US Non-Emergency Medical Transportation Market is expected to reach US$ 13,438.87 Million by 2031

Private Pay Patient Transportation Segment to Lead Market from 2023 to 2031

According to our new research study on "US Non-Emergency Medical Transportation Market Forecast to 2031 – Country Analysis – by Service Type, Facility, Application, and End User," the market is expected to grow from US$ 6,588.07 million in 2023 to US$ 13,438.87 million by 2031; it is estimated to register a CAGR of 9.3% from 2023 to 2031.

The growing need for non-emergency medical transportation and the rising incidence of chronic conditions are the key factors driving the growth of the US non-emergency medical transportation market. The strategic initiatives by NEMT and transportation network companies are expected to provide lucrative opportunities for the US non-emergency medical transportation market players in the coming years.

US Non-Emergency Medical Transportation Market

Aging Population and Increasing Incidence of Chronic Conditions

According to the Centers for Disease Control and Prevention (CDC), 6 in 10 Americans suffer from at least one chronic disease, such as heart disease, stroke, cancer, and diabetes, and 4 in 10 adults have two or more chronic diseases. There has been a staggering rise in the percentage of adults and children affected by chronic illnesses. Chronically ill patients can be the main concern for family members. In addition to taking care of recurring medical expenses, family members also need to be proactive in arranging transportation, as these patients require regular access to life-saving health services. Managing chronic diseases necessitates regular clinician visits, access to medications, and adjustments to treatment plans to ensure evidence-based care. However, without proper transportation, delays in clinical interventions are unavoidable. Such delays in care can cause exacerbations of chronic conditions or unmet healthcare needs, ultimately resulting in adverse health outcomes. This highlights the urgent need for reliable patient transportation, particularly for patients with terminal illnesses requiring consistent post-acute care management.

While some people might need therapies on a daily basis, many visit their physicians for weekly consultations. Additionally, several chronic diseases, such as arthritis, heart disease, and neurological conditions, can result in temporary or permanent immobility. Many individuals suffering from chronic conditions find it difficult to drive or use public transportation to access healthcare. Arranging a separate car may not be viable, especially for families belonging to low-income groups who do not own any vehicle. NEMT proves to be of great help to people, as these transportation options are cost-effective and specifically designed to cater to people with mobility challenges and medical needs. In addition, the easy availability of NEMT allows individuals with chronic medical conditions to access life-sustaining treatments and healthcare services without any delay.

As per the Factsheet "Population Reference Bureau's Population Bulletin, "Aging in the United States," the population of Americans aged 65 and above is anticipated to double from 52 million in 2018 to 95 million by 2060. It is also predicted that the percentage of the age group of 65 years and above will rise from 16% to 23% in the same year. Older adults experience age-related changes and physical and mental impairment. As the US population ages, the demand for healthcare services has skyrocketed. There is an increase in older adults requiring medical care, ranging from routine check-ups to treatments for chronic conditions (diabetes, hypertension, arthritis, and physical therapy). Any missed appointments can cause disease progression and limit the patient's ability to manage their conditions. Older adults often face mobility challenges, making reliable transportation with specialized vehicles and trained personnel essential to ensure they can access necessary medical appointments. NEMT provides a reliable way to attend appointments, reducing the possibility of missing appointments due to transportation barriers. Thus, the increase in the aging population and chronic conditions bolsters the US non-emergency medical transportation market growth.

Based on service type, the US non-emergency medical transportation market is segmented into private pay patient transportation, insurance backed patient transportation, courier services, and others. The private pay patient transportation segment accounted for the largest share of the market in 2023. Moreover, the same segment is anticipated to register the highest CAGR in the market during the forecast period. Private pay patient transportation offers transportation services for individuals traveling to and from doctor's appointments, hospital visits, pharmacy pick-ups, and other healthcare-related trips. Patients who are not enrolled in Medicaid and do not have their transportation costs covered by insurance or other government programs can avail of these services. Private insurance does not cover transportation fees, requiring patients to pay for non-emergency medical transportation (NEMT) out of pocket.

Benefits associated with private pay patient transportation for NEMT companies include custom NEMT rates of reimbursement with higher profit margins for providers compared to Medicaid-covered transportation, the tendency to travel during off-peak hours in addition to regular business hours, and more flexibility in the billing process compared to Medicaid-based services. Currently, private pay transportation is an important aspect for shifting the insurance scenario in the NEMT businesses, especially for non-Medicaid members, as well as the growing penetration of NEMT services into rural and suburban areas, where insurance and Medicaid coverage may be more limited.

