With the need for medical transportation services growing due to an aging population and health insurance reform, investing in an ambulance company for sale may prove a rewarding venture for an increasing variety of buyers. For those hoping to expand an existing transportation business or start an exciting new career with great potential for growth, acquiring a medical transportation business may be an alluring avenue. As interest in the medical transportation industry grows, business owners considering a sale may find a large pool of buyers.
In recent years, the medical transportation industry has been undergoing a transformation. Larger companies have been buying up smaller independent companies in order to take advantage of increased market share and economies of scale. Bigger companies are better equipped to contend with challenges such as increasingly complicated regulations and more time spent recovering accounts receivable. Currently, ambulance industry statistics show that 1 percent of the market earns approximately 45 percent of total revenue. Owners of existing medical transportation companies can capture some of those profits by acquiring smaller companies. While they may be weaker players, small ambulance service providers can still come with new technology, experienced drivers, and valuable customer contracts.
Medical facilities are also taking advantage of the growing opportunity for medical transportation profits. Care providers such as hospitals, assisted living facilities, and dialysis centers are increasingly choosing to add in-house transportation services. By bringing medical transportation under their umbrella, these businesses can reduce time and effort spent on communicating with contracting ambulance companies while taking advantage of available profits. Because most medical facilities already have staff experienced in payment processing – including the tedious task of dealing with Medicare and Medicaid ambulance coverage – they could have a competitive edge over small independent ambulance business owners.
First-Time Business Buyers
Despite recent changes to the medical transportation industry, the majority of ambulance companies still sell to first-time business buyers. These investors may be looking for a job they can run from home, a steady income, or simply a change of pace. While having experience in the medical business helps, it’s not a requisite for success, particularly for those who plan to purchase a non emergency ambulance service for sale. Buying an established brand, rather than starting an ambulance business from scratch, reduces risk and startup costs for new investors. Of course, it’s important to start with the appropriate equipment, good drivers, and a solid understanding of the industry – all of which can be achieved by acquiring the right company. A transportation business broker with specific industry experience can match buyers and sellers for the most rewarding results.