Comprehensive Cost Breakdown for Starting a Profitable NEMT Business – Nemt Startup Coach
Nemt Startup

Comprehensive Cost Breakdown for Starting a Profitable NEMT Business


Hello, team. I’m Willena McGee, your NEMT Startup Coach, and I’m here to discuss healthcare transportation.

In this blog post, I will discuss the cost of starting a Non-Emergency Medical Transportation (NEMT) business. Although this topic is commonly asked, many new entrepreneurs must take it more seriously.

The healthcare transportation industry has an extremely high turnover rate, which is directly correlated with inexperienced entrepreneurs. Constant turnover and increased frivolous claims have caused inflated commercial insurance costs and lower reimbursement rates. Despite these challenges, healthcare transportation can still be lucrative if approached correctly.

The Realities of Starting an NEMT Business

When considering starting a NEMT business, most entrepreneurs look for a venture they believe is easy to start and manage. However, the truth is that the reason for starting a NEMT should be to grow your investment over time rather than seeking a quick return on investment.

I want to caution those who are considering investing in a Non-Emergency Medical Transportation (NEMT) venture. It’s not a business to jump into blindly. Although markets like Florida and Texas have a high demand for NEMT services, the market is also very competitive. This means you must be prepared to enter into the market with competitive equipment and state-of-the-art technology. Contrary to what you may have been told, NEMT is not a broke man’s investment strategy. Those who are considering entering into NEMT should be aware of the seriousness and cost of this investment.

Initial Investment and Mentorship

Let’s now discuss the cost. Whenever you’re doing something new and don’t understand the concepts involved, you need a mentor. I’m not just saying this because I’m a business mentor/consultant. Many people tend to overlook their weaknesses and proceed with their plans, thinking that their struggles will lead to success. While this attitude might be admirable in personal life, it can be detrimental in business.

In the digital age, with so much information available, we can get caught up in thinking we can do it ourselves. Most entrepreneurs unknowingly struggle with understanding the methodology behind starting a venture. Mentors and business consultants grasp the concept of what it takes to start a business. Therefore, you can avoid making critical mistakes and correctly utilize known resources. Mentorship should be your absolute first company investment, not the last.

After selecting a mentor, your initial out-of-pocket costs will include email, phone, and business address. I recommend using my affiliate partners, Alliance Virtual Offices, to assist with virtual phone services and business addresses. Office suites such as Google Workspace or Microsoft 360, domain purchase, QuickBooks or other accounting software, logo and branding costs, and website development are also included in startup costs. I recommend Esthetic Ingenius for your branding and marketing needs. I would estimate your upfront out-of-pocket expenses around $8,000 for the administrative side of your business.

I advise against using personal funds beyond seed money to finance a NEMT venture. Instead, you can secure financing for your startup by presenting a solid business plan and having a credit score of 680 or higher to qualify for a small business loan backed by the SBA or a banking lender. If your score falls below 680, my partners at Coach Financing can offer lending packages up to $200,000.

Vehicle Investment and Operating Costs

If you’re looking to purchase a vehicle for non-emergency medical transportation (NEMT), it’s essential to consider the current market rates.

Here are some options to consider:

– Toyota Sienna Hybrid (BraunAbility Conversion)

Price: This vehicle starts at around $43,695 and is available in higher trims that can reach $67,100.

Fuel Type: Hybrid


MPG: 36 city/highway

– Chrysler Pacifica (BraunAbility Conversion)

Price: Depending on the model and conversion package, the price ranges from $45,000 to over $67,000.

Fuel Type: Gasoline


MPG: The specifics of the MPG should be confirmed based on the model year and conversion.

– Honda Odyssey (VMI Conversion)

Price: The price varies from $35,000 to over $60,000, depending on the chosen conversion package.

Fuel Type: Gasoline


MPG: The specific MPG should be confirmed according to the base model and type of conversion.

– Ford Transit (Various Conversions)

Price: The base price for the 2024 Ford Transit starts at $59,937, with prices varying based on trim and options. Wheelchair-accessible conversions can alter final pricing.


Fuel Type: Gasoline

MPG: The MPG details vary based on the specific model and conversion but typically feature moderate fuel efficiency for a vehicle of its size and capability.

Another important aspect to consider is fuel cost. Currently, the national average for fuel is $3.63/gallon. This means that filling up a 20-gallon tank daily will cost an average of $72.60, resulting in an overall yearly fuel budget of $26,499.00.

Insurance Costs for NEMT

When starting a Non-Emergency Medical Transportation (NEMT) business, it’s vital to consider the annual insurance costs. These costs can vary based on factors such as the number of vehicles and drivers, vehicle models, geographic location, and driver records.

On average, quarterly NEMT insurance costs can range up to as follows:

Rural areas: Approximately $3,500 per vehicle

Suburban locations: Around $4,500 per vehicle

Urban areas: Typically $5,500 per vehicle

Major metropolitan regions, Such as New York City or Washington D.C., can see costs averaging at $7,500 per vehicle

Please note that these estimates are for insurance policies with a $1,000,000 liability limit. The price variation is influenced by the risk factors associated with different areas and the specifics of the vehicles and drivers involved in your NEMT fleet. Therefore, the actual costs may be higher or lower in some cases.

Understanding these costs is vital for budgeting and financial planning as you set up your NEMT business. Investing in comprehensive insurance is necessary for regulatory compliance and protecting your company and its assets, especially when transporting vulnerable individuals.

For more detailed insights on NEMT insurance costs, you can explore the discussions and resources on websites like These websites offer in-depth analyses of NEMT insurance costs and strategies aligned with your bottom line.

The Importance of Technology in NEMT

Another significant aspect to consider in NEMT is technology. It’s crucial to maintain accurate and dependable dispatching software. I recommend contacting Bambi, a leading force in AI-powered NEMT dispatching and scheduling software, at

Hiring and Training Drivers

Finally, let’s discuss the last significant expense for the NEMT business: hiring a driver. Please estimate driver training at approximately $500, including mandatory driving requirements and possible hours worked during training. If you pay your driver $20.00 per hour, industry standards estimate that a full-time employee will earn a yearly salary of $41,600.

Conclusion and Final Thoughts

Team, if you’re thinking of starting a healthcare transportation venture, it’s essential to consider the numbers carefully. If you don’t have the necessary upfront investment, I encourage you to wait until you do. The need for NEMT is only increasing, but poorly equipped transportation providers can do more harm than good.

Our community deserves providers dedicated to providing long-term service and care to the most vulnerable members of our community rather than just being in it for quick money. Delivering top-notch service will reward financial growth over time. This blog post helps you better understand the costs involved in starting this business. If you have questions, please schedule a one-on-one consultation at Be blessed!

Set your categories menu in Header builder -> Mobile -> Mobile menu element -> Show/Hide -> Choose menu
Shopping cart
We use Cookies to keep track of your current shopping session to personalise your experience and so that you may retrieve your shopping basket at any time; if you do not accept Cookies, you will be unable to use this Website for shopping purposes, only for browsing and research. If you'd like to opt out of cookies, please go to the please make us aware or opens in a new window - please note that we're not responsible for the content of external websites.
Start typing to see posts you are looking for.
Shopping cart0
There are no products in the cart!
Continue shopping
0 items Cart
My account