Exactly like brick & mortar businesses, there are certain payment methods that are considered essential for security and growth. In the NEMT industry, they are Medicaid and Private Pay.
While Medicaid has its advantages, private pay is such a highly profitable and seamless integration that without it, you are almost literally leaving money on the table.
Brokers do 100% of the back-end work of obtaining clients, calculating rates, and managing trips on a high level. This allows providers to stay focused on building a high volume of trips over time.
Brokers often credential a surplus of providers to guarantee their contractual obligation with Medicaid. This leaves many providers without a full book of business, lower than expected rates, and lack of control when facing a longer than expected timeframe for their return on investment.
Providers earn 2-3 times more per trip on average and are in complete control of their own company’s growth and growth rate from day one.
Providers must manage the back-end work of obtaining clients, calculating rates, and managing payments. The administrative aspect of private pay is the main limitation to converting private pay into an incredibly high revenue generating machine.