Rides to Recovery: Uber & Lyft’s Unexpected Rise in Healthcare

Written by Sophia Ly, PharmD 2027

October 28, 2024

Rides to Recovery: Uber & Lyft’s Unexpected Rise in Healthcare

The expansion of digital ride services such as Uber and Lyft into healthcare has evolved into an unexpected solution to transportation barriers, especially for those needing non-emergency medical care. As many rural hospitals have closed, patients across the U.S., particularly in states like Georgia, Mississippi, and Arizona, increasingly rely on these companies for access to essential medical appointments. For example, Lyft drivers in Georgia recently completed numerous medical-related rides covering 50-200 miles each, with many rural patients traveling hours to reach metro medical centers like Emory University Hospital.1

This reliance on ride-hailing for healthcare access has led both Uber and Lyft to develop dedicated healthcare divisions. Uber Health, launched in 2018, and Lyft’s health services, including programs like Lyft Assisted and Lyft Concierge, now partner with healthcare providers and insurance programs to bridge patient transportation gaps. By coordinating rides through these services, many Medicare Advantage and Medicaid plans aim to reduce missed appointments—a common issue in regions where public transportation options are limited.1, 2

The challenges associated with traditional nonemergency medical transportation are well-documented. Medicaid, a primary funder for these services, spends about $5 billion annually on transportation for low-income individuals. However, current systems frequently suffer from inefficiencies. In Mississippi, for instance, Medicaid patients using government-funded services might experience long rides with group pickups, resulting in hours of travel for brief medical visits. Ride-hailing offers a streamlined, flexible alternative, allowing patients to schedule their transport needs without the extensive wait times typically associated with public or shuttle-based services.2

Uber and Lyft’s approach to healthcare transportation comes with its own set of limitations. Although more accessible than traditional nonemergency services, these platforms are not universally available, especially in rural areas where demand often outpaces driver availability. Moreover, ride-hailing drivers are not necessarily equipped to assist passengers with specific medical needs. As Uber driver Damian Durand describes, transporting patients with health concerns can be stressful, especially since drivers are not compensated for the additional responsibilities they may assume. In response, startups like MedTrans Go have emerged to address this gap, providing specially trained drivers who assist patients with mobility and other needs.1

Cost-effectiveness is a central argument for ride-hailing in healthcare. According to studies from institutions like Stanford, Uber and Lyft could save Medicaid approximately 30-70% in transportation costs if widely adopted. Lowered transportation costs may ultimately improve healthcare outcomes by reducing missed appointments and subsequent delays in care. For instance, Texas’ Legacy Community Health reported a reduction in missed appointments following a pilot program offering free Uber rides to Medicaid patients3. With this financial advantage, ride-hailing could reshape nonemergency medical transport, but sustainable funding and rural access issues will be crucial for future success.

Furthermore, Uber and Lyft’s role in healthcare highlights both innovative progress and the challenges in providing equitable access to medical care. Their services have begun to address critical gaps left by hospital closures and traditional transportation, yet they also underscore the need for more comprehensive solutions, particularly in rural areas. As ride-hailing services evolve within the healthcare sector, partnerships with Medicaid, new funding strategies, and state-led initiatives may help them better serve patients’ medical needs.

References:

1. News KH, Scaturro M. Patients are relying on Lyft, Uber to travel far distances to medical care. Fortune Well. Published October 18, 2024. Accessed October 29, 2024. https://fortune.com/well/article/patients-lyft-uber-medical-care-travel/

2. Vollers AC. GOP states embrace Uber, Lyft to take low-income patients to medical appointments. Stateline. Stateline. Published November 1, 2023. https://stateline.org/2023/11/01/gop-states-embrace-uber-lyft-to-take-low-income-patients-to-medical-appointments/

3. Patients turn to Uber, Lyft to get to medical appointments. advisory. Published 2024. Accessed October 29, 2024. https://www.advisory.com/daily-briefing/2024/10/21/medical-transport