Based on facility, the US non-emergency medical transportation market is bifurcated into intra-facility and inter-facility. The inter-facility segment accounted for a larger share of the market in 2023. Moreover, the same segment is anticipated to register a higher CAGR in the market during the forecast period. Inter-facility transport is the transportation of patients between two healthcare facilities. Inter-facility transport is a vital part of today's healthcare system, allowing facilities to transfer patients who require specialized care that cannot be adequately provided at their current facility. The transportation process is usually accomplished by using air vehicles or ground transportation. Interhospital patient transfers occur when the benefits to the patient are more substantial than the risks of the transfer. The financial constraints of integrated hospital systems and managed care organizations necessitate inter-facility transport to maintain high practice standards and reduce financial burdens.

It is crucial that the workforce involved in inter-facility transfers is legally authorized to perform these tasks, well-versed with the demands of providing care during air or ground transport, and adequately trained to manage potential patient contingencies that may arise during the transfer. Additional training will be needed to prepare all traditional providers for inter-facility care, whether hospital or prehospital-based. However, the specific focus of this additional training may vary depending on the provider's existing knowledge and skill base.

Industry players are employing both organic and inorganic growth strategies to expand their market presence. For instance, in May 2022, Naval Medical Center Portsmouth (NMCP) acquired two new ambulances and established an Inter-Facility Transfer Team (IFTT) to coordinate the movement of patients in a better way. The IFTT will be ready to proceed with a patient movement request within an hour of notification. This team will include nurses, corpsmen, and physicians from NMCP and connected branch health clinics in the Tidewater Market area.

Based on application, the US non-emergency medical transportation market is segmented into dialysis, routine doctor visits, mental health related appointments, rehabilitation, and others. The mental health related appointments segment accounted for the largest share of the market in 2023. However, the rehabilitation segment is anticipated to register the highest CAGR in the US non-emergency medical transportation market during the forecast period. Access to mental health treatment, services, and support is significant for people who have a mental illness to get well and stay well. Patients with mental health-related issues are not legally allowed to use their vehicles for transportation. Thus, having reliable, affordable transportation to and from medical appointments is often a major hurdle to accessing mental health care. This limits the opportunities for individuals to manage their mental health needs, resulting in the need for more costly healthcare services and resulting in worse health outcomes. As mental health conditions such as depression, anxiety, and schizophrenia become more widespread, the demand for related medical appointments increases. This rise in appointments boosts the need for NEMT, supporting effective disease management and potentially reducing overall treatment costs.

NEMT plays a crucial role in improving healthcare access for patients with mental health conditions, ensuring consistent treatment and better health outcomes. By facilitating timely appointments, NEMT helps patients avoid costly emergency services and hospitalizations due to missed appointments. All state Medicaid programs cover NEMT, which helps people get transportation to necessary medical aid, including mental health care. People enrolled in Medicaid are likely to receive care through recommended medical appointments while using NEMT. NEMT is especially important for people with mental illness since behavioral health services is the most frequently cited reason for using NEMT. Oregon Health Plan (OHP) offers members free rides to appointments. Rides are available for covered services, such as medical, mental health, and others under the Oregon Health Plan.

Strategic market activities, such as acquisitions, enhance NEMT accessibility for mental health patients. For instance, in August 2022, MTM, Inc., a major NEMT service provider, acquired Veyo, LLC, another NEMT provider focused on mental health patients. The two companies are set to serve 15.4 million members across 31 states and the District of Columbia, providing nearly 21 million annual trips, including those for mental health appointments.

The rising incidence of mental health disorders, proactive efforts from major market players, and the cost-efficiency of NEMT services for these patients are expected to enhance both the affordability and availability of NEMT services for mental health patients, contributing to the US non-emergency medical transportation market growth of the segment.

MTM, Inc.; AMR; Xpress Transportation; CJ Medical Transportation; VERIDA; ModivCare; Crothall Healthcare; Elite Medical Transport; Acadian Ambulance Service; Transdev; Ride Health; Roundtrip; Medical Answering Services, LLC;  One Call; Stellar Transport; Abba Medical Transportation, LLC; Able Medical Transportation, Inc.; Life Ride; Mobility Transportation Services, Inc.; and ABC Non-Emergency Medical Transportation, LLC are among the leading companies operating in the US non-emergency medical transportation market.

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