# DispatchHealth Financial Model

On-demand, in-home acute and advanced care platform replacing ER/hospital visits with mobile clinical teams.

- Canonical: https://finamodel.com/startups/dispatchhealth
- Excel download: https://finamodel.com/startup-models/dispatchhealth.xlsx
- Category: Health-tech
- Model type: SaaS ARR / Valuation
- Funding round: Series D
- Funding: $200M
- Founded: 2021
- Geography: US; 31 markets live [DECK slide 4].
- Customer: B2B2C

## About the company

DispatchHealth delivers acute and advanced care in patients’ homes through mobile clinical teams, seeking to replace avoidable ER and hospital visits. It operates several care programmes, including acute, extended, bridge, and clinic-without-walls services.

Revenue is tied to payer and provider reimbursement for visits or bundled episodes rather than software subscriptions. Market expansion requires building local clinical and dispatch capacity before care volume can scale.

The model should forecast markets, visits and episodes by service line, reimbursement per episode, payer mix, and repeat use. Clinical labour, vehicles, supplies, dispatch, fixed market launch cost, and collections timing should drive the services P&L.

## What's included

- 5-year monthly revenue build with stage-appropriate growth assumptions
- Full P&L, headcount plan, and operating-expense schedule
- Cash-flow statement, runway, and burn-rate tracking
- Valuation via exit multiple with a DCF cross-check
- Returns analysis with MOIC and IRR
- Unit economics including CAC, LTV, payback, and cohort retention

## Product & value proposition

Five care tiers delivered in the home:
1. **Clinic Without Walls** - virtual visit augmentation; extends provider reach to home/senior communities for lower-complexity complaints.
2. **Acute Care** (ER Alternative) - on-demand high-acuity care; on-site diagnostics, CLIA-certified lab, procedures, medications, PCP integration.
3. **Advanced Care** (Hospital Alternative) - conditions: HF, COPD, pneumonia, complex UTI, metabolic disorders; Milliman admission criteria; up to 30-day post-acute management; payer bundle payment.
4. **Extended Care** (Nursing Facility Alternative) - complex medical/post-surgical patients post-discharge; 24/7 skilled care incl. PT/OT; payer bundle payment.
5. **Bridge Care** (Hospital-to-Home) - 24–72 hr post-discharge intervention; medication reconciliation; targets reduced hospital recidivism.

Value prop quantified: in-home hospitalizations save $5,000–$7,000 per episode vs. facility; 20% mortality reduction cited.

## Market

- Total US healthcare system: $4T.
- Facility-based spend (TAM proxy): $1.3T.
- Addressable in-home market (SAM): $140B.
- DispatchHealth current market (SOM): $85B - described as "Dispatch Market Today" (likely the acute/advanced care segments currently served or actively targeted).
- Growth tailwinds: virtual care utilization +4x during COVID; +70% of users expecting to continue using more convenient care.

## Revenue model

Payment mechanisms implied by the service tiers:
- **Acute Care**: fee-for-service or per-visit reimbursement via payer contracts (insurance, Medicare/Medicaid likely, though not stated explicitly).
- **Advanced Care + Extended Care**: contractual bundle payments with payers.
- **Bridge Care + Clinic Without Walls**: payer/provider contracts implied; mechanism not detailed.
- Customer savings metric: +$1,200 average savings per acute care visit generated for customers (payers/health systems) - suggests shared-savings or value-based contract structures possible.
- No explicit pricing per visit, episode rate, or contract value disclosed in this deck.

## Traction & metrics

All from:
- 31 markets live at time of deck.
- 174% YE Run-Rate Revenue CAGR since 2017.
- Net Promoter Score: 96 (healthcare average <30).
- +$350M total savings generated for customers to date.
- Average savings of +$1,200 per acute care visit.

No absolute revenue figure, visit volume, patient count, or specific year of deck disclosed.

## Unit economics

- Savings per acute care visit: +$1,200 for payer/health system customers.
- Episode savings vs. facility: $5,000–$7,000 per in-home hospitalization.

