Starting an NEMT Business in Tennessee: A Comprehensive Guide

Starting a Non-Emergency Medical Transportation (NEMT) business in Tennessee is a rewarding venture that provides essential services to the elderly, disabled, and those with medical needs. This guide will walk you through the steps to establish an NEMT business in Tennessee, including obtaining licenses, selecting vehicles, securing insurance, and training staff.

Step 1: Conduct Market Research

Understanding the market demand, competition, and specific needs within Tennessee is crucial before starting your NEMT business.

Useful Resources:

• Tennessee Department of Health: Provides health statistics and demographic information. Tennessee DOH
• Tennessee Department of Transportation (TDOT): Offers insights into existing transportation services and infrastructure. TDOT

Step 2: Develop a Business Plan

A well-structured business plan is essential for guiding your operations and securing funding. Your business plan should include:

• Executive Summary: Overview of your business, mission, and goals.
• Market Analysis: Insights from your research, including target market and competition.
• Services Offered: Detailed description of your NEMT services.
• Marketing Strategy: Plans for attracting and retaining clients.
• Financial Projections: Startup costs, operating expenses, and revenue forecasts.
• Operational Plan: Daily operations, staffing, scheduling, and vehicle maintenance.

Step 3: Choose a Legal Structure and Register Your Business

Decide on a legal structure for your business (e.g., sole proprietorship, partnership, LLC, or corporation) and register it with the appropriate authorities.

Registering with the State:

• Tennessee Secretary of State: Register your business and obtain necessary state licenses. Tennessee SOS
• IRS EIN Application: Obtain a federal Employer Identification Number (EIN) for tax purposes. IRS EIN Application

Step 4: Obtain Necessary Licenses and Permits

Business License: Secure a business license from your local city or county government.

NEMT Provider Certification: To serve Medicaid recipients, you must be certified by the Tennessee Department of Human Services (TDHS).

• Website: Tennessee DHS
• Contact Information: 615-313-4700

Vehicle Permits and Inspections: Register and inspect your vehicles according to Tennessee state regulations.

• Tennessee Department of Safety and Homeland Security: Register and inspect your vehicles. Tennessee DOSHS
• Contact Information: 615-251-5166

Driver Requirements: Ensure all drivers have valid Tennessee driver’s licenses and undergo background checks and drug testing. They may also need to complete additional training, such as CPR and First Aid certification.

Step 5: Acquire Vehicles and Equipment

Invest in reliable, well-maintained vehicles suitable for NEMT services. Depending on your target market, you may need vehicles that are wheelchair accessible or equipped with other special features.

Recommended Vehicles

• Ford Transit: Known for its spacious interior and reliability.
• Toyota Sienna: Offers wheelchair accessibility and comfortable seating.
• Ram ProMaster: Ideal for larger groups and equipped with various accessibility features.

Vehicle Providers

• MobilityWorks: Specializes in accessible vehicles. MobilityWorks
• AMS Vans: Offers a range of accessible vehicles. AMS Vans

Step 6: Secure Insurance Coverage

Comprehensive insurance coverage is essential for NEMT businesses. Necessary insurance policies include:

• General Liability Insurance: Covers third-party injuries and property damage.
• Commercial Auto Insurance: Covers your vehicles in case of accidents, theft, or damage.
• Professional Liability Insurance: Protects against claims of negligence or inadequate service.
• Worker’s Compensation Insurance: Required if you have employees, covering medical expenses and lost wages for work-related injuries.

Recommended Insurance Providers

• Progressive Commercial: Offers commercial auto insurance tailored for NEMT businesses. Progressive Commercial
• USAA: Provides various insurance products, including those for small businesses. USAA
• Berkshire Hathaway GUARD Insurance Companies: Known for their comprehensive business insurance policies. Berkshire Hathaway GUARD

Step 7: Hire and Train Staff

Hire qualified, compassionate drivers and support staff. Ensure all employees undergo thorough background checks and training, including:

• CPR and First Aid Certification: Essential for handling medical emergencies.
• Customer Service Training: Important for providing a positive experience for your clients.
• Driver Safety Training: Focused on safe driving practices and handling non-emergency medical transport situations.

Recommended Training Programs

• National Safety Council’s Defensive Driving Course: NSC Defensive Driving
• Red Cross First Aid/CPR/AED Training: Red Cross Training

Step 8: Develop a Marketing Strategy

Promote your NEMT business through various marketing channels to attract clients. Effective marketing strategies include:

• Online Presence: Create a professional website with detailed information about your services, pricing, and contact information. Utilize social media platforms to engage with potential clients and share updates.
• Networking: Establish relationships with healthcare providers, social workers, and community organizations. Attend local health fairs and community events to raise awareness of your services.
• Advertising: Use local newspapers, radio, and online advertising to reach your target audience. Consider offering promotions or discounts to attract new clients.

Step 9: Implement Operational Systems

Develop efficient operational systems to manage your NEMT business. Key systems include:

• Scheduling and Dispatching: Ensure efficient booking, scheduling, and dispatching of vehicles.
• Client Management: Maintain accurate records of client information, trip details, and billing.
• Vehicle Maintenance: Regularly inspect and maintain your vehicles to ensure safety and reliability.

Step 10: Monitor and Improve

Continuously monitor your NEMT business’s performance and seek ways to improve. Collect feedback from clients and staff to identify areas for enhancement. Stay informed about industry trends and regulatory changes to ensure compliance and competitiveness.

Starting an NEMT business in Tennessee involves careful planning, adherence to regulations, and a commitment to providing excellent service. By following these steps and leveraging the right resources, you can establish a successful NEMT business that meets the transportation needs of the elderly, disabled, and special needs populations in your community.

Ready to unlock the potential of smarter transportation planning? Book your demo now and explore how our scheduling software can elevate your operations.

ABOUT THE AUTHOR

MIKE B.

Mike is a seasoned transportation consultant and technology advocate. Drawing from years of experience in the transportation industry, Mike bridges the gap between innovative software solutions and practical implementation strategies. His articles focus on the transformative power of software for organizations that deliver transportation options for the elderly, special needs and disabled communities. Outside his writing endeavors, Mike enjoys exploring the landscapes of Costa Rica and advocating for sustainable transportation initiatives.