Staffing Crisis Solutions: Portfolio Approach to Home Care’s Biggest Challenge

Staffing represents “the largest challenge associated with home care,” according to private equity executives at Pharos Capital Group, a reality that shapes every investment decision in the sector. Waud Capital Partners has assembled a portfolio addressing this challenge through multiple approaches, from franchise models that distribute recruitment burden to technology investments that improve caregiver retention.

The staffing crisis in home healthcare exceeds challenges faced in facility-based care. Turnover rates routinely surpass 75% annually, while demand for services grows at 8.5% per year. Pharos Capital executives Kneeland Youngblood, MD, and Bob Crants explained the unique dynamics: “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.” This combination of high turnover and skill requirements creates operational complexity that many investors underestimate.

Multi-Pronged Recruitment and Retention Approach

Waud Capital’s approach to staffing challenges draws from lessons learned across seven home care investments. The Senior Helpers franchise model, acquired in March 2024, distributes recruitment responsibilities across 380+ franchise partners who understand local labor markets. Each franchisee maintains relationships with community colleges, vocational programs, and local recruitment channels that would be difficult for a centralized corporation to replicate.

The April 2025 acquisition of MedTec Healthcare added another dimension to workforce planning. MedTec specializes in culturally and linguistically tailored services, attracting caregivers from diverse communities who connect with specific client populations. This targeted approach to both caregiver recruitment and client service creates natural retention advantages through cultural alignment and community connection.

Steve Jakubcanin, Executive Partner at Waud Capital Partners and Executive Chairman of Altocare, brings decades of operational experience to workforce challenges. His background includes leadership roles at companies that successfully scaled while maintaining care quality, requiring sophisticated approaches to recruitment, training, and retention. Under his guidance, the platform has invested heavily in caregiver support systems and professional development opportunities.

Technology and Training Investments

The technology investment approach pioneered by Reeve Waud at other healthcare platforms provides a template for addressing staffing challenges. At Acadia Healthcare, which Reeve Waud founded in 2005, the company invested approximately $100 million in technology improvements that enhanced both patient care and staff efficiency. Similar investments at Altocare focus on caregiver-enabling technologies rather than caregiver-replacing automation.

These technologies include sophisticated matching algorithms that pair caregivers with compatible clients based on skills, preferences, and geographic proximity. Mobile applications streamline scheduling, documentation, and communication, reducing administrative burden that contributes to caregiver burnout. Remote training platforms enable continuous education without requiring travel to centralized facilities, particularly important for franchisees operating in rural markets.

Pharos Capital’s approach provides useful comparison: “intensive investments in recruitment, training, compliance, and company culture.” This comprehensive approach recognizes that staffing solutions require more than competitive wages. Caregivers seek professional development, schedule flexibility, and meaningful work that technology and training can enhance but not replace.

Cultural and Recognition Programs

The Fortune magazine recognition of Senior Helpers as one of 2025’s Best Workplaces in Aging Services validates the cultural component of Waud Capital Partners’ workforce approach. This achievement, occurring shortly after the Waud Capital acquisition, suggests that private equity ownership need not compromise workplace culture.

Reeve Waud’s investment philosophy, developed over three decades and 500+ acquisitions, emphasizes partnering with existing management rather than imposing new leadership. This continuity helps preserve organizational culture that attracts and retains quality caregivers. Peter Ross, CEO of Senior Helpers, remains in his role post-acquisition, maintaining relationships with franchisees and corporate staff who drive recruitment success.

Kyle Lattner, Partner at Waud Capital, articulated the firm’s commitment to workforce development: “We are excited to partner with Steve, Peter, and the Senior Helpers team to continue providing best-in-class client care and exceptional support to our franchisee partners.” This support extends beyond financial capital to include best practice sharing, technology resources, and operational expertise that help franchisees compete for scarce caregiver talent.

Competitive Advantages Through Scale

The consolidation of multiple home care assets under the Altocare umbrella creates staffing advantages unavailable to smaller operators. Shared training resources, technology platforms, and recruitment expertise benefit all portfolio companies. Caregivers gain career advancement opportunities across a larger organization, improving retention for those seeking professional growth.

As Reeve Waud continues building the Altocare platform, the multi-faceted approach to staffing challenges demonstrates sophisticated understanding of operational realities in home healthcare. Rather than viewing workforce issues as problems to minimize, the approach treats human capital as the fundamental asset requiring continuous investment. This philosophy, consistent with Reeve Waud’s approach throughout his investment career, positions Altocare to compete effectively for caregivers while building sustainable competitive advantages through superior workforce management.