How to charge for wait time on private and facility rides: grace periods, rates, and when to leave
Overview
Outside Medicaid, the transportation company sets its own wait charge in most states. The common structure is a free grace period, then a charge per 15 or 30 minutes, written into the quote or facility agreement before the trip. Connecticut regulates it for wheelchair vans: the 2026 statewide maximum is $144 on a one-hour minimum, then quarter hours. Price it near what an hour of the vehicle earns.
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Who sets the wait charge
On a private-pay or facility ride, the transportation company sets its own wait charge. No federal rule prices it; the contract between the company and the customer does. What matters is that the customer agrees to it before the trip and that the charge is backed by recorded times.
Connecticut is the clearest exception. The state regulates what licensed wheelchair van companies, called invalid coaches in its statutes, may charge patients, and waiting is one of the regulated charges. Under its rate regulation, waiting is billed on a one-hour minimum, with time past the first hour in quarter-hour steps. The 2026 statewide schedule of maximum allowable rates sets the invalid coach waiting charge at $144, and the Department of Public Health’s proposed schedule for 2027 lists $148. Companies with their own approved schedules have 2026 maximums from $95 to $215.
Medicaid trips follow a different set of rules. Some programs pay for waiting under T2007 within tight limits and others pay nothing, and the member is never billed for what the program leaves unpaid. Everything below is about the rides you price yourself.
Two different waits
A company waits in two places, and each needs its own terms.
- At the pickup. The driver arrives and the rider is not ready. This is the wait that ends in a late start or a no-show. The terms say how long the driver stays, whether the rider pays for that time, and when the trip becomes a cancellation with a fee.
- At the appointment. After drop-off the driver stays to take the rider home, a wait and return trip. Here the terms set the free waiting time and the price of each block after it.
Brokers set the pickup wait for Medicaid trips, and the wait time entry lists several of their rules. For private trips you choose both numbers. Keep them separate on the rate sheet so a family understands that a slow start at home and a long appointment are charged differently.
Setting the grace period
A grace period is the free time before the wait charge starts. It absorbs ordinary delays: a rider finishing breakfast, a check-in desk with a line, an appointment that runs ten minutes over. Without one, every trip turns into a small invoice dispute.
Three choices define it:
- Length. Ten to 15 minutes absorbs most ordinary delays. Medi-Cal’s rule for wheelchair and litter vans works the same way: it treats the first 15 minutes of a wait as part of the trip and pays only for time beyond that, up to 90 minutes.
- When the clock starts. At the pickup, use whichever comes later, the booked time or the moment the driver pulls up, so an early driver does not run up a charge. At the appointment, start it at drop-off when the driver is staying, or at the booked return time when the driver comes back for it.
- What happens at the end. Either the charge starts on its own, or the driver checks in with dispatch and the customer hears about it before the charge begins. The second costs a phone call and saves most disputes.
Pricing the wait
After the grace period, charge in fixed blocks. Fifteen-minute blocks track real time closely without feeling like a taxi meter. Half-hour blocks are simpler to explain. An hourly rate with a minimum, the way Connecticut does it, suits long appointments such as infusions or surgery pickups.
Set the rate from what the vehicle and driver could otherwise earn. A driver and van sitting in a clinic parking lot are not available for the next trip, so the wait charge should come close to what an hour of that vehicle normally brings in. The revenue per vehicle hour entry explains how to calculate it from your own trip history.
The floor is what the hour costs you. In NAICS 4859, the industry group that takes in special needs transportation, shuttle drivers and chauffeurs earned a mean of $19.44 an hour in May 2025, and payroll taxes and workers’ compensation sit on top of that. Insurance, the vehicle payment, and dispatch time keep running while the van is parked. A wait charge below the driver’s loaded hourly cost means every long appointment loses money.
Example (hypothetical figures): a company with a revenue per vehicle hour of $60 sets private waiting at $15 per 15 minutes after a 15-minute grace period. A rider whose appointment runs 70 minutes past drop-off pays for 55 minutes. Billed in full 15-minute blocks, that is four blocks, or $60. Billed to the minute, it would be $55. Say in writing which one you use.
When to wait and when to leave
Waiting is not always the better choice, even when the customer will pay for it. CMS says as much in its 2023 Medicaid transportation guide: letting the first driver leave and sending a second one for the ride home can cost the program less, yet in some cases a long wait is the efficient option, and it carries real costs for the provider.
For a private trip, compare three things:
- The wait. The driver’s time and the vehicle’s lost earning time, offset by the wait charge you collect.
- Leaving and coming back. Two extra legs of deadhead miles, the driver’s time on the road, and the risk that the rider is ready before the van returns.
