Hospital-at-Home Platform Vendors to Merge

With the hospital-at-home waiver extended six months through the recently passed Continuing Resolution in Congress, two of the largest vendors in the space have agreed to merge. 

When Medically Home becomes 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 market for hospital at home is projected to reach $300 billion by 2028.

The companies said the combined entity will be positioned to deliver everything from same-day medical care for serious health concerns to complex hospital-level care in patients' homes—improving outcomes while reducing 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 while improving patient access to high-quality care at home, they said. 

"This merger unlocks a future where high-acuity care at home is the new standard," said Mark Prather, M.D., co-founder and executive chair of the board for DispatchHealth, in a statement. "We're combining decades of expertise to create a seamless, scalable model for hospital-level care at home—bringing the right care to the right place at the right time for more people." 

"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. This merger allows us to break down barriers, reaching more families in underserved communities with high-quality, advanced medical care in their homes," said Pippa Shulman, D.O., M.P.H., chief medical officer and chief strategy officer for Medically Home, in a statement.

Both Mayo Clinic and Kaiser Permanente were strategic investors in Boston-based Medically Home. 

Although terms of the deal were not disclosed, the merger is expected to close mid-year 2025, subject to customary closing conditions and regulatory approvals.

Meanwhile, hospital-at-home advocates will continue to urge Congress for a longer-term extension to both telehealth and hospital-at-home Medicare coverage.

“By including these provisions in this stopgap legislation, Congress sent a very clear message that telehealth is a fundamental part of care delivery, and that we must not reverse the significant progress made in modernizing our healthcare system,” said Kyle Zebley, executive director of ATA Action, in a statement. “At the same time, the shortened duration of the extensions included are an impediment to long-term certainty, and the exclusion of other essential telehealth programs that expired or were absent from the final bill continues to prevent millions of individuals from accessing needed care. We must fix this, for the sake of patients, clinicians and our ailing healthcare system.”