DispatchHealth, Medically Home merge into single home healthcare provider

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DispatchHealth and Medically Home have entered into a definitive agreement to merge, creating a single provider of medical care at home.

Once the deal closes, Medically Home will become part of DispatchHealth. 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, the organizations said.

“This merger unlocks a future where high-acuity care at home is the new standard,” Dr. Mark Prather, cofounder and executive chair of the board for DispatchHealth, said in a statement.

WHAT’S THE IMPACT?

To illustrate patients’ increasing preference for receiving care at home, the companies cited Chilmark research showing that the hospital-at-home market is projected to reach $300 billion by 2028, driven by improved patient outcomes and cost efficiency.

The combined entity, they said, will be positioned to deliver services such as same-day medical care for serious health concerns, and complex, hospital-level care in the home. The organizations said they will aim to reduce the total cost of care by up to 30% over a 30-day period.

With expanded capabilities, the combined organization could free up more than 62,000 bed days, easing strain on health systems, the companies said.

“For many patients, the best hospital bed is the one at home,” said Medically Home CEO Graham Barnes. “By joining forces with DispatchHealth, we’re creating a stronger, more integrated model that will enable more patients, providers, and health systems to embrace high-acuity home-based care with confidence.”

The merger is expected to close midyear. The terms of the definitive agreement between the two companies were not disclosed.

THE LARGER TREND

The home care and hospice market is growing along with an aging population. 

Reflecting the growing demand for home care services, home health volumes are expected to increase 22% by 2034, according to a November report from Research and Markets.

ON THE RECORD

“Hospital-at-home has consistently demonstrated better outcomes, and we believe every patient – regardless of where they live – deserves access to that level of care,” said Pippa Shulman, chief medical officer and chief strategy officer, Medically Home. “This merger allows us to break down barriers, reaching more families in underserved communities with high-quality, advanced medical care in their homes.”

Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.