Elara, Ares, and DaVita Forge Alliance to Reshape Home Healthcare

DALLAS, TX – February 02, 2026 – Elara Caring, a national home care provider, announced today it has secured a major strategic investment from private equity giant Ares Management and kidney care leader DaVita. The partnership aims to significantly expand access to advanced, personalized in-home care for patients with complex conditions and will pioneer a new care model specifically for individuals with chronic kidney disease.

While the financial terms of the transaction were not disclosed, the move signals a powerful convergence of capital, clinical specialization, and large-scale home health operations. Elara Caring will continue to operate as an independent company led by its current CEO, Ananth Mohan. The collaboration is expected to fuel Elara's next growth phase, enhancing its ability to manage chronic diseases in the home and reduce costly hospitalizations.

A Surge in Home-Based Care

This strategic alliance arrives as the home healthcare industry experiences unprecedented growth. Driven by an aging population, a strong patient preference for aging in place, and a systemic push toward value-based care, the market is rapidly expanding. The global home healthcare market, valued at over $416 billion in 2024, is projected to soar to nearly $748 billion by 2030. This expansion reflects a fundamental shift away from traditional institutional settings toward more cost-effective and patient-centric solutions.

Regulators are also shaping this evolving landscape. The Centers for Medicare & Medicaid Services (CMS) has been adjusting its payment structures, finalizing a modest 0.5% payment increase for 2025 while signaling a potential 1.3% reduction for 2026, underscoring the pressure on providers to operate efficiently. Simultaneously, the continued growth of Medicare Advantage, now covering over half of all beneficiaries, is intensifying the focus on providers who can deliver measurable outcomes and manage total cost of care.

“Too often, home-based care is introduced late in the care journey, significantly impacting outcomes and quality of life, especially with our vulnerable populations,” said Ananth Mohan, Elara Caring CEO. “This collaboration reflects a shared belief that care should be timelier, more personalized, and meet patients where they are most comfortable—at home. Together with Ares and DaVita, we have an extraordinary opportunity to improve the management of chronic conditions and deliver better results for patients and their loved ones as well as our healthcare system overall.”

A Strategic Trifecta

The partnership unites three distinct but complementary forces. Elara Caring brings its vast operational footprint, serving over 60,000 patients daily across 18 states. Ares Management’s Private Equity Group contributes significant capital and a track record of scaling healthcare businesses. DaVita provides deep clinical and operational expertise in value-based care, particularly in managing one of the most complex and costly chronic conditions: kidney disease.

Ares' involvement is consistent with its strategy of backing high-performing companies in core sectors. “Elara Caring is a leading home care platform defined by a commitment to quality and a patient-first culture,” said Kevin Cox, a Partner in Ares’ Private Equity Group. “We’re excited to partner with the Elara team and support their next phase of growth and innovation—expanding access, improving outcomes, and delivering an outstanding experience for patients and team members.”

For DaVita, the investment represents a strategic extension of its mission to provide comprehensive kidney care. The company has long recognized the critical role of supportive services in patient stability. “Through our integrated care programs, we saw meaningful differences in patient outcomes that were closely tied to the quality of home‑based support they received,” explained Steve Phillips, Chief Strategy Officer of DaVita. “Strengthening access to Elara Caring’s exceptional services will help more patients maintain stability at home, avoid unnecessary hospitalizations, and ultimately experience a better quality of life.”

A New Model for Chronic Kidney Disease

A central pillar of the collaboration is the co-development of a specialized home-based care model for kidney patients. Chronic kidney disease (CKD) is a major driver of healthcare costs, with patients experiencing significantly higher hospital readmission rates than the national average. Research has shown that comprehensive transitional care management can dramatically reduce these readmissions.

The new program intends to leverage DaVita’s advanced clinical insights into CKD and Elara's extensive in-home care capabilities. The goal is to create a high-touch, continuous care pathway that supports patients in the comfort of their homes, aiming to proactively manage their condition, prevent complications that lead to hospital visits, and ultimately lower the total cost of care. This initiative builds on the established benefits of home dialysis, which offers patients greater flexibility and has been linked to improved clinical outcomes. By integrating specialized nursing, behavioral health, and personal care services, the model aims to address the holistic needs of this vulnerable patient population.

Market Impact and Future Hurdles

The transaction, which is expected to close later in 2026 pending regulatory approvals, is poised to send shockwaves through the competitive home health market. Competitors like LHC Group and Amedisys will likely face increased pressure to innovate and develop their own specialized chronic care programs. The Elara-DaVita model could set a new industry standard for integrated care, demonstrating a scalable approach to managing high-cost, high-acuity patients outside of the hospital.

However, the path forward involves navigating significant regulatory and integration hurdles. Gaining approval from federal and state bodies for such a significant partnership is a complex process. Furthermore, the successful integration of DaVita's clinical protocols with Elara's diverse service lines will require meticulous planning and execution, from aligning technology platforms to training a cross-functional workforce. The success of this venture could serve as a powerful blueprint for future collaborations between private equity, specialized providers, and home health agencies, accelerating the industry-wide shift toward a more integrated and value-driven healthcare system.