National homelessness rates are steadily rising, posing challenges in health care. Homelessness exacerbates health conditions, increasing chronic mental and medical diagnoses, while reducing traditional treatment efficacy Research highlights medical respite care as an effective intervention, improving post-hospitalization outcomes and reducing Emergency Department utilization, hospital stays, and readmissions. This literature review examines various medical respite models and their impact on clinical outcomes, patient experience, and healthcare costs. Different funding approaches are explored, ultimately advocating for shared financial responsibility among multiple stakeholders to ensure sustainable support for these programs.