Services Segment, by Offering to Account Larger Share in New Jersey NEMT Market during 2023-2031

According to our latest study on "New Jersey NEMT Market Forecast to 2031 - County Analysis - Offering, Payment Type, Facility, Application, and End User," the market size is expected to grow from US$ 443.25 million in 2023 to US$ 740.96 million by 2031; it is anticipated to record a CAGR of 6.7% from 2024 to 2031. The report emphasizes the New Jersey NEMT market trends, and the drivers and deterrents affecting its growth. The increasing need for NEMT and the surging incidence of chronic conditions are the crucial factors propelling the New Jersey NEMT market growth. However, fraudulent activities by service providers and a lack of efficient oversight systems impede the market growth. In addition, collaboration with transportation companies acts as an emerging trend in the market.

People covered by Medicaid in the US can avail of transportation services as an essential benefit. The KFF Medicaid Budget Survey estimates state that 18.4% of the New Jersey population had enrolled in Medicaid healthcare membership as of 2022, which was mostly driven by the COVID-19 crisis and a high unemployment rate. The requirement for NEMT services grows further with the rise in healthcare enrollment and eligibility. According to a study published in the American Journal of Public Health in 2019, ~16,000 individuals in the US seem to miss their doctor's appointments on a daily basis due to lack of transportation, and several of these individuals have chronic conditions. Thus, the need for transportation is increasing among patients as they struggle to reach clinics or hospitals as per their appointments, which benefits the NEMT service providers in New Jersey. The shared mobility segment has undergone proliferation and normalization in New Jersey in recent years. Moreover, NEMT in New Jersey has evolved with the involvement of NEMT brokers or managed care organizations (MCOs) to deliver transportation. The brokers or MCOs receive payment to offer NEMT services on a fee-for-service basis through local service providers.

According to the Population Reference Bureau, the share of the New Jersey population aged 65 and above rose from ~16.2% in 2018 to 16.6% in 2019. As per the article "Which is the oldest state

How NJ's population compares with the rest of the nation," ~17.4% of the population was aged 65 years or older in 2021. Thus, the need for NEMT services rises in New Jersey with an increase in the geriatric population, as people from this demographic group require assistance while commuting to their routine check-up facilities.

Based on offering, the NEMT market is segmented into services and solutions/platforms. The services segment is further divided into ambulatory transportation, wheelchair and stretcher transportation, medical escort services, public transit programs, and others. The services segment held a larger market share in 2023. NEMT services include ambulatory transportation, wheelchair and stretcher transportation, medical escort services, and public transit programs, among others. Ambulatory transportation uses the most basic type of NEMT vehicle, which could be a customized sedan with a spacious seating area at the back. These vehicles are suitable for passengers who don't use any medical equipment and can move on their own; drivers can easily assist the patient to and from the vehicle. People using a cane or collapsible walker can request an ambulatory transport service for their appointment.

Wheelchair medical transportation service is specifically helpful for patients who cannot walk on their own. Usually, a van and wheelchair lifts are operated by CPR trained drivers. Bedridden individuals who cannot sit upright are among the most challenging patients to move; these are the ones who require regular checkups the most and thus require medical transportation using a stretcher. A few of the NEMT companies also rent out wheelchairs for patients.

Medical escort services or medical escort flight services include a specialized physician nurse or a paramedic who accompanies the patient and stays with them at all times. They can provide a quick first-aid treatment using emergency equipment available in the vehicle if patients' condition worsens during their flight. NEMT providers may use public transportation or bus tokens, taxis, vans, ambulances, ride shares, or airplanes, if necessary, to get participants to health care appointments. Further, patients may receive reimbursements for gas costs if they opt to go by their own or their friends' or neighbors' vehicles.

By payment type, the market is segmented into private pay patient transportation and insurance-backed patient transportation. The private pay patient transportation segment held a larger share of the market in 2023. Private pay patient transportation includes transportation to and from doctors' appointments, hospital visits, and pharmacy pick-ups. This type is also opted for by patients for their medical travel plans and those who are not Medicaid members. Medicare and private insurance policies don't include transportation fees; hence, patients pay for NEMT fees out of their pockets. With private pay patient transportation, NEMT companies can offer custom rates of reimbursement with higher margins compared to other, trip distance, tendency to travel during off-peak hours in addition to regular business hours. Currently, private pay transportation is essential for shifting the insurance scenario in the NEMT businesses, particularly for non-Medicaid members.

In terms of facility, the market is segregated as intra-facility and inter-facility. The inter-facility segment dominated the market in 2023.

Based on application, the NEMT market is segmented into dialysis; routine doctor visits; chronic care management, and preventive care and specialist visit; mental health related appointments; rehabilitation; special needs application; and others. The mental health-related appointments segment dominated the market in 2023.

Based on end user, the NEMT market is segmented into healthcare institutions, schools, homecare settings (private), non-profit and district communities, managed care organizations and state agencies, healthcare payers, and others. The healthcare institutions segment is further segmented into hospitals and clinics, nursing homes, senior homes, assisted living facilities/adult day care centers, rehabilitation, medical universities, and others. The healthcare institutions segment dominated the market in 2023.

Uber Technologies Inc, Abba Medical Transportation, LLC, NJ STAR LIMO, Able Medical Transportation, Inc., Bell Medical Transport, Upscale Medical Transportation NJ, Marvel Medical Transport LLC, Life Ride, SJSL Specialty Transport, INSPIRING NJ, ASK Transportation Services LLC, and Boomerang Transportation are among the leading companies operating in the global New Jersey NEMT market.

Companies operating in the New Jersey NEMT market adopt various organic and inorganic strategies. Organic strategies mainly include product launches and product approvals. Acquisitions, collaborations, and partnerships are among the inorganic growth strategies witnessed in the New Jersey NEMT market. These growth strategies allow the market players to expand their businesses and enhance their geographic presence, thereby contributing to the overall New Jersey NEMT market growth. Further, acquisition and partnership strategies help them strengthen their customer base and expand their product portfolios.

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