Private Equity Pours Billions Into Home Healthcare Amid Rising Demand

Private equity firms are pouring capital into home-based healthcare, betting that in-home services will cut costs, improve patient satisfaction, and deliver steady returns. From telehealth platforms to in-home personal care services, investors are racing to consolidate a sector that proved indispensable during the pandemic, and is now growing.

But this boom comes with risk and may be facing headwinds. Looming cuts to Medicare and Medicaid—key sources of reimbursement—could unravel the economics behind these deals. For healthcare entrepreneurs and investors, the question is whether the push to scale and streamline care will deliver long-term benefits for patients or merely short-term gains for investors.

The model is appealing on multiple fronts. Home-based care is approximately 30 percent cheaper than institutional care and is expected to grow at 8.5 percent annually, according to industry estimates. Patients increasingly prefer receiving care in familiar environments, and investors are eager to capitalize on that demand.

Help at Home backed by Centerbridge Partners and the Vistria Group, is one example. In May 2025, it acquired Florida-based Home Care Now, extending its footprint to every county in the state. According to the Private Equity Stakeholder Project, the deal is one of at least 20 acquisitions Help at Home has made since 2020.

Pharos Capital Group, a physician-founded private equity firm, also extended its reach into home-based care through an investment in Sanderling Renal Services in 2022. The company delivers both in-center and home dialysis services across rural and underserved areas using remote monitoring. Pharos noted that Sanderling’s model “bridges inequities in care,” supporting home healthcare expansion into hard-to-reach communities while improving patient outcomes.

Pharos says it was drawn to the sector by both the business opportunity and the potential to lower costs while improving patient outcomes.

“Lower cost and better relationships tend to lead to improved outcomes for patients, both through better compliance with treatment protocols and from the ability of the clinician to identify concerns within the social determinants of health care,” said Kneeland Youngblood, MD, Pharos’ Founding Partner, Chairman and CEO, and Bob Crants, Founding Partner and Chief Investment Officer, in a joint statement.

Staffing and Quality: Key Challenges for Scale

But maintaining quality across a growing portfolio of providers isn’t easy.

Executives at Pharos said, “Staffing is the largest challenge associated with home care. Turnover tends to be higher than in other sectors and the interpersonal skills of the clinician become much more important than in a facility setting.”

They added that Pharos’ strategy includes intensive investments in recruitment, training, compliance, and company culture.

“Patients can switch a home-based caregiver much easier than they can switch a hospital or nursing home,” they said, emphasizing that strong patient relationships and consistency are key to long-term success.

Waud Capital Partners is another firm doubling down on home care. In 2024, it acquired Senior Helpers, a Maryland-based company with more than 380 franchised and corporate-owned locations across the U.S., Canada, and Australia. The company provides a wide range of non-medical services, including personal care, companionship, and specialized support for Alzheimer’s and Parkinson’s.

“The need for high-quality, in-home senior care has never been greater,” said Peter Ross, CEO and co-founder of Senior Helpers in a press release. He said the Waud partnership would allow the company to expand its services as part of the next phase of growth.

Waud followed that move in April 2025 with the acquisition of MedTec Healthcare, an Illinois-based provider of personal care and adult day services. That deal is part of a broader strategy to consolidate its home care assets under a new holding company called Altocare.

“MedTec Healthcare’s dedication to quality and its strong market presence align perfectly with our mission,” said Steve Jakubcanin, an Executive Partner at Waud Capital and now executive chairman of Altocare. “This acquisition represents a significant step in our vision to create a leading home care platform that delivers best-in-class care.”

Altocare will also house other Waud-backed providers, including Concierge Home Care, PromptCare, and CarePoint Partners.

Will the Boom Survive Policy Shifts?

Medicare and Medicaid continue to play a central role in home care’s financial viability. Historically, both programs have provided consistent reimbursement streams that made the sector attractive to private equity.

“Medicare Advantage and Medicaid are both looking for the best outcomes at the lowest cost, so home care is particularly appealing,” said Youngblood and Crants from Pharos. “Growth in either of those spaces can add to growth in home care.”

But that foundation could be shaken. Proposed cuts to both programs under a second Trump administration could undercut the revenue models PE firms depend on. Lower funding would mean smaller reimbursements for home-based services, shrinking margins and increasing financial risk for providers, particularly those backed by investors expecting steady returns. A reduction in public spending could also leave hospitals, nursing homes, and community health centers absorbing more of the cost of treating uninsured patients, many of whom would otherwise receive services at home.

The road ahead for PE in home care will depend not just on consolidation strategies or operational efficiencies, but on whether the business can adapt to shifting public priorities without compromising care for the people it’s meant to serve.