Hospital-at-Home Giants DispatchHealth and Medically Home Announce Merger

In a significant move that promises to reshape the landscape of home healthcare, industry leaders DispatchHealth and Medically Home have announced plans to merge. The deal, expected to close in mid-2025, will create a powerhouse in the hospital-at-home sector, combining the strengths of two well-funded and established players in the market.

Merger Details and Leadership

The combined entity will operate under the DispatchHealth banner, with Medically Home being incorporated into the existing structure. Jennifer Webster, who joined DispatchHealth as CEO in 2023, will lead the merged company. The new organization is set to employ over 2,200 people, with more than half serving as frontline care team members.

While the financial terms of the deal remain undisclosed, both companies bring substantial venture capital backing to the table. DispatchHealth secured a $330 million equity and debt financing round in late 2022, while Medically Home raised $110 million in its most recent funding round approximately three years ago.

Expanded Reach and Services

The merger is poised to create a formidable presence in the hospital-at-home market. The combined company will offer hospital-level home care services across 50 metropolitan areas, partnering with nearly 40 health systems. This extensive network includes collaborations with renowned institutions such as Mayo Clinic, Kaiser Permanente, Yale New Haven Health, and Cleveland Clinic.

DispatchHealth, founded in 2013 and based in Denver, has built its reputation on providing same-day medical care, recovery services following hospitalizations, and hospital-level care at home. Medically Home, headquartered in Boston, has focused on delivering a platform and support services for providers to offer advanced care in patients' homes. To date, more than 55,000 patients have received hospital-level services through Medically Home's program.

Regulatory Environment and Future Outlook

The merger comes at a time of increased interest in home-based healthcare models, partly accelerated by the COVID-19 pandemic. In response to hospital capacity strains during the pandemic, the Centers for Medicare & Medicaid Services (CMS) introduced the Acute Hospital Care At Home program in 2020. This initiative allowed approved Medicare-certified facilities to provide inpatient-level care in patients' homes.

However, the program's future has been uncertain due to its operation under a temporary waiver. Recent developments have provided some clarity, with President Donald Trump signing a short-term government funding bill that extends the program through September 30, 2025. This extension, which also covers telehealth flexibilities in Medicare, offers a more stable regulatory environment for the newly merged company to operate within.