New Jersey NEMT Market is expected to reach US$ 740.96 million by 2031

Services Segment to Bolster New Jersey NEMT Market Size 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.

County Overview

The New Jersey NEMT market analysis is derived on the basis of the following counties: Middlesex County, Monmouth County, Mercer County, Somerset County, and the Rest of New Jersey. Middlesex County dominates the market. The Department of Transportation of Middlesex County mainly focuses on providing safe, reliable, and convenient transportation by introducing initiatives to improve the quality of transportation. The MEC pilot initiative was introduced to address transportation gaps in urbanized areas throughout Middlesex County and to ensure that the evolving transportation and mobility system is inclusive and accessible to all residents. As part of this project, the county plans to offer a 24×7, on-demand transit service to pick up riders and drop them off at the locations of their choice. The Middlesex County Area Transit (MCAT) also focuses on modernization to address the growing demand from communities. With this, the county focuses on the goal of achieving a largely electric fleet by 2035; preparing a layout of a real-time, on-demand scheduling and tracking system; and offering an extensive range of mobility options. MCAT services include a reservation-based transportation service for people aged 60 and older and disabled adults aged 18 and above. The ongoing betterment of transportation facilities by the Department of Transportation of Middlesex County subsequently drives the improvement of NEMT services in the county.

New Jersey NEMT Market

The Monmouth County Division of Transportation aims to provide the maximum possible number of trips for transportation for dependent senior and permanently disabled residents of the county by using available resources. The division of county focuses on raising funds for the improvement of transportation services, as well as on expanding the workforce to have a proper NEMT framework.

TRADE (i.e., Transportation Resources to Aid the Disadvantaged and Elderly) is an initiative taken by the Department of Transportation to improve transportation for older adults (age 60+) and people with disabilities. Supporting eligible county residents who require transportation to maintain their health, improve their financial status, utilize various public and private programs and services (medical, therapeutic, and recreational), and access other community resources is the major purpose of the TRADE initiative. Its mission is to provide an efficient, safe, and economical paratransit service to all eligible Mercer County residents by employing trained staff dedicated to the passengers' special needs.

Increasing Need for NEMT Bolsters Market Growth

People covered by Medicaid in the US can avail themselves 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. Hence, the increasing need for NEMT in New Jersey is fueling the New Jersey NEMT market growth.

New Jersey NEMT Market, Segmentation Analysis:

The scope of the New Jersey NEMT market report entails offering, payment type, facility, application, and end user.

New Jersey NEMT Market, by Offering:

The New Jersey NEMT market, based on offering, is bifurcated 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. 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.

New Jersey NEMT Market, by Payment Type:

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 New Jersey NEMT market share in 2023.

New Jersey NEMT Market, by Facility:

By facility, the New Jersey NEMT market is segmented into intra-facility and inter-facility. The inter-facility segment dominated the market in 2023.

New Jersey NEMT Market, by Application:

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

New Jersey NEMT Market, by End User:

By end user, the New Jersey NEMT market is segmented into healthcare institutions, schools, homecare settings (private), non-profit and district communities, MCO 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 held the largest New Jersey NEMT market share in 2023.

Apart from factors driving the market, the New Jersey NEMT market report emphasizes prominent players' developments. 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 prominent players operating in the market.

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