February 18, 2012

NEMT Business Strategy #1: Diversification

NEMT BUSINESS STRATEGIES - Diversifying a business, regardless of the industry, is a bit of a two edged sword. On the up side, there is the potential of developing a lucrative new revenue stream, and your business will no longer be completely reliant on the inevitable ups and downs of one particular market. On the other side, if you have under estimated the potential of the new venture, or have committed too much of your company's resources to a lost cause, you run the risk of taking everything down with it. Whether a Non-Emergency Medical Transportation (NEMT) company is looking to diversify into other areas, or if an existing business from another industry is considering expanding into NEMT; there are common factors that are key to successful diversification:

1. They operate in the same way. NEMT providers can expand into other areas of transportation by utilizing existing methods of operation. Management and employee expertise and knowledge can be utilized in both areas. Video #2 shows how entrepreneur Carlos Banks used his previous experience to expand into the courier business. You can learn more at How to Start a Successful Courier & Small Package Delivery Service.

2. Resources can be shared. Joel Davis, author of How To Build A Million Dollar Medical Transportation Company shares in one of the additional materials that come free with his ebook, how he used his vehicles to take advantage of a new market opportunity. As, then owner of Safe & Direct Transportation Services, he began using his under utilized ambulatory vans for shuttle services to a local airport.

3. They share the same client base. NEMT providers are often transporting people who use Home Health Care services. As shown in the following video, this is an area with much potential because of the growing elderly population. You can learn more at Home to Build a Million Dollar Home Care Agency.

VIDEO #1


Examples of diversified companies that provide NEMT services:

1. Care Transportation - Minnesota Transportation Company involved in a number of transportation related enterprises including auto sales and service, taxi service, community transportation coordination, and non-emergency medical transportation. Read More...

2. Comfort Coach Transport - California NEMT company that also provides a concierge service for seniors. Their companions assist in shopping, errands, computer skills, and help in arranging such things as finding a reliable contractor for home repairs etc. Read More...

3. Complete Care Systems - Illinois Home Care company that provides a variety of non-medical services including cleaning, snow removal, lawn care , and transportation services.

4. Dierkes Transportation - New York State Transportation Company. Began in 1976 as family business transporting developmentally disabled children to special needs programs. Has since expanded into providing NEMT for Medicaid clients. Read More...

5. Health Care Associates Private Duty Home Care - Michigan Home Care Agency that provides a variety of Medicare Certified services. They also operate a NEMT division: Health Care Associates Transport. Read More...

6. King-American Ambulance Company - California EMS Ambulance service founded in 1906. In 2003 began a NEMT division: Allied Medical Transport. Read More...

7. Posten Transportation - Pennsylvania transportation company that has expanded from it's beginnings in 1860 as a horse drawn delivery to a wide variety of services including taxi, courier, errands, airport transfer, and non-emergency medical transportation. Read More...

8. PRN Health Services - Pennsylvania Home Health Care company founded in 1979, that operates a non-emergency medical transportation division: PRN Para Transit Service. Read More...

9. Tender Hearts Senior Care - Arizona Home Health Care Agency. Besides the direct care their caregivers provide, they also provide assisted ambulatory transport to doctor's appointments and shopping. They also operate a NEMT division: Tender Hearts Transportation Service. Read More...

10. Toronto Para Transit - Canadian company founded in 1995 that specializes in wheelchair accessible transportation services has since expanded into accessible taxis, special needs student busing and a NEMT Wheelchair Bus division. Read More...

VIDEO #2


- RELATED POSTS -

- Interview with Steffon Liford of Loving Touch Transportation, Michigan
- Interview with Robert Hall of Basic Life Support, Arizona
- Interview with Carlos Banks of the Wheelchair Taxi, North Carolina
- Interview with Howard Berkowitz & Danny Hester of Tropical Transportation, Fl.
- Interview with Dr. Richard Terry discussing Health Care & the Future of NEMT
- NEMT Business Opportunities - Introduction to NEMT
- Start Your Own NEMT Business - featuring Joel Davis
- Buying an Existing NEMT Business featuring The Tenney Group
- Opening a NEMT Franchise featuring Express Medical Transporters

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