NEMT Experts Podcast Episode 3: Four Creative Ways to Boost Profit
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/UUfPQZ1AItk
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Podcast Show Notes:
Key Takeaways
- Diversify your client base: Don't depend on a single source of trips (broker or facility). Build relationships with multiple partners to spread risk and gain volume flexibility.
- Understand & communicate your costs: Know your operational expenses and explain them to facilities to justify your pricing. Transparency builds trust and can win business.
- Be honest and upfront: Don't overpromise on your capabilities. Set realistic expectations with facilities, and consider a phased takeover of their transport if your current capacity is limited.
- Research and development is key: Continuously look for new software and systems to improve efficiency. Invest time in finding solutions that can save you money and time in the long run.
- Network to find the best solutions: Join organizations like NEMTAC, attend conferences, and even consult with brokers to learn what systems and strategies other successful NEMT companies are using.
- Use multiple platforms to find drivers: Leverage Indeed, Craigslist, and crucially, referrals from your own top-performing drivers.
- Invest in candidate filtering: Be clear about NEMT's specific requirements during the recruiting process upfront to avoid wasting time with unqualified candidates.
- Prioritize safe drivers: Focus on recruiting individuals with good driving records to set your company up for lower insurance rates in the future.
- Analyze insurance needs carefully: Work with your agent to identify areas for cost savings (e.g., potentially dropping comprehensive/collision coverage). Consider strategic decisions about the locations you serve to impact your insurance costs positively.
Important Quotes
- "Everyone's human...figure out what their problems are, and if you can realistically do anything to solve them." -Courtney on approaching facilities
- "If you're a newer company...start off by hiring drivers that are well trained, and are safe drivers, and maintain a really good driving history for your company, set yourself up for future success." -Courtney on insurance costs
- "If you're going to a lot of the smaller towns, [your insurance cost is] going to be less expensive." -Courtney on strategic location decisions
Here are some time-stamped show notes:
00:00 Introduction
00:50 Managing brokers & private pay
06:15 Finding new tech systems
11:04 Finding drivers
16:20 Insurance
21:45 Ending
