Merger Announced: DispatchHealth and Medically Home, two leading hospital-at-home services, join forces.
In a significant move for the U.S. healthcare industry, DispatchHealth and Medically Home have announced their merger, creating one of the largest high-acuity hospital-at-home companies. The deal, expected to close in the middle of 2025, will see the combined entity operate under the DispatchHealth brand, integrating Medically Home's virtual care technology and clinical command centers into DispatchHealth's nationwide service.
The merger aims to provide comprehensive hospital-level acute care, emergency care at home, and transitional care for post-discharge patients. DispatchHealth, founded in 2013, offers same-day medical care, recovery services, and hospital-level care in the home, while Medically Home provides a platform and support services for leading healthcare providers like Mayo Clinic, Kaiser Permanente, Yale New Haven Health, and Cleveland Clinic to deliver advanced care in patients' homes.
Financial struggles at Medically Home are believed to have motivated the merger. A leaked document suggested a significant loss in valuation, with Medically Home heavily reliant on cash infusions from investors to remain operational. The document indicated that top investors benefited from the deal, while employees and common equity holders received less favorable terms.
The merged firm will expand hospital-level home care services by leveraging the strengths of both DispatchHealth and Medically Home. With more than 2,200 employees, more than half of whom are frontline care team members, the combined company is poised to deliver complex care in patients' homes on a larger scale.
The hospital-at-home sector faces challenges such as regulatory uncertainties and rising investor demands, leading to consolidation. The merger demonstrates an effort to strengthen the hospital-at-home model by combining resources and expertise, potentially setting a precedent for further consolidation in the industry.
The Acute Hospital Care At Home program, which allows approved Medicare-certified facilities to provide inpatient level care in patients' homes, was created by the CMS in 2020. The program operates on a temporary waiver, and there's been uncertainty about whether flexibilities will continue indefinitely. Recently, President Donald Trump signed a short-term government funding bill that extends the Acute Hospital Care At Home program through Sept. 30, along with telehealth flexibilities in Medicare.
Jennifer Webster, CEO of DispatchHealth, will lead the merged firm. Medically Home will become part of DispatchHealth when the deal closes. The merged firm will provide hospital-level home care services across 50 metropolitan areas and partner with nearly 40 health systems. This strategic move is a significant step towards strengthening the provision of hospital-level home care services, addressing the need for more integrated and efficient healthcare delivery models in the U.S.
- The merger between DispatchHealth and Medically Home, due to close in 2025, aims to create one of the largest high-acuity hospital-at-home companies, providing comprehensive healthcare services at home and transitional care for post-discharge patients.
- Medically Home, a virtual care technology and clinical command center provider, will integrate into DispatchHealth's nationwide service, allowing the combined entity to operate under the DispatchHealth brand.
- Financial struggles at Medically Home are believed to have motivated the merger, with the firm relying heavily on cash infusions from investors to remain operational.
- The merged firm, with over 2,200 employees and more than half being frontline care team members, will leverage the strengths of both DispatchHealth and Medically Home to expand hospital-level home care services on a larger scale.
- The hospital-at-home sector is facing challenges such as regulatory uncertainties and rising investor demands, leading to consolidation. The DispatchHealth-Medically Home merger demonstrates an effort to strengthen the hospital-at-home model by combining resources and expertise, potentially setting a precedent for further consolidation in the industry.
- The Acute Hospital Care At Home program, which allows Medicare-certified facilities to provide inpatient level care in patients' homes, was created by the CMS in 2020. Recent developments include President Donald Trump signing a short-term government funding bill that extends the program through Sept. 30, along with telehealth flexibilities in Medicare. This expansion of home-based healthcare services in the U.S. aligns with the strategic move of the merged DispatchHealth-Medically Home company to strengthen the provision of hospital-level home care services.
