Special Needs Transportation
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 3,600 special needs transportation providers in the US offer transport services to the infirm, elderly, or handicapped. Organizations generally receive funding from a combination of fares, government programs, Medicaid NEMT, and service contracts. The industry excludes firms that focus on school or employee bus transportation for special needs individuals or ambulance services.
Dependence On Government Funding
Special needs transportation providers often rely on multiple sources of government funding, including the Federal Transit Administration (FTA), Medicare, Medicaid, and the Veterans Health Administration.
Specialized Vehicle Requirements
Riders with special needs often require specially-equipped vehicles.
Industry size & Structure
The average special needs transportation provider operates a single location, employs about 17 workers, and generates $1-2 million in annual revenue.
- The special needs transportation industry consists of about 3,600 firms that employ about 62,000 workers and generate around $5.5 billion annually.
- The top 50 organizations account for 45% of industry revenue.
- Most special needs transportation providers operate within a limited geographical market or metropolitan area and may work in conjunction with public transportation systems.
- Access Services of Los Angeles, CA is one of the largest public operators of paratransit services in the US.
Industry Forecast
Special Needs Transportation Industry Growth
Recent Developments
Nov 6, 2024 - Medicare Advantage Payment Updates Finalized
- Medicare payments to Medicare Advantage plans are expected to increase an average of 3.7%, or over $16 billion in 2025, according to the Centers for Medicare & Medicaid Services. Enrollees in Medicare Advantage Special Needs Plans have greater access to transportation benefits, according to health policy research organization KFF. The finalized the Calendar Year 2025 Rate Announcement for Medicare Advantage is projected to result in payments of between $500 and $600 billion in Medicare Advantage payments in 2025.
- About 83% of special needs school transportation vehicles nationwide lack electronic tracking technology, according to an annual survey reported in School Bus Fleet. The report comes as more students are identified as needing special attention and transportation. About 59% of the 2024 survey respondents reported that the percentage of passengers who have special needs increased year over year.
- About 96% of transit agencies surveyed by the American Public Transportation Association reported a workforce shortage, and 84% of those reporting a shortage said that it is affecting their ability to provide service. Shortages are most acute at entities serving large, urbanized areas and/or with greater ridership, but reports from across the country indicate that the shortage has forced service reductions regardless of ridership size, service area population, or fleet. Shortages of operators and mechanics are particularly acute.
- Total revenue for transit and ground passenger transportation increased 22.9% year over year and 8.1% quarter over quarter in the second quarter of 2024, according to the US Census Bureau. Special needs transportation industry employment increased slightly while average wages for nonsupervisory employees decreased moderately during the first nine months of 2024, according to the US Bureau of Labor Statistics. Special needs transportation industry sales are forecast to increase at a 5.67% compounded annual rate from 2024 to 2028, faster than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.
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