How to Open a Medical Transportation Company

Medical transportation companies serve the elderly, the disabled and ambulatory patients.

Medical transportation companies offer increasingly vital services, including transporting ambulatory patients to ancillary departments within the same health care facility and assisting the disabled and the elderly in getting to the hospital. While the public sector provides and coordinates most emergency transportation services in the U.S., private companies handle most non-emergency medical transportation. With most baby boomers approaching retirement age, the demand for these services in the United States is on the rise. Starting a medical transportation company to serve your community can be both challenging and rewarding.

Things You'll Need

• Licenses and permits
• Insurance policy
• Vehicles

Instructions

Starting a Medical Transportation Company

1. Obtain financing. As with any business, you will need funds to purchase the necessary equipment and lease or acquire office and warehouse space. Start by drafting a budget and prioritizing. Purchase a small number of vehicles in the beginning. Look for used equipment which is in good shape or can be adapted to the needs of your company. Leasing equipment is also an inexpensive alternative. If you cannot finance the new business, apply for a bank loan or look for private investors. While a corporation gives you limited control over your business, stockholders can help jump start the company.

2. Get licenses and permits. All transportation businesses require special permits and licenses. In addition to regular Department of Transportation licenses, each state designates the requirements for medical transportation companies. Some states may also demand that you register your business with its respective department of health and human services, especially if you plan on providing emergency transportation services. Check with your state and local governments to learn all the licensing requirements. Websites such as www.dot.gov also offer resources and general license information.

3. Purchase insurance policy. Emergency and non-emergency medical transportation companies usually require large insurance policies because they operate specialized vehicles which transport patients. These policies can be quite expensive, so shop around. Check with local and national insurance companies for the best quotes and the lowest down-payment options. Look for insurance companies that offer specialized policies which cover medical transportation businesses.

4. Acquire vehicles. You can start with a small fleet or just one vehicle, and add more vehicles as the business grows. Make sure all vehicles you purchase comply with the safety regulations mandated by your state department of health and human services. You may also need to customize vehicles to accommodate patients in wheelchairs and stretchers.

5. Recruit and train employees. Medical transport services involve care, cooperation and following procedures. Your employees must be attentive, compassionate and able to assist patients with disabilities. They must also be able to take precautions against possible contamination and keep vehicles and equipment clean. If your company provides emergency transportation services, your drivers and paramedics must have appropriate medical assistance training. Make sure the drivers you hire also have a clean driving record. Most states offer training opportunities for individuals working in the medical transportation field.

6. Arrange for Medicare and Medicaid billing. Since private companies rarely cover non-emergency medical transportation services, most payments come directly from customers or from Medicare. Some insurance companies cover emergency transportation. Your office must be equipped to file for different types of insurance in addition to Medicare and Medicaid. You must register with your state's Medicaid office to become an approved provider and be able to accept Medicaid payments.

7. Market the business. Once you register with your state as a medical transportation provider, the state will relay your contact information to health care facilities in your area and individuals who need such services. Advertise your business in local health and wellness magazines, and to contact retirement and assisted-living communities about your services.

Tips & Warnings

• Hire only drivers with clean driving records and who are willing to submit to random drug and alcohol testing.

References

• Business.gov: Resources for Starting a Non-Emergency Medical Transportation Business