Businesses that specialize in medical transportation offer vital services to those who need to travel to medical institutions (a dentist’s office, doctor’s office, drug store, hospital, or any place that provides covered health and appointments).

The global non-emergency medical transport market is expected to grow by more than 40 percent by 2028 due to the large demand for medical transport caused by an aging population.

Steps on How to Start a Medical Transportation Business in Texas

  1. Conduct Market Research

To be able to optimize revenue from the business, you would need a trustworthy market analysis. Creating a market-based research topic that is in line with your company’s overall goal and objective should be the first stage in the market research process of your medical transportation business.

In this regard, you should look for data that will help you build your business to profitability, data that will give you trustworthy information about what your potential market will be looking for from a medical transportation company, and data that will help you operate your medical transportation business less stressfully.

a. Who is the Target Market for Medical Transportation Business?
  • Aging people
  • Injured Sports Men and Women
  • Physically Challenged Persons
  • Persons with mental/psychiatric challenges
  • The elderly
b. Is the Medical Transportation business a Profitable Business in Texas?

The medical transportation industry is profitable, according to the facts that are currently available. Medical transportation providers in the United States can charge anything between $25 and $60 per hour for their services. As a result, if you put in 20 hours per week at a wage of $25, you will earn around $500 per week, $2,000 per month, or $240,000.

c. Are There Existing Niches in the Industry?

Due to the fact that medical transportation is a part of the ambulance services industry, there are currently no medical transportation company niches.

d. Who are the Major Competitors in Texas?
  • OnTrack Transport Services, LLC
  • Florida Medical Transport
  • TransMedCare Long Distance Medical Transport
  • ITDV Non-Emergency Medical Transportation
  • Stellar Transport
  • Metro Medical Transport Inc.
  • Medical City Transportation
  • ACC Medlink Long Distance Medical Transport & Air Ambulance
  • Leopard Medical Transport
  • Apollo Medical Transport
  • Freedom Medical Transport
  • ATC Medical Transport
  • We Care Specialty Transport
  • Medicab Transportation
  • AMC Medical Transportation
  • Owl Transportation Inc.
  • Florida Medical Transportation
  • Peelers Medical Transport
  • Front Line Transport Emerald Coast
  • iTransport Services, Inc.
e. Are There County or State Regulations or Zoning Laws for Medical Transportation Businesses in Texas?

In Texas, medical transportation businesses must abide by both county and state requirements. For instance, a provider licensed by the county or operating under a permit issued by the county may not be required to use a vehicle that is bigger than necessary or that is incompatible with the medical condition of the people being transported.

f. Is There a Franchise for the Medical transportation business in Texas?

Yes, there are franchise opportunities for the medical transportation business, and here are some of them;

  • Caliber Care+Transport Franchise
  • Medex Patient Transport
  • Stellar Transport
  • Caliber Patient Care Franchise.
g. What Do You Need to Start a Medical Transportation Business in Texas?
  • A Feasibility Report
  • Business and Marketing Plans
  • Medical Transport Business Licenses and Permits
  • Ambulette or Comfortable Car or Bus
  • Commercial Driver’s License (CDL) (at least a Class B CDL)
  • Insurance
  • EIN (Employer Identification Number)/Federal Tax ID Number.
  • A Corporate Bank Account
  • Employees
  • Operational Capital (For Ongoing Expenses)
  1. Choose a Memorable Business Name

When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable. Some of the catchy business name ideas suitable for a medical transportation business are;

Creative Medical Transportation Business Name ideas
  • Connery Cage© Medical Transportation Company, Inc.
  • Jonny Jordan® Medical Transportation Company, LLC
  • All Dependable© Medical Transportation Company, Inc.
  • Medic Resolutions® Medical Transportation Company, Inc.
  • Beige Greenery™ Medical Transportation Company, Inc.
  • Gordon Maxwell™ Medical Transportation Company, LLC.
  • Jeffrey Jones© Medical Transportation Company, LLC
  • Seal Medics® Medical Transportation Company, Inc.
  • Health Temple© Medical Transportation Company, Inc.
  • Bullring Hickson© Medical Transportation Company, Inc.
  • Go Trans® Medical Transportation Company, LLC
  • Jerry Sean® Medical Transportation Company, LLC
  • Gusto Medics™ Medical Transportation Company, LLC
  • Horgan Andrel© Medical Transportation Company, Inc.
  • Your Cover® Medical Transportation Company, Inc.
  • Parker Ruga™ Medical Transportation Company, Inc.
  • Hugo Basil™ Medical Transportation Company, Inc.
  • Gonzalo Rivers© Medical Transportation Company, Inc.
  • Reel Wheels® Medical Transportation Company, LLC
  • Remmy Jones™ Medical Transportation, Inc.
  1. Register Your Business

a. What Type of Business Structure is Best for a Medical Transportation Company?

