A week after DispatchHealth and Medically Home closed the merger, reports revealed that medically the home had experienced a decline in assessments and other financial struggles.
The 498-page document, which was accidentally sent medically to an employee of a home and then leaked to Axios, showed a “dramatic” loss in the rating, according to the outlet. High-acuity's home health provider reportedly survived only through cash injections from investors Mayo Clinic and Kaiser Foundation Hospitals.
Axios also reported that top executives and investors benefited from the transaction, resulting in a “partial liquidation.”
DispatchHealth has declined to request home health news for comments regarding the reporting of loss of ratings or other details mentioned in the Axios Stories.
“We have not commented on sensitive business information or third-party speculations,” DispatchHealth said in an email.
Based in Denver, Colorado, DispatchHealth offers advanced home health care. Founded in 2013, the company deals with over 1.2 million people in over 20 states. The company has raised more than $700 million, including a $330 million salary increase in 2022, attracting great interest from investors.
Based in Boston, we are medically at home and partner with our organization to help provide home-based, hospital-level services and emergency department services. According to Pitchbook, the company raised a total of $287 million, including the $110 million round in 2022.
Medically, Home and DispatchHealth announced plans to merge in March. The deal was a “confidence vote” for the home hospital model, and then the CEO of medically home Graham Burns previously told HHCN.
“By combining DispatchHealth with Medically Home, we probably talk about 20,000 admissions each year,” Barnes says. “It remains very important that these are not pilot programs, and this is a way to expand the program and provide a critical census of patient volume, but a drop in buckets for acute patients who have been admitted to hospitals.”
The new combined company is currently operating under the DispatchHealth brand.
