How Outsourcing Your Transportation Needs to the Professionals Can Save You Money

transportation(1)Outsourcing has become a way to increase an organization’s flexibility to meet rapidly changing market conditions, focus on core competencies and develop competitive advantage. Outsourcing is increasing rapidly. Businesses are not just outsourcing materials, but also many business functions are being outsourced. Outsourcing can enable companies to better leverage the expertise of the supplier’s expertise, increases in innovation, and as a result lower staffing levels, reduce costs and increase flexibility.

As the nation’s economy slowly recovers, government and private healthcare agencies are trying new ways to save money without sacrificing customer care and service.

One way healthcare organizations can save money is to outsource their non-emergency medical transportation services to professional NEMT businesses that can provide these services better, faster, and cheaper.

For your consideration, here is an estimate of expenses for providing NEMT services in-house compared to outsourcing them.

In-house Transportation Expenses:

These estimates are based on self-performing transportation services for one full-size wheelchair van.

  • Cost of one full-size wheelchair van, equipped with the necessary equipment and technology: Used: $20,000; New: $45,000; Avg. Payment: $650/month
  • Annual insurance premiums: $3,000-$5,000 (depending on market)
  • Annual salary and compensation for one part time driver: $18,000+
  • Annual salary and compensation for one transportation director or dispatcher: P/T: $12,000; F/T: $40,000
  • Driver training and certifications: $200 per driver
  • Driver background check: $30 per driver
  • Annual fuel costs (based on a 5 day week): $18,000
  • Annual vehicle maintenance: $2,600

Total In-House Monthly Expense is about $5,050.

In-house Transportation Cost per Trip:

10 Trips = $455; 20 Trips = $227; 30 Trips = $151; 40 Trips = $113; 50 Trips = $91; 100 Trips = $45.52

Outsourced Transportation Costs:

Sedan Service: Base fee per trip: $15 + $1.60 (avg.) cost per mile over base fee.

Wheelchair Service: Base fee per trip: $25 + $2.50 (avg.) cost per mile over base fee.

There is a national trend for organizations to outsource services that don’t align with their core competencies. By doing this, it saves them time and money so they can focus on their core customer services that generate revenue.

Contact the experts at Aura to be your Non-emergency Medical Transportation provider and ask how we help one of our clients save OVER $130,000 a year in transportation.