Starting a Transport Department?

[CalS]

I've been researching starting a transport company in PA for a few years now and I'm probably going to do it after 2015. I've been an EMT for nearly 10 years, with 911 companies, transport companies, volunteer, and paid, you name it. I've spent the last 2 years in the Air Force though (2 more to go.

I'm trying to write a business plan but I'm not even sure where to start. Would anyone have any ideas? How do these companies start up?

 

[medic417]

Contact the state you are interested in and they will have a list of items and paperwork required. Expect to need about 2 million dollars to get going. Many areas limit how many services are allowed. Others bid out so you will need to expect to have difficult time and if you do open expect to take close to 5 years to become profitable if you survive that long.

 

[CalS]

Thanks for the info. I guess I'll email the local EMS councils. Don't worry about survival, it's a tad too early to worry about such things. I'll be fine -_-

 

[NYMedic828]

Thanks for the info. I guess I'll email the local EMS councils. Don't worry about survival, it's a tad too early to worry about such things. I'll be fine -_-

When you have a few million dollars at stake that could keep you in debt for the rest of your days, it's never too early to consider...

It's not easy to start a transport company. Most aren't owned by former EMS people they are owned by businessmen who went to school for business.

God help you if you want to be an ALS agency on top of it. That's a whole different production, but at the same time is where the big money comes from.

 

[CalS]

True, but that's what the business plan is for after all. It's just starting the damn thing. There's so many things to consider: Insurance, rigs, overhead, a station, and on, and on.

ALS is a little much. If I actually do this, and survive BLS, I'd consider ALS. But that's the distant future, if this even pans out to become future.

I've been doing my due research on it. 1 Million does sound like a lot, but you can't fear everything in life. You wont get anything done. I have a lot of support from a lot of different angles.

I definitely appreciate the advice both of you have!

 

[looker]

I would love to know in which area it takes 2 mil to open ambulance company ? I can understand getting 911 contract is hard but there is also IFT. The reality is you can open a company with as little as 75-100k

 

[NYMedic828]

True, but that's what the business plan is for after all. It's just starting the damn thing. There's so many things to consider: Insurance, rigs, overhead, a station, and on, and on.

ALS is a little much. If I actually do this, and survive BLS, I'd consider ALS. But that's the distant future, if this even pans out to become future.

I've been doing my due research on it. 1 Million does sound like a lot, but you can't fear everything in life. You wont get anything done. I have a lot of support from a lot of different angles.

I definitely appreciate the advice both of you have!

1 million won't get you anywhere...

You need to consider

A headquarters
Vehicles
Stock/restock
Various equipment
Uniforms

You need to pay people even when you aren't making money. It isn't their problem that you are broke they want their money.

99% of nursing facilities already have a contracted transport company and probably aren't looking for a new face they never dealt with when their current is just fine.

Getting approved for a 2-3,000,000 dollar loan is not going to happen unless you have a few 100,000 to put down to begin with.


It's an ambitious goal but it isn't something you can just get in to. You need to have the money to make the money in these cases.

I would love to know in which area it takes 2 mil to open ambulance company ? I can understand getting 911 contract is hard but there is also IFT. The reality is you can open a company with as little as 75-100k

Probably be lucky to settle on legal fees for that price. An ambulance company comes with a LOT of legal mumbo jumbo... Lawyers are not cheap.

You need a base of operations.

You need more than one vehicle to be profitable.

 

[looker]

Legal fees? hahahaha you are thinking too much. Yes it's taking a big risk when you don' t have all that done but if you don't have much money there is not much to risk. You start with one ambulance and you contact every bls company and offer them back up service etc. You also contact every nursing home etc, in small city it will be hard but in big one you will get a call in a first week.

 

[CalS]

1 million won't get you anywhere...

You need to consider

A headquarters
Vehicles
Stock/restock
Various equipment
Uniforms

You need to pay people even when you aren't making money. It isn't their problem that you are broke they want their money.

99% of nursing facilities already have a contracted transport company and probably aren't looking for a new face they never dealt with when their current is just fine.

Getting approved for a 2-3,000,000 dollar loan is not going to happen unless you have a few 100,000 to put down to begin with.


It's an ambitious goal but it isn't something you can just get in to. You need to have the money to make the money in these cases.



Probably be lucky to settle on legal fees for that price. An ambulance company comes with a LOT of legal mumbo jumbo... Lawyers are not cheap.

You need a base of operations.

You need more than one vehicle to be profitable.

NYmedic....yes, I'm aware of all this. The issues starting up. The struggles. I knew I'd come to a forum and find all sorts people who just wanted to discourage me, and that's fine. Although I was hoping to find someone who knew the information I needed and could help. I'm not new to business.

With all due respect, I know what I'm getting into, and what I don't my research will tell me. I don't need anyone discouraging me. I am well aware of personal bias in our job field against upstarts.

