How to Start an NEMT Business in Tennessee: A "Bambi Knows Best" State-by-State Series Part 1: Research the Tennessee NEMT Market Welcome to Part One of our Tennessee edition! Here we’re diving (or driving) right into the Volunteer State, where the rolling hills are alive with opportunity and helping your neighbors is their way of life. If you’ve got a heart for service and a head for business, starting a non-emergency medical transportation (NEMT) business here might just be your calling. So grab some of that good ol’ sweet tea and let’s get to it!
1 | Understand Tennessee’s NEMT Landscape Before you step on full throttle, you’ve got to know the lay of this long state’s land. Tennessee’s Medicaid program, TennCare, oversees non-emergency medical transportation services to help folks access the care they need. The state uses contracted brokers to manage Medicaid NEMT services, making sure trips meet all federal and state guidelines.
Here are the big players you’ll be rubbing shoulders with:
Medicaid Transportation Brokers: TennCare contracts with brokers like MTM and Modivcare to coordinate NEMT trips for eligible residents.Independent Providers: Local operators often serve smaller towns and rural routes, offering a personal touch.Healthcare Facilities: Major systems like Vanderbilt University Medical Center and Ascension Saint Thomas often rely on NEMT providers to assist patients.2 | Assess the Demand for NEMT Services in Tennessee Tennessee’s unique mix of bustling cities and rural communities makes for plenty of need for reliable medical transportation. With an aging population and large areas without public transit, NEMT providers can fill these oh-so essential service gaps.Key demand drivers include:
Rural Access: Tennessee’s small towns and mountain communities often lack reliable transportation options, making NEMT services critical.Seniors: As Tennessee’s population continues to age, senior-focused transportation services are in an absolute high demand.Healthcare Hubs: Cities like Nashville, Memphis and Knoxville draw patients from across the region, creating steady demand for NEMT providers.Dialysis and Specialty Clinics: Regular, recurring trips for treatments like dialysis and/or chemotherapy offer consistent business opportunities.3 | Identify Your Target Audience Tennessee’s diverse population offers plenty of opportunities to specialize your services. Potential client groups include:
Rural Residents: Providing dependable transportation to underserved areas can set your business apart.Medicaid Recipients: TennCare beneficiaries represent a large portion of NEMT users.Seniors and Disabled Individuals: Focus on accessibility with vehicles equipped for wheelchairs and mobility aids.4 | Choose Your Niche In Tennessee, carving out a niche can help your business stand out. Consider focusing on:
Mountain Routes: Cater to communities tucked away in the hills and valleys of eastern Tennessee — you know those beautiful Blue Ridge Mountains that a cute little Bambi deer would be keen to frolick in?Urban Specialization: Provide efficient service in cities like Chattanooga or Nashville with quick turnaround times.Accessibility Services: Offer specialized vehicles (i.e. those with ramps, etc.) and trained drivers for clients with mobility challenges.5 | Navigate Tennessee’s Medicaid NEMT Model Tennessee’s Medicaid NEMT system operates under a managed care model. TennCare contracts with brokers to oversee trip scheduling, compliance and payments. Here’s what you need to know:
NEMT Model : Tennessee uses a managed care model for its Medicaid NEMT services, which is overseen by contracted brokers. These brokers manage the coordination, scheduling and reimbursement for eligible transportation services. Operating Authority : Medicaid NEMT services in Tennessee are administered through the state's TennCare program, which oversees the Medicaid services for the state. TennCare beneficiaries who require transportation to healthcare appointments are eligible for these services.NEMT Expense Classification : In Tennessee, NEMT is recognized as a covered medical service under Medicaid, ensuring that eligible individuals have access to necessary healthcare appointments without being hindered by transportation barriers.Poverty Rate : Approximately 14.3% of Tennessee's residents live below the poverty line, a rate slightly higher than the national average.% of Tennessee’s population resides in urban areas, such as Nashville and Memphis, though much of the state is still rural. TEstimated Annual NEMT Expense : Specific expenditure figures for Tennessee’s NEMT program are not readily available, but the managed care model typically results in more predictable costs and emphasizes cost-efficiency for providers and beneficiaries. We advise you to reach out to TennCare on your own behalf.Estimated Annual NEMT Trips : While exact data on trip volume is not always publicly accessible, Tennessee’s combination of urban centers and rural areas suggests significant demand for NEMT services. This demand is especially high in rural regions, where transportation options are limited.6 | Set Your Payment Strategy To keep your business rolling smoothly, establish a solid payment approach. Here’s how:
Partner with Brokers: Build strong relationships with TennCare brokers to secure steady work. It might even pay to support multiple brokers, as long as all parties are open to that.Offer Private Pay Options: Attract clients who don’t qualify for Medicaid with flexible payment plans.Stay Organized: Detailed trip logs and timely invoicing are essential to getting paid on time.Tennessee’s rich tradition of giving back makes it a very honest and heart-felt place to start an NEMT business. By understanding the local market and tailoring your services to meet community needs, you’ll be embodying the spirit of the Volunteer State in the best possible way.Stay tuned for Part 2 , where we’ll help you build a business plan as solid as Tennessee’s Rocky Top. Ready to hit the ground and running like Bambi? Let’s go! Or head back to the table of contents to find the info you need.
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