Dispatch Health Secures $200 Million Series D Funding to Revolutionize On-Demand Emergency Care

Recently, DispatchHealth, a U.S.-based provider of in-home emergency medical services, announced the completion of a $200 million Series D financing round, bringing its total market valuation to over $1.7 billion.

DispatchHealth, formerly known as True North Health Navigation, was founded in 2013 and is headquartered in Denver, the capital of Colorado, USA. It is dedicated to providing comprehensive, convenient, and high-touch in-home emergency care services to patients via mobile units.

 DispatchHealth Financing History Data Source: VCBeat, Crunchbase

To date, DispatchHealth has been deeply entrenched in the healthcare services sector for nearly eight years and has successfully completed five rounds of financing. Why has DispatchHealth consistently attracted investor interest and captured a significant share of the national market?

In 2013, Dr. Mark Prather and Dr. Kevin Riddleberger founded DispatchHealth with a shared vision to redefine the healthcare delivery model and benefit consumers, aiming to provide patients with high-tech, low-cost in-home emergency care services.

Since its inception, the company has focused on developing mobile applications to provide consumers with at-home medical appointment services, aiming to capture market opportunities beyond hospitals and help achieve three major goals:

Lower Medical Costs: DispatchHealth helps reduce the total cost of care for high-risk populations and emergency department patients in non-urgent situations, with projected healthcare savings exceeding $2 billion by 2023.

Lower Hospitalization Rates: Since its inception, DispatchHealth has helped divert over 150,000 unnecessary emergency department visits and 4,400 hospital admissions.

Higher Satisfaction: DispatchHealth, in partnership with its collaborators, provides patients with one-stop at-home emergency care services, maintaining a Net Promoter Score (NPS) consistently above 90.

DispatchHealth officially launched its public-facing iOS mobile application in November 2015, followed by the development of an Android mobile application by the end of the year. By adopting DrChrono as its electronic health record (EHR) system, DispatchHealth provided consumers with multiple channels for service requests, including phone, website, and mobile applications.

In addition to convenient and expedited appointment scheduling, DispatchHealth’s mobile emergency units are equipped with various medical devices, advanced medications, and Wi-Fi capabilities for health information exchange. They also feature the first CLIA-certified (Clinical Laboratory Improvement Amendments) mobile laboratory, enabling physicians to conduct relevant diagnostic tests on-site.

Furthermore, DispatchHealth’s clinicians are recruited from local community healthcare institutions. Patients need only place a phone call or submit an online request; the company then uses algorithms to assess whether its medical team can provide assistance. Upon confirmation, the platform promptly dispatches a medical technician and a physician assistant to the care site. From appointment to in-home treatment, the entire process takes just 1–2 hours.

DispatchHealth has agreements with major payers in each of its service areas, allowing clinicians to bill insurance directly for the care provided during home visits. Insured patients pay a copay ranging from $5 to $50 per emergency visit, while uninsured patients are charged a flat fee of $275—significantly lower than the average cost of thousands of dollars for an emergency department visit at a hospital.

Furthermore, to ensure continuity of care, DispatchHealth provides detailed care reports to each patient’s residential community, home health agency, or primary care physician. If needed, prescriptions can also be electronically transmitted to the patient’s designated pharmacy.

DispatchHealth At-Home Emergency Care Guide | Image source: DispatchHealth official website

DispatchHealth’s at-home emergency care services can significantly reduce patient wait times and save substantial costs on diagnosis and treatment. This model not only breaks away from traditional hospital-based care but also directly addresses the difficulty of accessing medical attention during holidays. The DispatchHealth medical team provides emergency medical services 365 days a year, from 9:00 AM to 9:00 PM daily.

Company CEO Mark stated, “Our medical team is fully prepared for holidays and events. Whether it’s a football game or a family dinner, we can help patients avoid the inconvenience and expense of emergency room visits and get them back to health.”

DispatchHealth’s Disease Treatment Areas | Source: DispatchHealth Official Website

Currently, the therapeutic scope of the DispatchHealth team covers a variety of non-life-threatening conditions commonly seen in emergency departments, such as urinary tract infections, respiratory tract infections, influenza, and asthma. Its service market is extensive, encompassing mobile medical device management, medical imaging, health information integration, and follow-up care.

Since its inception, DispatchHealth has consistently pursued multi-channel collaborations to better deliver healthcare services, partnering with entities including but not limited to local municipal authorities, 911 emergency medical services, health systems, insurance payers, and senior care facilities.

On August 12, 2015, shortly after securing $3.6 million in angel funding, DispatchHealth established its first partnership with Centura Health, a leader among healthcare institutions in the Denver area, and joined the Colorado Health Neighborhoods (CHN) organization.

Centura Health operates 17 hospitals, two senior living communities, and multiple community health clinics across Colorado and western Kansas, with a team of more than 6,000 physicians and 19,400 dedicated healthcare professionals.

