On Tuesday, two leading hospital-at-home providers made a significant announcement regarding their plans to merge, a strategic move that aims to establish the most comprehensive platform for delivering high-acuity care directly in patients’ homes. This merger is expected to redefine the landscape of home healthcare by enhancing accessibility and quality of care for patients.
DispatchHealth, a prominent player based in Denver, is set to acquire Medically Home, which operates out of Boston. Together, the newly formed entity will extend its in-home healthcare services across 50 major metropolitan areas, collaborating with nearly 40 renowned health systems. This expansive reach will significantly improve access to critical healthcare services.
Founded in 2013, DispatchHealth specializes in providing urgent and acute care directly within the patient’s home environment. The company utilizes an advanced technology platform that facilitates diagnostics and treatment while ensuring seamless coordination with health systems, payers, and primary care providers. This innovative approach allows for effective, immediate care without the need for hospital visits.
Medically Home, established in 2016, has pioneered a unique technology and services platform that empowers hospitals to treat various conditions at home, including those with high acuity like heart failure, pneumonia, and cancer. This capability transforms how healthcare is delivered, enabling patients to receive high-quality care in a more comfortable and familiar setting.
DispatchHealth’s CEO, Jennifer Webster, praised Medically Home as a “true pioneer” in the hospital-at-home sector in a recent email to MedCity News. She highlighted that Medically Home partners with some of the nation’s most prestigious health systems, such as Mayo Clinic, Kaiser Permanente, and Cleveland Clinic, reinforcing its credibility and operational excellence in the industry.
“What sets Medically Home apart is the unmatched depth of their capabilities in technology, logistics, and support services, making hospital-level care feasible outside traditional hospital environments. More critically, they align with our mission of prioritizing patients and delivering high-quality care that meets the objectives of our partners. This shared commitment made the decision to merge straightforward,” stated Webster, emphasizing the strategic synergy between the two organizations.
The merger will unify both companies’ technology, logistical workflows, and clinical expertise, enabling the new entity to significantly expand the provision of in-home high-acuity care beyond its current limits. This integration will create a more robust framework for delivering essential healthcare services directly to patients’ residences.
The combined organization will offer a comprehensive array of services, ranging from same-day triages for urgent health issues to complex hospital-level care within the comfort of patients’ homes. This broad spectrum of services aims to address various healthcare needs effectively.
Upon finalizing the acquisition of Medically Home, DispatchHealth is projected to free up over 62,000 hospital bed days annually, which underscores the potential impact of this merger on the healthcare system. This shift will allow hospitals to allocate resources more efficiently while enhancing patient care.
Webster also indicated that this acquisition is poised to establish a new benchmark in risk-sharing arrangements, integrating health systems, payers, and high-risk patients within value-based care models. This innovative approach is crucial for adapting to the evolving landscape of healthcare delivery.
The announcement regarding DispatchHealth’s acquisition comes at a time when the long-term future of the federal hospital-at-home program remains uncertain. Recently, Congress extended the program, which permits Medicare-certified hospitals to provide inpatient-level care in patients’ homes, but only for an additional six months, raising questions about sustainability.
Pippa Shulman, the Chief Medical Officer and Chief Strategy Officer at Medically Home, expressed to MedCity News that a long-term extension of this program would be critical for enhancing the availability of hospital-at-home care, which is increasingly vital in today’s healthcare environment.
She pointed out that although both her organization and DispatchHealth deliver at-home care independently of the temporary waiver, there is an optimistic outlook for a favorable long-term decision once the waiver expires in September. This potential decision could significantly influence the future of home healthcare.
The evidence supporting hospital-level care at home is compelling—patients receiving such care experience fewer complications, improved outcomes, and higher satisfaction rates for both themselves and their caregivers. Additionally, hospital-at-home care alleviates capacity constraints in hospitals and reduces overall healthcare costs. With an aging population and a rising demand for complex care delivered in the comfort of home, this merger aligns perfectly with current healthcare trends and needs,” Shulman elaborated.
The deal is anticipated to be finalized around mid-2025, although the specific financial terms of the merger have not been disclosed at this time. This strategic partnership signals a transformative shift in the delivery of healthcare services.
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