P
Definition
The Transportation Provider (TP). The independent business entity contracted to perform the physical transportation service. This ranges from a single owner-operator with one car to a large fleet with 100+ vehicles.
Overview
Why it Matters
The TP is the "boots on the ground." In the brokerage model, the TP takes the operational risk (gas, maintenance, driver wages) in exchange for a per-trip or per-mile fee.
How it Works
The TP accepts trips from the Broker via a web portal or API, dispatches drivers, performs the trips, and submits claims to the Broker.
Code Comparison
Comparison: Provider vs. Broker
Broker: Manages the network and eligibility (Office work).
Provider: Manages the fleet and passengers (Road work).
Common Questions
- Subcontracting: A TP subcontracting their trips to another TP without telling the Broker (often prohibited or requires specific approval).
- Dependency: Operating as a "Captive Provider" (100% of revenue from one Broker). If that contract ends, the business fails.
- Maintain distinct "NPI" (National Provider Identifier) numbers for each location if operating in multiple states.
- Build a "Private Pay" book of business (e.g., nursing homes, workers comp) to reduce reliance on Medicaid Brokers.
Sources
CMS - Enrollment of NEMT Providers