How to Start an NEMT Business in Alaska: A "Bambi Knows Best" State-By-State Series Part 1: Research the Alaska NEMT Market Alaska’s the biggest state in the US. Yes, it’s true: 2.5 Texas states could fit into one Alaska! Anyway, The Last Frontier’s massive and varied terrain, coupled with its close-knit small and often remote communities, presents a unique opportunity for launching your NEMT business.
And although air travel is more costly than road transport, it is often the only viable option for ensuring access to essential medical services in these remote areas. Consequently, Alaska's NEMT program allocates substantial funds to air transportation to overcome the unique logistical challenges of the state's geography.
1 | Identify Existing NEMT Providers in Alaska Understanding the existing NEMT services in Alaska will help you discover opportunities and avoid potential competition. For one, Alaska Medicaid oversees and funds NEMT services for Medicaid recipients throughout the state. They establish policies and procedures that align with federal and state requirements. Key provider players include:
Modivcare Alaska Medical Transport : They provide round-the-clock emergency and NEMT services, ensuring peace of mind for their clients.Public Transportation Providers People Mover in Anchorage and the Fairbanks North Star Borough Transit , offer NEMT options in their respective areas.Uber Health Consult local directories and online resources: to identify additional NEMT companies in key cities like Anchorage, Fairbanks and Juneau.
2 | Assess the Demand for NEMT Services To understand the demand for NEMT services, it’s a good idea to focus on major healthcare facilities and the varying community needs in Alaska:
Adult Day Care Centers : Alaska has around 50 licensed adult day care centers, though this number can shift a bit as new centers open and others close. For the latest details, it’s best to check with the Alaska Department of Health and Social Services or the Alaska Department of Health for updated information.Dialysis Clinics : Alaska has several clinics across the state, primarily operated by large healthcare providers like Fresenius Kidney Care, DaVita Dialysis, The Alaska Native Medical Center (ANMC) and Providence Alaska Medical Center .Physical Therapy Centers : Numerous PT centers are peppered across the bigger cities and towns of Alaska offering services. The Alaska Physical Therapy Association can provide the best up-to-date details.Hospitals : Alaska has several hospitals, including the big Alaska Native Medical Center in Anchorage and Providence Alaska Medical Center as listed above. Nursing Homes and Assisted Living : Various facilities provide this kind of long-term elderly care. Consult the Alaska DHSS for the most current data on this front.Outpatient Care Centers : Vital for the state’s healthcare network, these centers offer various services. Contact local healthcare providers and hospitals as they’re likely partnered up with these facilities to support your NEMT patient rider demand.3 | Decide on a Target Market After evaluating demand, identify your target demographic. Whether focusing on the elderly, individuals with disabilities or a patient base that spans a bit more broad, aligning your services with these needs will enhance your business effectiveness, curb appeal and keep your marketing costs down.
4 | Choose Specific NEMT Services Determine which NEMT services are in high demand. Specialize in areas such as senior transportation, medical appointments or specialized care facilities to address the particular local needs to determine your line or niche of NEMT business.
5 | Understand Medicaid Delivery Models in Alaska Alaska’s Medicaid program stands out because most of the state’s NEMT spending goes toward air travel for medical services. The Alaska Department of Health and Social Services (DHSS) oversees the Medicaid program and has federal approval for both a Section 1915(b) Freedom-of-Choice Waiver and a 1902(a)(70) State Plan Amendment to run a transportation brokerage program. NEMT costs are reimbursed as administrative expenses at a 50 percent federal matching rate, allowing DHSS more flexibility compared to classifying them as medical expenses.Requests for NEMT are handled by a statewide call center managed by an administrative services contractor chosen by DHSS. Travel arrangements are made with approved air carriers, and payments are issued directly by the state on a fee-for-service basis. According to the NEMT operations manager at DHSS, nearly 60 percent of eligible Medicaid beneficiaries use NEMT services to attend medical appointments.
Quick NEMT Alaska Facts:
NEMT Model : Statewide BrokerOperating Authority : A blend of 1902(a)(70) State Plan Amendment and Federal Section 1915(b) Freedom-of-Choice WaiverNEMT Expense Classification : Administrative ExpensePoverty Rate : Approximately 10% live below the poverty line (Source: U.S. Census Bureau).Urban Population : About 44% live in urbanized areas (Source: U.S. Census Bureau).Estimated Annual NEMT Expense : $35 MillionEstimated Number of Annual NEMT Trips : Around 100,000
6 | Getting Paid Alaska Medicaid compensates transportation providers primarily based on fee-for-service (FFS) arrangements and administrative service agreements. Here’s how payment methods generally work:
Fee-for-Service (FFS) : Providers submit claims directly to Medicaid for reimbursement of services rendered.Administrative Contractors : The Alaska Department of Health and Social Services (DHSS) hires administrative contractors to manage NEMT services, including handling payment processes and coordinating travel with approved carriers.Alaska does not use Managed Care Organizations (MCOs) for NEMT services widely. Instead, the focus is on administrative contractors managing these services. Providers must adhere to Medicaid billing guidelines when submitting claims.
For specific details, it’s advisable to consult the Alaska Department of Health and Social Services or the designated administrative contractors.Prepare to navigate Alaska’s NEMT landscape with precision and insight. Stay tuned for Part 2 , where we’ll guide you through developing a business plan tailored to Alaska’s unique regulations and market conditions. Continue with us, or jump ahead to explore more in our series to pave your path to success!
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