The Medical Transportation Business is Experiencing Change and You Need to Know About It!
Especially with Obamacare becoming the “law of the land,” coupled with the already rapidly growing medical industry and the booming elderly population, the medical transportation and home care industries are changing.
With the release of my home care manual, How to Build a Million Dollar Home Care Agency, I continue to receive a flood of emails inquiring into such changes.
To put things into perspective, let me start by sharing what are just a few absolute facts.
First, the economy stinks! And more so, no one can accurately predict when it will reverse and hardly anyone can agree on what variables will stimulate such a reversal.
Second, taxes, gas prices, food, and inflation are all on the rise.
Third, the elderly population continues to grow in size and demand.
Fourth, the demand for hospitals and facilities continues to increase across the US and globally.
Fifth, there are major shifts occurring in the way patients receive medical care and treatment at hospitals, nursing facilities, and at home.
Sixth, there are major shifts occurring in the way transportation providers receive compensation from Medicaid, brokers, waivers, and more.
Seventh, brokers are being used more and more to manage the care and transportation of Medicaid recipients.
Eighth, business as usual is no longer feasible – change is here – bottom line!
Ninth, despite all of these facts, the doom and gloom with increased taxes and inflation, and all of such change, there is more money to be made by visionary, like-minded entrepreneurs!
Let’s drill down and look at some these facts in a little greater detail to discuss the validity of these facts and how they are related.
As we discussed, the economy stinks. I know, some people think that it is moving in the right direction. But unfortunately, economic improvements are more regionally based versus our entire economy as a whole. And even then, all such improvements and movements in the economy are negligible at best. And if you are one of the few that really believe that the economy is flying high and heading in the right direction, ask yourself how long this will continue as gas prices, taxes, and inflation continue to rise.
As fuel prices increase, so does everything else. It’s just the simple laws of economics. When gas prices increase so does the cost of food, clothing, general services, and inflation in general/
So you might be asking, “Joel, if gas prices are continuing to increase, why would I want to start a medical transportation business?” Because it’s all relative! Gas prices are increasing yet so is the demand for transportation. Trust me, if the demand for transportation and medical services wasn’t increasing, we’d have NO opportunity!
The reason why demand for transportation continues to increase is because of the continued growth in elderly population coupled with the dramatic changes in health care. Hospitals and nursing facilities no longer operate the way they once did – technology coupled with cost and the growing elderly population is forcing change and evolution and allowing people to receive care and remain at home.
More and more patients are experiencing ambulatory procedures. With dramatic reduction in the duration of hospital stays, patients require more transportation to hospitals, doctor offices, dialysis centers and the like – regardless of the poor economy and increases in fuel costs.
Further, it is technology, cost of care, and the evolution of health care in general that is allowing more and more senior adults to remain in their homes versus going to long-term care facilities – all of which contribute to the demand for more medical transportation.
But how about that GIANT Guerilla sitting in the middle of the room that providers rarely like to deal with? You know – BROKERS!
Now, so you don’t think that the sky is falling, let me preface everything by reiterating that brokers only influence your Medicaid business and NOT your Private-Pay, VA, Worker’s Comp, contracted, or other forms of business. But because of increased budget concerns, more and more Departments of Social Services are transitioning to broker systems to manage the transportation needs of Medicaid Recipients.
But here is the problem. Demand for transportation is increasing yet some brokers are trying to reduce rates of reimbursement. So what gives?
Well, if you don’t know how to properly leverage brokers, brokers will leverage YOU! And when brokers leverage you, you become just that – BROKE-RRRR!
So what’s the morale of the story? What’s the purpose of all of this and how can you make sense of all of this?
Well, I used to often reference the old saying “If you always do what you always did, you’ll always get what you always got.” But this is NO longer true! Rather, in today’s rapidly changing environment, policies, and technology, if you always do what you always did, you’re going to get even less!!
The bottom line is this. We can no longer do business as we use to! Business as usual is dead! You’ve probably heard of “generational change;” that change occurs every 20-40 years. Not anymore! Technology is leading evolutional change in policies and practices within every 4 years!
This means that you HAVE TO CHANGE AND MODIFY YOUR BUSINESS MODELS!!
Bottom line, change is here whether we like it or not. I know most people don’t like change. But trust me, change IS a good thing! Ask any successful entrepreneur and they will be the first to tell you that change is opportunity. And it IS!
In California, for example, where MediCal reimburses for the transportation of Medicaid recipients, they are reducing their rates of reimbursement. Why – because they’re going broke AND because they are ushering in the call for brokers. And yes, this IS going to change the way California transportation providers do business – whether they like it or not!
Our opportunities are literally growing yet our entire environment and industry is changing which, if we don’t change and evolve, many entrepreneurs will suffer. They will get even less. And guess what. What you don’t know will hurt you! I know there are many business owners that would prefer to stay stuck behind their desk, head in the clouds, oblivious to change, point fingers, criticize, and hate.
But you fat cats that don’t want to evolve and modify your business models, it’s only a matter of time before you’re done! Just wait and see what these brokers have in store for you. Just wait and see what new, motivated entrepreneurs, entrepreneurs with a vision have in store for you. Trust me I don’t say these things to scare anyone. But hey, the facts are the facts. If I don’t tell you the truth in what is literally happening then I’m not properly serving anyone!
But for you visionary entrepreneurs that look at change as opportunity, our future IS bright! Trust me it’s there! We have so much in front of us because our demand is not only growing, it’s proverbially being handed to us on a silver platter.
Take my new manual for example. The development and launch of my new manual, How to Build a Million Dollar Home Care Agency, is no coincidence. Rather, this resource has literally more than two years in the making was the result of working with an untold number of business owners over many years. I’ve been preparing and actually developing this resource for a very long time. And yes, my manual is literally a one of kind resource.
But ultimately, my home care manual is only ONE element and component of what is a new business model that will help you to ride the wave of the new changes that are upon us. In How to Build a Million Dollar Home Care Agency you’re doing to discover how roughly 50% of the transportation providers I continue to work with are diversified into the home care industry. Why – because it’s growing! It’s profitable! And it’s incredibly synergistic!
More and more motivated entrepreneurs are leveraging their NEMT businesses to build prosperous non-medical home care agencies. Again, why – because they are rapidly growing in popularity and profitability. Further, by leveraging an already existing and successful NEMT business it makes diversifying even easier and more feasible.
Whether you choose to diversify your business or not, one thing is for sure. The way we did business 10 years ago is definitely no longer feasible. And honestly, this is more good than bad when you consider the diverse opportunities that are emerging with improved technology, resources, and accessibility. So if you’re serious about creating multiple streams of profitable revenue, then it’s time for many of you to consider diversifying your NEMT business.
To learn more about how to diversify your medical transportation industry, CLICK HERE.