L
Operations

Loaded Miles

Definition
The distance traveled while the passenger is physically inside the vehicle. This is the only mileage that is typically billable in a Fee-For-Service model.

Overview

Why it Matters

Providers are not paid for the miles driving to the patient (Deadhead). Profitability depends on maximizing Loaded Miles vs. Total Miles.

How it Works

Odometer Start (at pickup) and Odometer End (at drop-off) are recorded. The difference is "Loaded Miles."

Code Comparison

Comparison: Loaded Miles vs. Total Miles

Total Miles: Start of day to end of day (Gas cost).

Loaded Miles: Pickup to Drop-off (Revenue).

Common Questions

  • Detours: Billing for actual driven miles when the contract requires billing "Shortest Distance" (Google Maps) miles. If you take a detour for traffic, you often cannot bill the extra loaded miles.
  • Use GPS-integrated software to automatically calculate loaded miles to the decimal point (e.g., 4.2 miles) to avoid audit findings.

Sources

IRS / Medicaid Reimbursement Guidelines