Self-performing vs. Outsourcing Non-emergency Medical Transportation

As the nations economy continues to suffer, so do government and private healthcare agencies. Everyone is making cuts, trying to save money, one way or another. One way healthcare organizations can save money, without making cuts to their employees or services, is to outsource their non-emergency medical transportation services to professional NEMT businesses that can provide these services better, faster, and cheaper. For your consideration, here is an estimate of expenses for providing NEMT services in-house compared to outsourcing them.

In-house Transportation Expenses:

These estimates are based on self-performing transportation services per one passenger vehicle or wheelchair van with driver.

  • Cost of one ambulatory passenger vehicle or wheelchair van, equipped with the necessary equipment and technology: Ambulatory Vehicle: $20,000; Wheelchair Van: $45,000; Avg. Payment: $650/month ($7,800/year)
  • Depreciation: $6,510
  • Annual insurance premiums: $3,000-$5,000 (depending on vehicle value)
  • Annual salary and compensation for one part time driver: $18,000 – $25,000
  • Annual salary and compensation for oversight management time: $12,000 – $40,000+, depending on number of vehicles
  • Driver training and certifications: $200 per driver
  • Driver background check: $30 per driver
  • Annual fuel costs (1-2 fill ups a week): $5,000
  • Annual vehicle repair and maintenance (oil changes, tires, etc.): $2,600
  • Driver medical exams: $60

Total In-House Annual Expenses: $67,190 or $5,599/month

These cost estimates don’t include interest on loans or large vehicle repairs, i.e; motors.

In-house Transportation Cost per Month, per Trip:
10 Trips = $559; 20 Trips = $279; 30 Trips = $186; 40 Trips = $139; 50 Trips = $111; 100 Trips = $56; 200 Trips = $28.

Outsourced Transportation Costs:

Sedan Service: Base fee per trip: $15 + $1.60 (avg.) cost per mile over base fee = $27.80 (Avg. trip 8 miles)

Wheelchair Service: Base fee per trip: $15 + $2.60 (avg.) cost per mile over base fee = $35.80 (Avg. trip 8 miles)

Savings: 100 Trips = 100% or $2,820 per month, per vehicle.

There is a national trend for organizations to outsource services that don’t align with their core competencies. By doing this, it saves them time and money so they can focus on their core customer services that generate revenue.

Contact the experts at Holt Transport to be your Non-emergency Medical Transportation provider.