Private Pay NEMT Secrets Revealed – Part 2/2! | NEMT Experts Podcast Episode 75
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Unlock the secrets to a thriving private pay NEMT business with Part 2 of our exclusive interview with Bruce Troll of Gentle Heart Transportation!In this episode of the NEMT Experts Podcast, Bruce reveals the hard-won lessons and practical strategies he used to build his successful NEMT company. If you're looking to start or scale your private pay services, this is a must-watch. Bruce dives deep into the nitty-gritty of marketing, pricing, and securing trips, offering invaluable insights that can save you time and money.
Top 3 Takeaways
- Price Your Services Strategically: Don't be afraid to charge what you're worth. Start by researching competitors, but incrementally raise your prices until you meet slight resistance. As Bruce was told, "if somebody doesn't complain about the price, you're not charging enough." This higher price must be justified by delivering high "perceived value" through cleanliness, professionalism, and excellent service.
- Prepare to Manage Your Cash Flow: When working with facilities and brokers, you will not be paid immediately. You must have a line of credit or cash reserves to cover your operating expenses (payroll, fuel, etc.) while you wait for your accounts receivable to be paid. Demanding cash upfront from facilities is not a viable option for growth.
- Build a "Three-Legged Stool" of Revenue: Do not rely on a single source of income. A stable NEMT business is built on three pillars: private-pay clients, contracts with facilities/hospitals, and work from brokers. Brokers are especially useful for filling in the "dead times" in your schedule when your higher-paying clients are not booked.
Top 3 Quotes from Bruce Troll
- "I was told by a very smart guy that if somebody doesn't complain about the price, you're not charging enough."
- "Your accounts receivable will grow very quickly from zero to 5,000 to 10,000 very, very fast. So you have to be able to float that in order to grow. Because if you say to the facility, well, I need to be paid up front, they're not, they're not made to do that."
- "You have to create multiple streams of income... private is one leg, right? And then you have facilities slash hospitals is your second leg, and then your third leg of your stool is gonna be brokers. So... if one or two of 'em are a little slow, the other one can pick up and vice versa."
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