28-05-2025
Navigating Change In Non-Emergency Medical Transportation
Miguel McInnis is the President and CEO of Coordinated Transportation Solutions (CTS).
For years, the healthcare industry has been grappling with what to do about the Baby Boomer generation, currently around 73 million strong. From nursing shortages to exploding costs, professionals have been consistently seeking ways to deal with this aging population, who by 2030 will all be at least 65 years old.
Meanwhile, the industry is at a crossroads as technological transformation, policy shifts and evolving customer expectations converge. I particularly see the non-emergency medical transportation (NEMT), which transports patients when they're not in emergency situations, as helping to transform the industry's future.
But NEMT providers must adapt to the emerging "new normal," leveraging technology, navigating policy shifts and enhancing customer experience in order to remain competitive.
I believe a major disruptor for the NEMT industry is the proposed cuts to Medicaid, which could reduce the number of eligible recipients and, in turn, decrease the demand for trips to medical providers.
We could also see a reversal in Medicare Advantage and Special Needs plans offering non-medical transportation. This benefit has increasingly been offered over the last several years due to incentives provided by the Centers for Medicare and Medicaid Services (CMS), but the Value-Based Insurance Design (VBID) model, devised to foster innovation and reduce inequities and disparities, is set to sunset at the end of 2025. If transportation benefits are scaled back, NEMT companies will need to develop innovative strategies to sustain service levels while adapting to new financial constraints.
I think diversification could be the key to addressing these ramifications. By expanding offerings, forming strategic partnerships with health plans and integrating care coordination efforts, NEMT businesses can sustain their growth despite regulatory challenges.
There is no doubt that technology has done wonders for the healthcare industry and made it easier for patients to access their providers. The Covid-19 pandemic led to a boom in the use of telemedicine, so by 2021, over 86% of doctors were using it to deliver care in lieu of in-person visits.
And the number of patients taking advantage of virtual visits is only going to increase. As broadband technology becomes more affordable and seniors become more comfortable using it, the likelihood of patients taking trips to their doctors' offices is going to likely decrease. As a result, the NEMT industry will need to make further adjustments to its business model to address the reduction in demand for trips.
Artificial intelligence (AI) will likely play a huge role in how we do business in the future, and there are so many ways this technology can support our work. As one example, AI can help streamline internal call center activities by improving efficiency in trip planning.
Improvements to the technology can also make trip planning effective by reducing fuel and overall operating costs. Additionally, AI technology can be used for virtual agents, which are becoming advanced enough to both mimic a human voice and provide necessary information to customers in real time. This can go a long way toward reducing cost, increasing our efficiency and seamlessly making services available 24/7.
Beyond technology, NEMT providers are often in the unique position to get to know their customers over time, so we can offer an experience that is tailored to the needs of everyone. If a customer speaks a certain language, we can pair them with a driver who also speaks that language. If someone has a disability and needs help getting downstairs or access to a special van to accommodate a wheelchair, we can provide that extra attention. Making our services more customizable and consistent in various ways can help NEMT companies navigate the new landscape currently being created.
Similarly, making it easier to engage with your services can also boost customer experience. Some customers will feel comfortable booking a trip using a mobile application. Others would prefer to speak to someone on the phone. When people are unwell, the last thing they want is added inconvenience.
By prioritizing their needs and making the experience as seamless as possible, NEMT providers can build a meaningful connection that enhances their satisfaction.
As the NEMT industry navigates the current inflection points, there will inevitably be a balancing act required of us. Despite the role technology will play in evolving the NEMT business going forward, we still can't lose sight of what makes us special to our customers—the human connection we offer.
As we proactively adapt to changes in our industry with agility, we will still give customers the service that they've come to depend on us for. Customers will still want to know that they can rely on us to pick them up in the vehicles they prefer, help them downstairs when needed, communicate with them most effectively and give them the overall experience of concern and comfort that they deserve.
The business inflection points may change how we operate, but they won't change our purpose.
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