Part 1: Research the Arkansas NEMT Market
Prior to launching a new NEMT business in Arkansas, it's important to conduct thorough market research. This step ensures you avoid entering an oversaturated market and helps identify gaps in existing NEMT services. For example, you might discover that while there are NEMT providers in your particular area, they only serve Adult Day Care centers. This gap presents an opportunity to expand your services to rehabilitation centers, hospitals and other healthcare facilities.
In this section, we'll guide you on how to get started and where to focus your market research efforts in Arkansas.
1 | Identify existing NEMT providers in your area In Arkansas, there are several NEMT providers operating under contracts with the state or through private arrangements. These providers work together to ensure that Medicaid beneficiaries and other eligible individuals in Arkansas have access to necessary medical transportation services. Some of the most notable NEMT providers and brokers include:
Modivcare (formally, LogistiCare Solutions, LLC) : Modivcare is a major NEMT broker that manages transportation services for Medicaid beneficiaries in many states, including Arkansas.Verida (formally, Southeastrans) : This company is also a significant player in the NEMT industry, providing transportation services for Medicaid recipients and working with local subcontractors to deliver services.Arkansas Transit Association (ATA) : ATA includes various local transit agencies and NEMT providers across the state, offering transportation solutions tailored to the needs of Arkansas residents.Uber Health : Offers HIPAA-enabled NEMT services. Healthcare providers can request and monitor patient rides through their platform.Your favorite search engine. Of course, one can always perform their own search with the keywords, “NEMT providers in Arkansas” or get more granular with your search by putting in specific municipalities (i.e. “NEMT companies in Little Rock”).
2 | Assess the demand for NEMT services
Assess whether there is sufficient demand for your NEMT business in your local Arkansas area. Consider whether you will be crossing multiple jurisdictional lines or operating within a limited radius. To make this determination, research local hospitals, health and wellness facilities and other establishments such as:
Adult Day Care (ADC) Centers. As of today, there are over 38 adult day care centers in Arkansas. These centers provide crucial support services for the elderly and individuals with disabilities, offering a safe and engaging environment during the day while giving caregivers a much-needed respite (Source: AgingCare and CareArkansas ).Dialysis Clinics. As of 2024, there are 116 dialysis facilities in Arkansas. These facilities are spread across various cities and provide essential services to patients requiring regular dialysis treatments (Source: Healthcare4PPL ).Physical Therapy Centers. There are numerous physical therapy centers across Arkansas, providing a range of rehabilitation services to patients. It’s tricky to find an exact number. One way to find this out would be by reaching out to the Arkansas Department of Human Services (DHS). Hospitals: As of 2022, Arkansas has a total of 112 hospitals. These hospitals include various types such as general acute care hospitals, critical access hospitals, specialty hospitals and psychiatric hospitals. For the most accurate and current count, you may want to verify with the DHS or other authoritative sources. Some of the major hospital systems are CHI St. Vincent Health System , Baptist Health and Mercy Health. Rehabilitation centers. We don’t have an up-to-date number here either, but many hospitals have partnering rehab centers so it’s always best to reach out to them. You can also reach out to these biggest players in the state or Arkansas: HealthSouth Rehabilitation Hospital of Fort Smith, Baptist Health Rehabilitation Institute and HealthSouth Rehabilitation Hospital of Jonesboro.Nursing homes and assisted living facilities. According to the Arkansas DHS, there are approximately 230 nursing homes in Arkansas. Outpatient care centers. Just like rehab facilities, there is a large amount of outpatient care centers throughout the state — talk to your local hospitals for more information on these estimates.3 | Decide on a target market After researching NEMT market opportunities and assessing demand, identify the demographic that makes the most sense to target, such as seniors, individuals with disabilities or a broader patient population. Specializing in a specific group will help you tailor your services and marketing strategies effectively. The population of Arkansas is estimated to be around 3.02 million in 2024 (Source: World Population Review and Neilsberg ). For a relatively large state, this population size is considered moderate.
4 | Choose a specific NEMT service (or offer them all!) NEMT providers offer ambulatory, stretcher and wheelchair services. It's best to start with one service based on market needs and gaps, then expand. This ensures sustainability. Observe competitors and either differentiate or find a niche needing support. Begin with a well-equipped fleet tailored to your chosen service, whether it's for ADCs or physical therapy centers.
5 | Understand the different Medicaid delivery models
In Arkansas, the Medicaid program utilizes one single main regional broker for NEMT. The Arkansas Department of Human Services (DHS) contracts this broker which is Modivcare (formally known as Logisticare Solutions, LLC) to manage and coordinate NEMT services for Medicaid beneficiaries. Modivcare then contracts with various transportation providers (including ambulatory and wheelchair-accessible vans) to provide these NEMT services to the riders in need.
This regional broker, Modivcare, may also work with qualified subcontractors in their respective areas, acting as gatekeepers who process transportation requests and address complaints to maintain service quality. It’s important to note that the DMS conducts regular reviews of these brokers to ensure high-quality service. There are other smaller regional brokers (beyond the Modivcare) acting in support alongside and include a mix of for-profit national companies and Arkansas-based human services brokers, such as development councils, area agencies on aging and community action agencies.
Here are some fast AR facts according to report State-by-State Profiles for Examining the Effects of Non-Emergency MEdical Transportation Brokerages on Transportation Coordination :
NEMT Model is a Regional Broker The Operating Authority is Federal SEction 1915 (b) Freedom-of-Choice Waiver NEMT expense is classified as a “Medical Expense” (Source: Kaiser Family Foundation) 19% live below poverty (US Census 2015 5-Year Estimates) 40% live in Urbanized Areas (US Census 2010) $33.9 Million is the estimated annual NEMT 2013 expense (Source 2014 National NEMT Survey) 1,088,117 is the 2013 estimated number of annual NEMT trips 6 | Getting Paid
It’s good to get paid, eh? NEMT fee schedules in Arkansas follow the guidelines and rates set by the Arkansas Medicaid program . Here's a quick overview:
NEMT services for Medicaid recipients are reimbursed based on the established fee schedule, which includes mileage rates for various vehicle types (i.e. wheelchair vans, stretcher vans) and rates for waiting time. Providers must adhere to these rates when billing Medicaid.
Arkansas Medicaid operates under a managed care model, where some recipients are enrolled in managed care organizations (MCOs). MCOs have their own contracts and fee schedules with NEMT providers, who must comply with these rates and guidelines when serving their members.
To receive payment, NEMT providers submit claims for services rendered to Medicaid recipients. Claims are processed and reimbursed according to the fee schedule rates and any additional guidelines from Arkansas Medicaid or the MCOs.
Great job navigating through this information-packed first part! Now, let's move on to Part 2, where we'll focus on developing a business plan. Click here to continue, or you can skip ahead to other sections in the series by visiting the table of contents.
Comments
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.