1. Some Additional Considerations in NEMT Service Delivery
April 25, 2016
Presented at the:
2017 CALACT Spring Conference & Expo
Olympic Valley, CA
Presented by
Richard Garrity
RLS & Associates, Inc. . .

2. NEMT Complexities Issues with Capitated Rates
Critical That Transportation Providers Understand Their Costs
Trips
Profitable
Unprofitable
Must Provide a Balance to Break-Even 6

3. Fully Allocated Costs
All Providers Must Use Fully Allocated Costing Methods to Understand The System’s Costs to Deliver NEMT
In Some Ways, a Trip-by-Trip Assessment May be Required 6

4. Fully Allocated Costs
Cost Models Must Go Beyond Traditional Practices in Public Transportation
We Must Account for
Ridesharing Factors (Load Factors)
Trip Lengths
Loaded Miles
Different Than NTD Revenue Miles 6

5. New Realities Increasing Levels of Administrative Burdens
The Assumption that NEMT Trips are Comparable to Contract Human Service Agency Trips: No Longer Valid
Traditional Cost Allocation Models, Designed to Aid Transit Agencies Cost Out Transit Services, Have Flaws 6

6. New Realities Traditional Cost Allocation Models
Breaks Down Transit Costs
Fixed
Variable
We Further Break Down Variable Costs to Reflect Both Time and Distance
Why? 6

7. New Realities
Do These Trips Cost the Same? 6

8. New Realities
Do These Trips Cost the Same? 6

9. New Realities Fixed Costs Were Allocated on Some Equitable Basis But
Typically, Service Units
But
These Methods Typically Allocate on a Uniform Basis
Observation of Demand Response Operations Indicated the Level of Administrative Overhead Consumed for Some Trips – NEMT – Are Not Equal! 6

10. New Realities
There is a Difference in Subscription vs. Casual DR Trips
There is a Difference in Pre-Trip Verification Requirements
There is a Difference in Post-Trip Billing Practices 6

11. New Realities Potential Differences in Your Cost Structure GP Trips
Comparable Trip Reservations Functions
Farebox Counting/Reconciliation
No Third Party Billing
Lowest Variable Costs
Comparable Trip Reservation Functions
Volunteer Assignment Process
Post Trip Volunteer Reimbursement
Third Party Billing
Post Trip Passenger Accounting
Pre-Trip Eligibility Determination
Medical Service Verification
Post-Trip Passenger Accounting
GP Trips
Volunteer Trips
Human Service Agency Trips
NEMT Trips 6

12. New Realities
Existing Cost Allocation Models Do Not Take Such Variations Into Account
What Is Needed?
A New Generation of Cost Allocation Models That Recognize These Principles
What Do We Do In the Interim? 6

13. New Realities In-House Analysis of Time/Effort
Conduct Internal Time/Work Studies to Determine Your Own Level of Effort
Apply the Results to the Allocation of Your Fixed
Expenses in Demand Response Operations 6

14. New Realities Multiple Strategies In-House Analysis of Time/Effort
Conduct Internal Time/Work Studies to Determine Your Own Level of Effort
Apply the Results to the Allocation of Your Fixed
Expenses in Demand Response Operations
Need to Develop New Methods to Allocate Fixed Expenses 6

15. Rich Garrity, Senior Associate
Presenter
Rich Garrity, Senior Associate
RLS & Associates, Inc.
Corporate:
3131 S. Dixie Highway, Suite 545
Dayton, OH 45439
(937)
Rich:
801 S. Shore Drive
Surf City, NC 28445
(910) 6