 

[NYMedic828]

Legal fees? hahahaha you are thinking too much. Yes it's taking a big risk when you don' t have all that done but if you don't have much money there is not much to risk. You start with one ambulance and you contact every bls company and offer them back up service etc. You also contact every nursing home etc, in small city it will be hard but in big one you will get a call in a first week.

You have literally no clue what you are talking about.

Do you think you can just decide to run a transport company? You have to be approved by insurance companies, DOT, DOH, state, county. You think all that is free? You also need a medical director. Good luck finding a doctor willing to put his name out for free so you can start your company.

And you think you can tell them your base of operations is your mothers basement?

I'm not even sure if you are serious or that clueless.

 

[looker]

You have literally no clue what you are talking about.

Do you think you can just decide to run a transport company? You have to be approved by insurance companies, DOT, DOH, state, county. You think all that is free?

And you think you can tell them your base of operations is your mothers basement?

I'm not even sure if you are serious or that clueless.

Thanks for your reply,I own ambulance company in socal. Insurance is not a problem, i can get it all set up in a day. County, dot, doh is all paperwork etc. It takes time but not that much money.

 

[NYMedic828]

NYmedic....yes, I'm aware of all this. The issues starting up. The struggles. I knew I'd come to a forum and find all sorts people who just wanted to discourage me, and that's fine. Although I was hoping to find someone who knew the information I needed and could help. I'm not new to business.

With all due respect, I know what I'm getting into, and what I don't my research will tell me. I don't need anyone discouraging me. I am well aware of personal bias in our job field against upstarts.

If you can pull it off, great.

My intent is not to discourage you but we don't want to see you risk the shirt on your back at a shot in the dark where the odds are heavily weighted against you. We aren't exactly living in good economic times either.

Thanks for your reply,I own ambulance company in socal. Insurance is not a problem, i can get it all set up in a day. County, dot, doh is all paperwork etc. It takes time but not that much money.

Link to your company website?

 

[looker]

One nice thing about posting here is anonymity, one reason why i never id my self. Before I got into ambulance i was in paratransit for many years which is where i got all my experience.

 

[DrParasite]

You have literally no clue what you are talking about.

Do you think you can just decide to run a transport company? You have to be approved by insurance companies, DOT, DOH, state, county. You think all that is free? You also need a medical director. Good luck finding a doctor willing to put his name out for free so you can start your company.

And you think you can tell them your base of operations is your mothers basement?

I'm not even sure if you are serious or that clueless.

looker owns his own transport company. it might be a :censored::censored::censored::censored:ty one to work for, but he does own it. I'd think he actually knows more about creating and running a company than a street paramedic who works for the local government EMS agency.

quite a few companies have been started operating out of a basement, or the owners home. or a rented office with ambulances parked in the parking lot. And most companies don't care where you run out of, as long as you have an address to send the bill to, are properly licensed, and show up when they call them.

Transport companies are a dime a dozen. maybe a nickel a dozen. they are all over the place, always popping up and going out of business. I've been told there isn't much money to be made in them, esp with insurance companies not paying much. If you think you can do it well, make money off it, and follow all the local, regional, and state regulations, go for it.

But don't expect to get rich over night; you will be in debt for years until you get enough contracts and a call volume to remain profitable.

 

[mycrofft]

The "mostly IFT" company I worked for (Late Seventies/Mid Eighties) was interesting. Co-owners were brothers, one was a former small businessman and also an EMT. Partner/brother was a banker with specialty in busness loans/banking. They used his bank for payroll and their loans, on the up and up. The bros formed another company which owned the vehicles and leased them to the ambulance company; I think the deal was the lease company took a loss between low lease and depreciation, and the ambulance company got low leases and deducted the lease cost.

The boss told me (1979) that every time an ambulance left the garage (a former ambulance company, custom-built....sort of spooky) it cost $200 of 1979 dollars in amortized insurance.

We also had four Cadillac limos, the contract Neonatal MICU vehicle (we drove and assisted and maintained the vehicle), and did corpse pickups and transfers for local funeral homes and the county morgue. Cradle to grave...

All part-time except the owner (lived onsite with his wife and kids in an apartment), one former worker promoted to "manager" (lived onsite in one of the sleeping rooms like a little dormitory) and the dispatcher and the clerk who lived in their own homes at night.

Oh, yeah, PS: at the end of my employment before moving, we started warehousing and selling caskets. I dropped one....$3400, he gritted his teeth and said "Don't worry, just be careful". Good first ambulance boss mostly. We did everything but deliver groceries.

 

[BEN52]

If you do not have enough money upfront to cover payroll and expenses for a FULL 9-12 months, do not even consider starting. There is enough money to be made to stay solvent in the end however the revenue streams are inconsistent and take time to establish.