DispatchHealth and Medically Home have recently announced a definitive agreement to merge, creating a powerhouse in the home healthcare industry. This combined entity will offer hospital-level care services in over 50 metropolitan areas in collaboration with nearly 40 health systems. The deal is set to be finalized by mid-2025, although specific financial terms have not been disclosed.
With Medically Home joining forces with DispatchHealth, the new organization will have a workforce of over 2,200 employees, with a significant portion being frontline care team members. Jennifer Webster, who took on the role of CEO at DispatchHealth in 2023, will lead the merged company. The primary goal of this merger is to enhance care accessibility, reduce costs, and increase healthcare capacity, as stated by Webster.
Established in 2013 and headquartered in Denver, DispatchHealth provides a range of services including same-day medical care, post-hospitalization recovery services, and hospital-level care at home. The company has secured substantial funding through various rounds of venture capital investments, including a $330 million financing round in late 2022.
On the other hand, Medically Home, based in Boston, offers a platform and support services for healthcare providers like Mayo Clinic, Kaiser Permanente, Yale New Haven Health, and Cleveland Clinic to deliver advanced care to patients in their homes. Over 55,000 patients have benefited from the company’s program, receiving hospital-level services in the comfort of their own homes.
The concept of delivering advanced healthcare at home gained traction during the COVID-19 pandemic, with hospitals facing overwhelming patient volumes. In response, the CMS introduced the Acute Hospital Care At Home program in 2020, allowing approved Medicare-certified facilities to deliver inpatient care to patients at home. Although the program operates under a temporary waiver, recent government actions have extended its duration through September 30, providing continuity for this innovative care model.
As the healthcare landscape continues to evolve, the merger of DispatchHealth and Medically Home signifies a commitment to advancing the delivery of care outside traditional hospital settings. By leveraging their respective expertise and resources, the combined entity aims to revolutionize the way healthcare is delivered, ultimately benefiting patients and healthcare systems alike.