While there are several options, including sole proprietorship, partnership, limited liability company (LLC), and corporation, the majority of businesses in this field pick LLC as their legal structure. It is common for a business to consider creating an LLC in order to defend itself in court.

Please be aware that if an LLC has any workers or is required to file any of the excise tax forms listed below, an EIN will be needed.

b. Steps to Form an LLC
  • Choose a Name for Your LLC.
  • File Articles of Organization.
  • Choose a registered agent.
  • Decide on member vs. manager management.
  • Create an LLC operating agreement.
  • Comply with other tax and regulatory requirements.
  • File annual reports.
c. What Type of License is Needed to Open a Medical Transportation Business in Texas?
  • Medical Transport Business License
  • Commercial Driver’s License (CDL) (at least a Class B CDL)
  • Zonal Permits
  • Signage Permit
  • Operational State Facility Inspections for your parking
d. What Type of Certification is Needed to start a Medical Transportation Business?
  • The Certified Transport Specialist (CTS)
  • EMT certifications
  • Basic CPR and First Aid Certifications
  • Passenger Assistance Safety and Sensitivity (PASS) Trainer and Driver Certification.
e. What Documents are Needed to Open a Medical Transportation Business in Texas?
  • DBA
  • EIN
  • Business and liability insurance
  • Federal Tax Payer’s ID
  • State Permit and Building Approval (For your parking)
  • Certificate of Incorporation
  • Commercial Driver’s License (CDL) (at least a Class B CDL)
  • Medical Transport Business License
  • Business Plan
  • Employment Agreement (offer letters)
  • Operating Agreement for LLCs
  • Insurance Policy
  • Online Terms of Use
  • Online Privacy Policy Document
  • Contract Document
  • Company Bylaws
  • Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?

In Texas, starting a medical transportation business is a completely open-door endeavor that doesn’t require any special licensing.

  1. Cost Analysis and Budgeting

a. How Much Does It Cost to Start a Medical Transportation Business in Texas?

In Texas, there are a variety of factors that can affect the launch costs of a medical transportation company. The size, brand, and model of the ambulettes, as well as factors like the quantity and number of ambulettes.

But in general, it will cost between $200,000 and $600,000 to establish a medical transportation firm, and that amount might easily increase depending on the kind and number of ambulettes you want to use to launch the enterprise and, of course, your overall business aims and objectives.

b. What are the Costs Involved in Starting a Medical Transportation Business in Texas
  • The Fee for registering the business in the United States – $725.
  • The budget for legal fees, insurance, permits, and license – $5,000
  • The cost of leasing a facility – 100,000
  • The amount needed to renovate our Facility (electrical, furnishings, plumbing, painting, and landscaping) – $10,000.
  • The cost for the purchase of furniture and equipment (Flat Screen TVs, computers, printers, cabins et al) – $10,000
  • Other start-up expenses including stationery – $1000
  • Phone and utility deposits – $3,500
  • The cost for the purchase of ambulettes – $150,000.
  • The cost opening party – $5,000 (optional)
  • Cost for payment of salaries for the first 3 months of operations – $50,000
  • Additional Expenditure (Business cards, Signage, Adverts, and Promotions et al) – $5,000
  • The cost of launching an official website – $600
  • The cost for our grand opening party – $3,000
  • Miscellaneous – $2,500
c. What Factors Determine the Cost of Opening a Medical Transportation Business in Texas?
  • The size of the medical transportation business (number of ambulettes to start the business with)
  • The choice of location
  • The required licenses and permits
  • The cost of hiring and paying a business consultant and attorney
  • The cost of branding, promotion, and marketing of the medical transportation business
  • The cost for furnishing and equipping the medical transportation business
  • The cost of insurance policy covers
  • The cost of registering the business
  • Cost of recruiting and training your staff
  • The cost for the purchase and customizing of uniforms
  • The cost for the grand opening of the medical transportation business.
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

Building a new facility is not required for your medical transportation company, but if you have the necessary funding, it will pay to develop your own parking facility and administrative office.

