Trends in Facility Transportation.

Observations from a bns manufacturer

More and more facilities these days--both skilled nursing and assisted living--are developing transportation services as a competitive necessity. Families of residents and prospective residents see availability of transportation as a clear advantage. They like the idea that residents can be conveyed to medical appointments safely and conveniently and that residents aren't "stuck in the facility"; shopping and outside activities are readily available.

This marketing appeal is especially important these days, because facilities in skilled nursing and assisted living are focusing primarily on filling their beds or units and keeping them filled.

Another feature of which facilities are taking advantage is the ability to have billboard-type exterior graphics placed on their buses. This enables the facility to advertise itself wherever its buses go in the community. There are very few buses we market these days that don't have this feature.

In recent years we have seen that the most popular buses for long-term care facilities are the 14-passenger models (capable of handling 12 ambulatory passengers and two wheelchairs, with two flip-down seats when wheelchairs aren't used). These are conveniently sized for the activities that facilities provide, and at that size, they avoid the necessity of having to the inconvenience and regulation that entails.

The buses themselves have become safer than ever over the years. Regular features today include grab handles, higher-backed seats, internal rearview mirrors for improved passenger monitoring, better driver training and much safer wheelchair tie-down arrangements, with retractable belts that stay out of the way when not used.

A couple of financial pointers: As always, leasing is a very much preferable option to outright purchasing when facilities want to keep the buses off the balance sheet and free up their capital for other expenditures. The purchasing option at the end of the at about 15 to 20% residual value--is probably a good idea for longterm care facilities to exercise, however. Facilities typically don't put much mileage on their buses--usually about 12,000 to 16,000 miles per year--and are not very abusive of the equipment. A well-maintained bus can easily get 200,000 miles over the course of its lifetime (as, for example, is usually the case with airport shuttle buses), which means the facility can get many years of use. Seven to 10 years is typical for most facilities.

The other financial point is that the minimum liability insurance coverage often recommended for this service these days is $5 million. One million dollars liability coverage is fine for transporting flowers or crates, but because long-term care facilities are transporting multiple passengers, they should be better prepared.