Following its merger with Medically Home, hospital-at-home leader DispatchHealth has restructured its operations, implementing layoffs, exiting one market and changing service offerings in nine others.

Specifically, DispatchHealth exited Little Rock, Ark. and scaled back services offered in the following markets, according to documents obtained by Home Health Care News: Atlanta, Baltimore, Dallas/Fort Worth, Las Vegas, Los Angeles, Minneapolis, Phoenix, Seattle/Tacoma and Washington, D.C.

The changes, made three months after its merger closed in June, allow the company to simplify operations and grow sustainably, according to DispatchHealth. 

“Following our merger, we’ve been taking a thoughtful look at our combined organization,” the company told HHCN in a statement. “As part of that process, we’ve made the decision to exit one market, wind down certain services in nine others and make other necessary workforce adjustments to match a more focused portfolio. These steps will align our strategy with longer-term company goals and customer priorities.”

DispatchHealth declined HHCN’s request to specify the number of employees laid off.

After its merger with Medically Home, Denver, Colorado-based Dispatch Health operated in 50 metropolitan areas in partnership with almost 40 health systems. As of March 2025, DispatchHealth had treated over 1.2 million people in more than 20 states.  The company has drawn in significant investor interest, raising over $700 million, including a $330 million raise in 2022.

Though DispatchHealth is scaling back some of its offerings, the company said the services that comprise its high-acuity care platform, which include ER-alternative care, hospital-alternative care and transitional care, remain “core to its vision.”

“Our focus remains on delivering great care, in partnership with our customers, in the communities we continue to serve while providing support to teammates impacted by these changes,” the company stated.

While DispatchHealth stated that its high-acuity hospital-at-home services will persist, the lack of a long-term extension for the hospital-at-home waiver has caused other organizations to delay adoption. 

The news of the restructuring comes three months after reports emerged that Medically Home experienced a dramatic drop in valuation and other financial struggles.