Layoffs Hit At-Home Care Innovator DispatchHealth

DispatchHealth — one of the most successful startups in the home-based care space over the last decade — has reportedly laid off 88 employees.

The company itself would not confirm the number of employees laid off.

“We are focused on supporting our patients and our mission to deliver trusted, compassionate care in the comfort of home,” a company spokesperson wrote to Home Health Care News in a statement. “We recently said goodbye to some valued team members and are committed to supporting them through this transition with respect and care. These difficult decisions were made with careful consideration and to maintain the company’s leading position caring for high-need patients at home.”


The Denver Business Journal reported the company laid off “88 people in its corporate staff,” according to three former employees who were a part of the layoffs.

DispatchHealth was founded in 2013 and started as a digital health care company that offered on-demand, on-site services at home. The company now provides a range of health care services to patients in their homes — aiming to prevent costly hospitalizations and emergency room visits.

Initially known for in-home urgent care, DispatchHealth has expanded its services over the years, most recently launching a dedicated hospital-at-home program.


Four years after the company was founded, Alta Partners and Questa Capital co-led a $30.8 million funding round that propelled DispatchHealth into its first major growth window.

The company continued to steadily grow as it doubled down on value-based care efforts as a strategic partner in the post-acute space.

It was also able to take advantage of the dollars that were being funneled into the in-home care space during the early days of the COVID-19 pandemic. In June 2020, the company landed $135.8 million in growth capital, with Optum Ventures leading the Series C round.

Then, in late 2022, it announced a funding round of over $330 million.

Since launching in 2013, it has raised more than $700 million in funding, and, at one point, boasted a valuation of $1.7 billion, according to the company.

DispatchHealth works with several large health systems, provider groups and insurers, including commercial, Medicare Advantage (MA) and managed Medicaid plans, as well as traditional Medicare and Medicaid.

Humana Inc. (NYSE: HUM) has also been one of DispatchHealth’s biggest backers.

DispatchHealth was seen as a venture capital darling in the heyday of 2021. The recent layoffs track with macro VC trends, however.

Source: CB Insights

Venture investors have recently been exercising caution with their investments, according to analysis done by CB Insights.

Instead, VC backers are prioritizing due diligence and reducing the number of deals compared to the tech boom of 2021 and early 2022.

Source: CB Insights

In the fourth quarter of 2023, total deals to US-based companies hit a 10-year low of 2,182. Digital health companies have seen a similar downward trend.

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