## Competition / moat

Not explicitly addressed in the 5-slide deck. Implied moats:
- Clinical breadth (5 care tiers from acute to post-acute is a meaningful scope vs. point-solution competitors).
- NPS of 96 vs. healthcare average <30 - strong retention signal.
- Purpose-built platform enabling "rapid scaling".
- No competitor names, market-share data, or explicit differentiation section in this deck.

## Team & funding ask / use of funds

---

## Recommended financial model

**Archetype + why:**
Multi-revenue-stream healthcare services P&L with visit/episode volume as the primary driver. The business is fundamentally a volume × reimbursement-rate model across service lines, with a cost structure that is largely variable (clinical staffing, dispatch, supplies) plus market-expansion fixed costs. Closest archetypes: **healthcare services 3-statement model** with a visit-volume revenue build, layered across markets (geo × service-tier matrix). Value-based bundle contracts add an episode-cost layer. Not SaaS, not marketplace - this is a clinical services business.

**Forecast horizon & granularity:**
- 5-year annual model (Year 1–5), monthly in Year 1 given growth-stage volatility.
- Market-by-market ramp (cohort logic: markets open in different quarters, each with an S-curve ramp to maturity).

**Key drivers & assumptions:**

*Revenue:*
- Number of markets: 31; +8–12 new markets/year based on 174% CAGR and stated scaling ambition.
- Visits per market per month: ~500–1,500 acute care visits/month at maturity; new markets ramp over 12–18 months.
- Blended reimbursement per acute care visit: ~$400–$700 based on ER-alternative positioning (Medicare/Medicaid + commercial payer mix); deck states $1,200 savings per visit for customer, so reimbursement likely a fraction of that delta.
- Bundle revenue per advanced/extended care episode: ~$3,000–$8,000/episode; deck cites $5,000–$7,000 facility savings as benchmark.
- Service-line mix: Acute Care majority (~60–70%), Advanced Care growing, Bridge/Extended/Virtual smaller; adjust as data available.

*Costs:*
- Clinical staffing (clinicians, nurses, EMTs per team): primary COGS driver; ~50–65% of revenue.
- Dispatch/logistics (vehicles, supplies, dispatch ops): ~10–15% of revenue.
- Market G&A overhead: fixed cost per market of ~$200–500K/year for non-clinical ops.
- Corporate overhead (tech platform, G&A, S&M): leverage over time as markets scale.

*Operational:*
- Market maturation timeline: 18–24 months to breakeven at market level.
- Revenue CAGR: 174% historical; decelerates to 80–100% near-term as base grows, then 40–60% mid-period.

**Scenarios (Base / Bull / Bear):**
- **Base**: 31 → ~55 markets in 3 years; acute care volume grows at ~80% p.a.; bundle contracts ramp.
- **Bull**: faster payer contract wins; hospital-at-home tailwinds (CMS Acute Hospital Care at Home waiver) drive Advanced Care volume 2×; market ramp to maturity in 12 months.
- **Bear**: payer reimbursement compression; slower market expansion (regulatory, clinical hiring); acute care volume stays flat in early markets.
- Flex variables: new markets opened per year, visits/market/month at maturity, blended reimbursement rate, clinical staff cost per visit.

**Required sheets / outputs:**
1. **Market cohort build** - markets opened by quarter × monthly visit ramp curve → visit volume per market.
2. **Revenue build** - visit volume × reimbursement by service line (Acute, Advanced, Extended, Bridge, Virtual).
3. **COGS / contribution margin** - clinical labor + dispatch/supplies per visit; gross profit by service line.
4. **Market P&L** - contribution margin minus market-level fixed costs → market-level EBITDA; breakeven month per cohort.
5. **Corporate P&L** - S&M, tech/platform, G&A, R&D over the forecast period.
6. **Consolidated 3-statement** - IS, BS, CF; cash runway if raise amount known.
7. **KPI dashboard** - total markets, total visits/month, revenue/visit, NPS (static), savings generated (for customer storytelling).
8. **Assumptions sheet** - all inputs clearly flagged; scenario toggle.

## Frequently asked questions

### Is the DispatchHealth financial model free?

Yes. The DispatchHealth model is a free Excel download with live formulas.

### Can I change the assumptions?

Yes. The workbook is editable and its live formulas recalculate when assumptions change.