- Leaving and doing other work. A paid trip that fits in the gap, less the deadhead to get there and back.
Example, using made-up numbers: a clinic 15 miles from the garage, a two-hour appointment, and a vehicle cost per mile equal to the IRS business rate in effect since July 1, 2026 (76 cents, a stand-in for your own figure). Driving back to the garage and returning adds 30 empty miles, or $22.80 in vehicle cost, plus about an hour of the driver’s time on the road. Waiting costs two hours of the driver’s time and no miles. If a paid trip can fill the gap, leaving wins. If nothing fits, waiting is cheaper, and a wait charge turns it into income.
A will-call return is the other option: the driver leaves and comes back once the rider or the clinic phones to say the visit is over. It suits appointments with no fixed end time, at the cost of a wait for the rider while the van comes back. Use the deadhead cost calculator to put your own numbers on the empty legs.
What the driver’s waiting costs you
Whether or not the customer pays, the driver’s waiting time is usually work time you owe. Federal wage rules draw the line this way:
- Engaged to wait (work time). A driver parked outside the clinic with no idea when the rider will come out is on the clock (29 CFR 785.15). Permission to step away for coffee does not change that; the time still belongs to the job.
- Waiting to be engaged (not work time). Under 29 CFR 785.16, a break counts as off duty when the driver is completely relieved, has a set time to report back, and can actually use the time for personal business. A driver told after a morning drop-off to be off until 2:00 p.m., a three-hour gap, may fit this.
- On call. Under 29 CFR 785.17, having to stay at the site, or so close that the time cannot really be used, is work. A driver free to go elsewhere, who only has to leave word where to be reached, is off the clock.
So a wait charge is not extra profit. It pays for time you are already paying the driver for. When you quote a long wait, count the driver’s hours toward overtime the same way you count driving time.
Writing wait terms into quotes and facility agreements
Wait charges cause disputes when they appear on an invoice the customer never agreed to. Put the terms where the customer sees them first:
- The grace period at pickup and at the appointment, in minutes.
- The block and the rate, such as $15 per 15 minutes, and whether partial blocks round up.
- When the clock starts: the booked time or the drop-off, never an early arrival.
- A cap. Past it, the driver is free to go, and the ride home becomes a separate trip with its own charge.
- Who confirms the times. For facilities, a nurse, case manager, or front desk initials the departure time.
- How it shows on the invoice: the start and end times and the number of blocks on their own line.
Facility contracts deserve special care, because the facility often causes the wait. A discharge held for paperwork or a prescription is a facility delay, and the agreement should say the facility pays for it. A facility transportation agreement has room for each of these terms, and the no-show policy template covers the pickup side. For pricing the rest of the trip, see the NEMT pricing guide.
Backing up wait charges in HealthRide
A wait charge holds up when the times behind it were captured as they happened. HealthRide’s trip records keep the timestamps from the driver app, and recorded wait times on no-shows show how long the driver stayed at the door. Each completed trip turns into an invoice at that payer’s fares, with the times on record if a customer asks.
Frequently asked questions
- What is a fair free waiting period?
- Long enough to absorb ordinary delays, short enough that it does not swallow the next trip. No rule sets it for private trips. Medi-Cal, as one reference point, treats the first 15 minutes of a wait as part of the trip and pays only for time after that. Whatever you pick, state it in writing and start the clock at a fixed event, such as the scheduled pickup time.
- Is a driver's waiting time at a clinic paid work time?
- Usually. When a driver must remain near the vehicle for an open-ended wait, federal rules treat the driver as engaged to wait, and every minute of it is paid work (29 CFR 785.15). Under 29 CFR 785.16 it becomes off-duty time only if the driver is completely relieved, is told in advance exactly when to come back, and has enough time to use for personal errands. The pay is owed whether or not the customer pays a wait charge.
- Is waiting billable to a Medicaid rider?
- No. 42 CFR 447.15 requires an enrolled provider to accept what the program pays as payment in full. A member cannot be billed extra for waiting on a covered trip. Some programs pay for waiting under code T2007 within strict limits, and others pay nothing. The T2007 entry covers how those programs handle it.
- Should I charge for waiting at hospital discharges?
- Yes, and say so in the facility agreement. Discharges can run late for paperwork, prescriptions, or equipment, and the facility controls those delays. One workable approach is a grace period from the scheduled pickup time, then 15-minute charges billed to the facility, with the nurse or case manager initialing the actual departure time.
- What backs up a wait charge if a customer disputes it?
- Times recorded as they happened: arrival, the moment the rider was ready, and departure, plus who confirmed them. A signed trip log or timestamps captured by the driver app settle most disputes. A charge built from round numbers written in afterward is hard to defend.