Private Equity-Supported Home Care Agencies vs. Locally Owned: Why Private Ownership Is Better
The senior care industry is growing rapidly as families seek trusted, compassionate in-home caregiving services for aging loved ones. Alongside this growing demand, two types of home care agencies dominate the landscape: private equity-backed franchises and locally owned, private agencies.
While both provide caregiving services, there are significant differences in philosophy, operations, and priorities. Understanding these differences is key for families who want the best possible care for their loved ones.
Private Equity-Supported Home Care Agencies: Profit-Driven Models
Private equity (PE) firms invest in home care companies with one primary goal: maximize investor returns. These firms often acquire multiple agencies, consolidate operations, and implement cost-cutting strategies to increase profits.
While this business model may generate financial success, it raises concerns for clients and caregivers alike:
Standardized, impersonal care – Decisions are often made at a corporate level, leaving little room for local adaptation.
Cost-cutting pressures – To increase profits, agencies may reduce caregiver training, limit client services, or pay caregivers less.
High turnover – Lower wages and less support for caregivers often mean higher staff turnover, disrupting continuity of care.
Short-term focus – Private equity ownership often lasts only 3–7 years, prioritizing quick financial gains over long-term stability.
Studies in healthcare more broadly show that private equity involvement can lead to higher costs and lower quality outcomes for patients (American Antitrust Institute, 2021). For seniors who depend on consistent, compassionate support, this model can fall short.
Locally Owned Home Care Agencies: Community-Focused and Compassionate
By contrast, locally owned home care agencies are rooted in their communities. Their mission is not about quarterly profits but about providing personalized, consistent, and compassionate care.
Advantages of locally owned home care agencies include:
Personalized service – Care plans are tailored to each client’s unique needs, not dictated by corporate policies.
Stronger caregiver relationships – Local agencies are more likely to invest in caregiver training, fair pay, and retention, which means families benefit from stable, consistent care.
Community connection – Locally owned agencies understand the specific needs, cultures, and values of the community they serve.
Long-term commitment – Instead of flipping ownership for profit, private owners typically plan to remain in business for years, building lasting trust with clients.
Values-driven care – With no outside investors to answer to, decisions are made based on what’s best for clients and caregivers.
Why Private Ownership Is Better for Families
When choosing between a PE-backed agency and a locally owned one, families should consider what truly matters in caregiving. Home care is about dignity, trust, and relationships. It requires consistency, compassion, and a commitment to long-term well-being—values that align more naturally with locally owned providers.
In a private, locally owned agency:
Clients are treated as neighbors, not numbers.
Caregivers are respected as essential professionals.
Families have direct access to decision-makers who live and work in the same community.
Choosing Care that Puts People First
Private equity-supported home care agencies may bring big business strategies to caregiving, but these models often prioritize profits over people. Locally owned home care agencies, by contrast, are deeply invested in their communities and focused on delivering the compassionate, personalized care seniors deserve.
For families seeking reliable, compassionate support, private ownership remains the better choice—keeping caregiving human, local, and rooted in trust.
📌 Sources:
American Antitrust Institute. Private Equity in Healthcare: Profits Before Patients. 2021.
PHI National. U.S. Direct Care Workforce: Key Facts. 2023.