DispatchHealth’s in-home care model, combined with Centrua Health’s staffing capabilities, enables both companies to realize their shared vision: providing more patients with the most convenient and comfortable diagnostic and treatment experience at affordable prices. For health systems, this collaboration significantly enhances the quality of inpatient services and effectively alleviates pressure from hospital bed shortages.

Some of DispatchHealth’s Partners | Image Source: DispatchHealth Official Website

In November 2016, DispatchHealth partnered with InnovAge, a leader in advanced care for seniors in Colorado. Since its founding in 1991, InnovAge has been dedicated to the Program of All-Inclusive Care for the Elderly (PACE), aiming to tailor health solutions for older adults so they can remain safely at home for as long as possible.

For elderly individuals, receiving treatment at home is safer than visiting hospital outpatient clinics, as their relatively fragile immune systems may be unable to fend off various viruses prevalent in hospital settings. Consequently, the market for elderly care institutions holds significant growth potential. Seizing this opportunity, DispatchHealth has actively partnered with InnovAge to jointly advance the Program of All-Inclusive Care for the Elderly (PACE), thereby reducing medical costs and lowering healthcare risks for the elderly population.

On February 21, 2019, DispatchHealth entered into a collaboration agreement with Philips to conduct a pilot study leveraging the Philips LifeLine medical alert system, aiming to provide on-demand in-home care services to elderly members of Mercy Care in Arizona, USA.

This system enables instant care connectivity through DispatchHealth. Upon pressing the Philips medical alert button, Mercy Care members can quickly and easily access the assistance they need. Once connected, trained care specialists will provide in-home consultations as outlined in the Philips service agreement, at a total cost that is only one-tenth of a typical emergency room visit.

Riep Martin, General Manager of Philips Aging and Care, stated: “We have long been a core player in the care sector, serving 7 million older adults for over 40 years through a network comprising more than 2,500 hospitals, home health agencies, non-clinical home care providers, and senior living communities. Through our partnership with DispatchHealth, we can not only enhance the healthcare experience for elderly patients but also significantly reduce the substantial costs burdening the entire healthcare system.”

DispatchHealth has always focused on expanding its user base, with the millennial market being a natural priority. For busy young professionals, convenience is key.

When it comes to young people, another major advantage of DispatchHealth is its pricing. As health insurance costs continue to rise, young professionals are well aware of the high cost of living. The average cost of an emergency room visit can reach as high as $2,200, whereas a visit from DispatchHealth costs only about one-tenth of that amount.

CEO Mark stated, “We live in an on-demand service environment where everyone expects to access various services with just a tap on their smartphone. Our services align closely with the expectations of millennials and the shift toward consumer-centric healthcare. The Net Promoter Score (NPS) for our company among younger demographics has never fallen below 90, significantly higher than the healthcare industry average of 30, indicating that millennials highly favor this model of medical care.”

In 1993, Mark, the company’s founder and CEO, immediately entered the healthcare industry after earning his M.D. from the University of California, Los Angeles (UCLA). At the time DispatchHealth was founded, Mark already had 20 years of extensive hands-on experience in clinical care, and he was filled with hope and enthusiasm for transforming healthcare delivery and improving clinical outcomes.

Mark Prather. Image source: DispatchHealth official website

Kevin, another co-founder and Chief Scientific Officer (CSO), also brought a decade of experience in the healthcare industry prior to co-founding DispatchHealth. A results-driven professional, he possesses extensive knowledge and management expertise in clinical practice, product management, marketing, and business operations and development.

Kevin stated, “Our corporate culture stems from our vision to redefine healthcare services. We have a passionate team dedicated to improving our healthcare delivery system. By combining top-tier technology experts with first-class medical professionals, we maintain the flexibility and agility to lead the market, shaping industry trends while providing solutions for market gaps.”

Kevin Riedelberg. Image source: DispatchHealth official website

In addition to its seasoned management team, DispatchHealth’s clinical team demonstrates a high level of professionalism. The platform has been integrated with emergency medical services (EMS) agencies for over seven years, delivering successful, continuous, and valuable care to patients.

All clinical personnel employed by DispatchHealth have completed emergency room (ER) training and obtained relevant certifications. DispatchHealth will continue to optimize its proprietary software and data analytics platform to enhance efficiency, improve clinical outcomes, and generate revenue, thereby enabling a sustainable and compliant ET3–MIH (Mobile Integrated Healthcare) program that provides on-site patient treatment or telehealth services.

DispatchHealth currently operates in Denver, Richmond, Phoenix, Houston, Las Vegas, Colorado, and Oklahoma. Following the successful completion of this funding round, DispatchHealth plans to expand its in-home medical services to more than 100 regions and markets across the United States, ensuring broader access to its advanced care product line for high-need patients of all ages.