e. What are the Ongoing Expenses of a Medical Transportation Business?
  • Gas and lubricants
  • Essential medical supplies (hand gloves, face mask, hand sanitizer and sterilizers et al)
  • Utility bills (internet subscriptions, phone bills, signage and software renewal fees et al)
  • Salaries of employees
  • Ambulettes maintenance
  • Insurance
  • Marketing and business promotion costs
f. What is the Average Salary of your Staff?
  • Chief Operating Officer (Owner) – $68,000 Per Year
  • Admin and HR Manager – $48,000 Per Year
  • Transport and Logistics Manager – $48,000 Per Year
  • Nurses/Nurse’s Aides/Paramedics – $40,000 Per Year
  • Marketing and Sales Executive (Business Developer) – $38,000 Per Year
  • Accountant $38,000 Per Year
  • Ambulette Drivers – $36,800 Per Year
  • Customer Service Officer (Receptionist) – $26,100 Per Year
g. How Do You Get Funding to Start a Medical Transportation Business?

Selling shares to interested investors; raising capital from investors and business partners; raising capital from personal savings and the sale of personal stocks and properties; applying for a loan from your bank or banks; pitching your business idea and seeking business grants and seed funding from the government, donor organizations, and angel investors; and obtaining soft loans from friends and family.

  1. Write a Business Plan

a. Executive Summary

Gusto Medics® Medical Transportation Company, Inc. is a registered and licensed medical transportation company that will be based in Corpus Christi, Texas. We are in the business of offering medical transportation to patients who want to go to medical facilities.

All necessary licenses and permits are now in place for Gusto Medics® Medical Transportation Company, Inc. to conduct business in Texas. We will adhere to the laws and guidelines governing the medical transportation sector, and we will only use trained and experienced drivers who possess a current commercial driver’s license (CDL).

b. Products and Service
  • Land ambulance services
  • Air ambulance services (in the nearest future)
  • Nursing aide (CPR and first aid) services
c. Mission Statement

Our mission is to ensure that we build a successful medical transportation company that will operate not just in Saint Cloud but in the whole of Florida; a company that will boast of having some of the best and most reliable paramedics and ambulettes in Florida.

Vision Statement

Our vision is to become one of the preferred choices for individuals and organizations when it comes to the demand for medical transportation in Texas.

d. Goals and Objectives

The goals and objectives of a medical transportation business are to provide transportation alongside medical care for patients either by ground or air. Truth be told, medical transportation services are absolutely necessary for low-income Medicaid beneficiaries, the elderly, and people with disabilities of any kind.

e. Organizational Structure
  • Chief Operating Officer (Owner)
  • Admin and HR Manager
  • Transport and Logistics Manager
  • Nurses/Nurse’s Aides/Paramedics
  • Marketing and Sales Executive (Business Developer)
  • Accountant
  • Ambulette Drivers
  • Customer Service Officer (Receptionist)

Marketing Plan

a. SWOT Analysis


  • Excellent operational history
  • Attention to detail.
  • Accurate estimates with no hidden costs.
  • Experience and trained professionals.
  • Excellent customer testimonials.
  • Reliable and efficient ambulettes and service.


  • Not enough existing clientele to run at full capacity immediately
  • The owner is new to large-scale marketing
  • We will need a loan to purchase ambulettes
  • Lack of economies of scale.


  • A growing number of disadvantaged Medicaid recipients, the elderly, those who have a form or disability or the other, and those with low incomes who have no form of transportation to access healthcare services
  • Build upon existing clientele
  • Online market, new services, new technology, and of course the opening of new markets.
  • Increase in the services offered by hospitals due to the current coronavirus pandemic


  • Loans diminish profitability until they are paid off
  • First-year will be financially tight while we gain customers and pay off loans
  • Competition in the area could increase
  • Management of employees requires time, money, and efforts
  • The transport department could change its regulatory status and decide to enforce strict regulations that can stimulate new business.
b. How Do Medical Transportation Companies Make Money?

Medical transportation companies make money by providing transportation alongside medical care for patients who want to access medical facilities and healthcare centers.

c. Payment Options
  • Payment via bank transfer
  • Payment with cash
  • Payment via credit cards
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
  • Payment via bank draft
d. Sales & Advertising Strategies
  • Introduce Your medical transportation business by sending introductory letters alongside your brochure to corporate organizations, hospitals, clinical labs, medical facilities, households, and key stakeholders in and around your city and state
  • Print out fliers and business cards and strategically drop them in offices, libraries, public facilities, train stations et al.
  • Use friends and family to spread the word about your business
  • Post information about your company and the services you offer on bulletin boards in places like schools, libraries, and local coffee shops et al
  • Place a small or classified advertisement in the newspaper, or local publication about your company and the services you offer
  • Leverage referral networks such as agencies that will attract clients who would need your services
  • Advertise our business in relevant health magazines, newspapers, TV and radio stations.
  • Attend relevant expos, seminars, and business fairs et al to market your services
  • Engage in a direct marketing approach
  • Encourage the use of word-of-mouth marketing from loyal and satisfied customers

Financial Projection

a. How Much Should You Charge for your Product/Service?

