On March 17, it was announced that DispatchHealth and Medically Home entered into an agreement to merge. Once the deal closes, Medically Home will become part of DispatchHealth.
Medically Home is a technology-enabled services company that provides the clinical intellectual property, technology platform and coordination of acute rapid-response services. This allows medical providers to shift advanced medical care from hospitals to patients’ homes.
DispatchHealth provides on-demand acute care and an advanced level of medical care for people of all ages in the comfort of their own homes. The company works closely with payers, providers, health systems, EMS, employer groups and others to deliver care in the home to reduce unnecessary emergency room visits, hospital stays and readmissions.
The merger is expected to close mid-year 2025, subject to customary closing conditions and regulatory approvals. The terms of the definitive agreement were not disclosed. The combined entity will extend care into the homes of patients across 50 major metropolitan areas in partnership with nearly 40 health systems, as well as most major health plans and value-based care entities.
MTS Health Partners is serving as financial advisor to DispatchHealth. Wilson Sonsini Goodrich & Rosati, and Polsinelli are serving as legal advisors to DispatchHealth. Cooley LLP is serving as legal advisor to Medically Home.
“Healthcare demands innovative solutions that align clinical excellence with financial sustainability,” said Jennifer Webster, CEO for DispatchHealth. “We’ve proven the home can be an extension of the hospital while improving the quality of care. This merger brings together two complementary pioneers in hospital-level care at home, accelerating our ability to expand access, lower costs, drive value, and improve capacity for health systems across the country.”
According to the press release, this merger comes as healthcare costs rise, hospitals face capacity challenges, and demand for hospital-at-home services surges, with the market expected to reach $300 billion by 2028.
The combined entity will provide everything from same-day medical care to complex hospital-level treatment at home, improving outcomes and cutting costs by up to 30% over 30 days. With expanded capabilities, it could free up more than 62,000 bed days, easing strain on health systems and enhancing patient access to quality home care.
According to data in the LevinPro HC database, this marks the 65th eHealth transaction of the year, and the second in the care coordination specialty. There were six care coordination transactions announced in 2024, and nine announced in 2023.
