NEMT Experts Podcast Episode 2: The 16 Steps to Launch NEMT Operations Bambi CEO Nirav Chheda interviews NEMT expert Courtney Muchugu on the creative ways for an NEMT business to boost revenue and reduce costs. Courtney has been on a NEMTAC advisory board, operated a 40-vehicle NEMT company in Massachusetts for 10 years, and consults for NEMT companies.
See the full interview at: https://youtu.be/DU3VQBZSlUw
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Podcast Show Notes: Key Takeaways
NEMT is about people: Begin by fully understanding the commitment and service-oriented mindset needed to succeed in transporting patients. "You're dealing with people...all different kinds of backgrounds..."Market research is key: Know the demand in your area (elderly, disabled populations, etc.) and the existing competition. This dictates your strategy for finding trips and building volume.Regulation varies by state: Reach out to your state Medicaid office, and any applicable brokers, to fully grasp requirements for everything from insurance to driver training.Align expectations of costs: Be prepared for significant investments in vehicles, insurance, software, compliance, and most importantly, labor costs.Seek legal expertise: Consult a business attorney on the right structure for your company (LLC, sole proprietorship, etc.) based on your short-and-long-term goals.Insurance is your shield: Understand what your state/broker requires and have sufficient coverage. "That is the buffer between you and your business going out."Authority requirements vary: Know if your business will operate within your state only or across state lines. This affects whether you need USDOT numbers, an interstate operating authority, etc.Understand broker standards: Thoroughly read broker contracts, paying attention to performance metrics, wait times, reporting standards, and any other unique requirements.Invest in your drivers: Seek out compassionate people truly willing to serve a vulnerable population. Run required background checks, have clear upfront conversations, and offer top-notch training. "Doing as much as you can on the front end...saves you time on the back end."Dispatch software is essential: Efficiently assign trips, plan routes, track vehicles, and increase driver satisfaction. "Having software...is by far the greatest thing since NEMT became an available service."Billing = Cashflow: Have dedicated personnel to quickly, transparently, and accurately invoice your brokers/Medicaid to keep your business afloat.Stay compliant, stay in business: Check in regularly on state/broker/Medicaid requirements as things often change.Don't skimp on taxes: Consult a tax pro to understand your obligations, and potentially have a second set of eyes review your filings as laws evolve.Important Quotes
"When you're owning and running an NEMT business, you're dealing with people, people, all different kinds of backgrounds, ethnicities, social determinants, health determinants, all those things." -Ray on the service aspect of NEMT "The number one thing that catches people up...is understanding what each state or each region's regulatory requirements are." -Ray on state-by-state variation "Insurance is probably the second highest expense that a company will have outside of labor costs."-Ray emphasizing the substantial investment "I cannot stress how important [dispatch software] is." -Ray "Getting paid is what keeps the business going" -Ray on the importance of accurate, timely billing practices Here are some time-stamped show notes: 00:00 Introduction
1:25 Deciding to open an NEMT business
2:30 Market Research
5:58 State Regulation and Requirements
8:51 Aligning Expectations of Cost
12:33 Creating Business Structure
13:59 Obtaining Insurance
16:07 USDOT, MC Numbers, and Authority Requirements
18:02 Registering with Medicaid Office/Broker
20:12 Regulatory/Compliance Requirements
21:51 Hiring Drivers/Staff
24:40 Training Staff
25:37 Dispatching Software
28:00 Accounting Personnel/Software
29:43 Billing/Submitting Claims
30:58 State Business Authority Requirements
32:01 Taxes
33:37 Ending
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