Dispatching vs In-House Operations: Cost Comparison for NEMT Owners

For NEMT business owners, the decision between outsourced dispatching and in-house operations often comes down to one question: what is the true total cost of each approach? This analysis provides a transparent, numbers-based comparison to help you make an informed decision.

In-House Dispatch: True Cost Breakdown

The true cost of in-house dispatching extends far beyond dispatcher salaries. For a 24/7 operation, you need a minimum of 4.5 FTE dispatchers at $38,000-52,000 average salary totaling $171,000-234,000 in compensation, benefits at 25-30% of salary adding $43,000-70,000, dispatch software at $500-2,000 per month ($6,000-24,000 annually), phone system and technology at $3,000-8,000 annually, training costs at $2,000-5,000 per new hire, management overhead at approximately $15,000-25,000, and facility costs allocated at $5,000-15,000. Total in-house cost: approximately $245,000-401,000 annually.

Outsourced Dispatch: Cost Structure

Outsourced dispatch pricing typically follows one of three models: per-trip pricing ($2-6 per trip), monthly retainer based on volume tiers, or per-minute pricing for call-based services. For a 75-trip-per-day operation, outsourced dispatch typically costs $54,750-164,250 annually depending on the pricing model and level of service.

Hidden Costs of In-House Operations

The comparison above does not capture several hidden in-house costs: turnover (dispatchers average 30-40% annual turnover), overtime during coverage gaps, quality issues during training periods, and the opportunity cost of management attention diverted from growth activities.

Conclusion

For the vast majority of NEMT operators, outsourced dispatching delivers superior economics. The exceptions are large-scale operators (100+ trips daily) with established management infrastructure and the resources to invest in top-tier technology and training programs.