • Vehicles: The most significant investment. The cost varies depending on whether you buy new or used vehicles, the type of vehicle (vans, minivans, or small buses)and  any modifications needed to accommodate wheelchairs and stretchers.
  • Vehicle Modifications and Equipment: This includes costs for wheelchair lifts, ramps, stretcher mounts, safety restraintsand  other modifications necessary to transport patients safely.
  • Medical Equipment: Onboard medical equipment such as first aid kits, oxygen tanksand  defibrillators, if required.
  • Office Equipment and Furniture: Desks, chairs, computers, printersand  other office equipment necessary for administrative tasks.
  • Communication Equipment: Mobile devices, two-way radios, or other communication tools for coordinating transport services.
  • Software for Scheduling and Billing: Investment in specialized software for scheduling rides, managing client information, billingand  tracking payments.
  • Initial Marketing and Advertising: Costs associated with promoting your NEMT business, including website development, business cards, brochuresand  online or traditional advertising campaigns.
  • Signage and Branding for Vehicles: Costs for painting, decals, or wraps to brand your vehicles and make them easily identifiable.
  • Professional Fees: Upfront fees for legal, accountingand  consulting services, especially for licenses, permitsand  compliance with healthcare regulations.
  • Training and Certification: Costs for any specialized training or certification required for you or your employees to operate a NEMT business.
  • Initial Insurance Premiums: Upfront payments for vehicle insurance, liability insuranceand  any other insurance required for your business and employees.

Remember, these are initial investments needed to set up and start your NEMT business. It’s crucial to carefully plan and budget for these expenses to ensure a successful launch and sustainable operation.


  • Transportation Services to Individuals: Charging fees for transporting patients to medical appointments, dialysis treatments, physical therapy sessionsand  other non-emergency medical services.
  • Contracts with Healthcare Facilities: Establishing contracts with hospitals, clinics, nursing homesand  other healthcare facilities to provide regular transport services for their patients.
  • Insurance Billing: Many health insurance policies, including Medicare and Medicaid, cover non-emergency medical transportation. Billing these insurance providers can be a significant source of revenue.
  • Partnerships with Managed Care Organizations: Collaborating with managed care organizations that coordinate care for their clients can provide a steady stream of transport requests.
  • Subscription Services: Offering subscription-based services where clients pay a monthly or annual fee for a set number of rides or unlimited transportation within certain limits.
  • Long-Distance Transportation Services: Providing long-distance non-emergency transport, for instance, for patients who need to travel to specialized medical facilities.
  • Event-Based Services: Offering transportation services for events like health fairs, senior citizen gatherings, or community health initiatives.
  • Collaboration with Social Service Agencies: Partnering with agencies that serve individuals with disabilities, the elderly, or low-income populations who often need transportation to access medical services.
  • On-Demand Transportation Services: Similar to ride-hailing services, but specifically for non-emergency medical transport.
  • Specialized Transportation Services: Offering specialized transport services, such as bariatric patient transportation, which requires specialized equipment and vehicles.

Diversifying your revenue sources can help stabilize your income and make your NEMT business more resilient to market changes. It’s important to continually assess the demand for different services and adjust your offerings to meet the needs of your clients and community.

Cost of Services Sold

  • Fuel Costs: The cost of gasoline or diesel for your vehicles. This is likely to be one of your largest variable expenses and will fluctuate based on how much you drive.
  • Vehicle Maintenance and Repairs: Regular maintenance (such as oil changes, tire rotations, brake checks) and any necessary repairs. These costs will vary based on the age and condition of your vehicles and how much they are used.
  • Driver Wages: If you pay your drivers on a per-trip or hourly basis, these costs are variable and depend on the number of trips and hours worked.
  • Vehicle Cleaning and Sanitization: The costs associated with keeping your vehicles clean and sanitized between trips, which is especially important in the medical transport industry.
  • Medical Supplies: Costs for any medical supplies that might be used in the vehicle, such as first aid kits, gloves, masks, or sanitizers.
  • Tolls and Parking Fees: Expenses incurred for toll roads and parking while transporting clients.
  • Vehicle Depreciation: While not a direct out-of-pocket expense, the cost of vehicle depreciation can be considered a part of CoS as it represents the wear and tear on your vehicles over time.
  • Insurance Premiums (Variable Portion): A portion of your vehicle insurance that may vary depending on usage, such as per-mile insurance rates.

Remember, efficient management of these variable costs is key to maintaining the profitability of your NEMT services. Strategies like optimizing routes to reduce fuel consumption, regular vehicle maintenance to prevent costly repairsand  effective scheduling to maximize driver hours can help control these costs.

Operating Expenses

  • Office Rent or Mortgage: Regular payments for your business office space.
  • Utilities for Office Space: Costs for electricity, water, internetand  other utilities at your office location.
  • Insurance: General business insurance, vehicle insurance (a portion not related to mileage)and  liability insurance specific to medical transportation.
  • Salaries for Administrative Staff: Wages for employees involved in administration, dispatch, customer serviceand  management.
  • Marketing and Advertising: Expenses for promoting your business, including online advertising, brochures, business cardsand  community outreach.
  • Professional Services: Fees for services such as accounting, legal advice, compliance consultingand  other professional services.
  • Software Subscriptions: Costs for software used in managing your business, like scheduling software, billing softwareand  any other specialized NEMT management tools.
  • Office Supplies and Equipment: Regular expenses for stationery, printer inkand  other office supplies, as well as any office equipment purchases or leases.
  • Training and Certification: Costs related to ongoing training and certification for you and your staff to stay compliant with industry standards and regulations.
  • Vehicle Loan Repayments: If you have financed your vehicles, the monthly loan repayments are part of operating expenses.
  • Depreciation of Non-Vehicle Assets: This includes depreciation of office equipment, furnitureand  other long-term assets.
  • Taxes and Licenses: Costs for business licenses, permitsand  any applicable local, state, or federal taxes.
  • Miscellaneous Expenses: This category includes any other costs that do not fit neatly into the above categories but are necessary for running your NEMT business.

It’s important to manage these operating expenses efficiently to maintain the financial health and profitability of your NEMT business. Regular review and careful planning of these costs can help in optimizing operations and improving your bottom line.