The majority of medical transportation firms often charge an hourly rate, but it’s crucial to note that in areas where services are paid for by taxes, there may be no out-of-pocket expense. Typically, the cost ranges from less than $400 to $1,200 or more including mileage.

b. How Much Profit Do Medical Transportation Business Owners Make a Year?

A medical transportation company owner should, on average, earn between $40,000 and over $60,000 per year if they have regular customers.

c. What Factors Determine the Amount of Profit to Be Made?
  • The capacity of the medical transportation company (number of ambulettes owned)
  • The location the medical transportation company is covering
  • The management style of the medical transportation company
  • The business approach of the medical transportation company
  • The advertising and marketing strategies adopted by the medical transportation company.
  • The number of years the medical transportation company is in business
d. What is the Profit Margin of a Medical Transportation Company

Depending on how far patients need to be transferred, it might be between 10 percent and 20 percent.

e. What is the Sales Forecast?

First Fiscal Year (FY1):

  • $100,000 (From Self – Pay Clients / Patients)
  • $250,000 (From Health Insurance Companies)

Second Fiscal Year (FY2):

  • $250,000 (From Self – Pay Clients/Patients)
  • $500,000 (From Health Insurance Companies)

Third Fiscal Year (FY3):

  • $500,000 (From Self – Pay Clients/Patients)
  • $1,000,000 (From Health Insurance Companies)
  1. Set Up your Shop/Office

a. How Do You Choose a Perfect Location for Medical transportation business in Texas?
  • The area’s demographics, particularly the proportions of Medicaid recipients, the elderly, those with disabilities of any kind, and people with low incomes who lack access to reliable transportation for medical treatment.
  • The level of demand of services provided by medical transportation businesses
  • The purchasing power of the residents of the location
  • Accessibility of the location
  • The number of medical transportation companies in the location
  • The local laws and regulations in the community/state
  • Traffic, parking and security et al
b. What City is Best to Open a Medical Transportation Business in Texas?
  • Sugar Land, Texas
  • Dallas, Texas
  • Austin, Texas
  • Fort Worth, Texas
  • Houston, Texas
  • San Antonio, Texas
  • El Paso, Texas
  • West Lake Hills, Texas
  • Corpus Christi, Texas
  • Grand Prairie, Texas
  • Plano, Texas.
c. What Equipment is Needed to Operate a Medical Transportation Business?

Ambulettes, fundamental CPR, and first aid supplies, among other things. Additionally, you will require computers or laptops, an internet connection, a phone, a fax machine, and office furnishings (such as chairs, desks, and shelves).

  1. Hire Employees

You should plan to hire a capable chief executive officer (you can fill this role), admin and HR manager, transport and logistics manager, nurse aides and paramedics, marketing and sales executive (business developer), accountant, ambulette drivers, and customer service officer when it comes to staffing a typical medical transportation company.

  1. Launch the Business Proper

Medical transportation providers now open their doors for business without first planning an opening celebration. If you have a limited budget, you may want to host a soft opening. If not, you may want to host a big opening celebration for everyone in the area.

The bottom line is that by properly launching your medical transportation firm, you will publicly notify residents of your city that you are now accepting business.

a. What Makes a Medical Transportation Company Successful?
  • Choose a good location and reliable ambulettes
  • Hire only competent, hardworking, and trustworthy staff
  • Be deliberate with your marketing sales approach
  • Encourage the use of word of mouth to promote your medical transportation business
  • Leverage all available online and offline platforms to promote your medical transportation business.
b. What Happens During a Typical Day at a Medical Transportation Business?
  • The business is open for the day’s work
  • The ambulettes are washed, cleaned, and ready for transporting patients
  • Customer requests are taken and they are scheduled or attended to
  • Schedule maintenance and servicing of ambulettes are carried out
  • Marketing/website upkeep
  • Administrative duties
  • The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Medical Transportation Business?
  • First Aid, CPR, and BLS skills
  • Good driving skills
  • Customer services skills
  • Interpersonal skill
  • Business management skills
  • Bargaining skill
  • Work experience in the medical transportation industry
  • Experience in managing people
  • Experience in business administration
  • Experience in handling logistics and transportation software.