The Village of Woodlawn, Ohio, started its own medical transport service to generate revenue and fill a market gap.
After one year, the service is profitable, having grossed nearly $400,000.
The venture was launched to address a shortage of reliable non-emergency transport that was straining the local fire department.
The service, which operates separately from the fire department, aims to provide a new revenue stream for the village.
Cities can own a lot, anything from a parks and police cars to pools and property. But Woodlawn decided to own something few, if any, other municipalities in the state own: a medical transport service.
If it all works out, it could provide more stable revenue for village. That could mean fewer tax levies, or in a dream scenario, lowering tax rates for residents.
And so far, it is working.
After a year, the venture is already paying for itself and operating in the black, according to Eliot Docherty, the service’s finance and billing supervisor. He said the operation had grossed nearly $400,000 in its first year.
Essentially, the Village of Woodlawn started a business competing with other private entities both inside and outside of the village. So how does that work?
Woodlawn Village Administrator Timothy Engel compared it to a recreation center. These centers charge membership fees, sometimes at a discount to residents though normally anyone can join. Members can use workout equipment, take classes and play sports. In theory, these recreation centers compete with private gyms and even nonprofits like the YMCA.
Engel said that in this case, there’s plenty of business to go around. There’s another medical transport business in Woodlawn, and he says they haven’t complained to the village.
To boost revenue, Woodlawn started a medical transport service
