Healthcare

[Updated] DaVita, Ares Investment In Elara Caring Sets In-Home Kidney Care Proof Point

This article is a part of your HHCN+ Membership

Editor’s note: This piece has been updated to clarify that, if the deal is signed, the Elara Caring/DaVita care model would not include in-home dialysis. After publishing, I received more information about the model from DaVita, specifically that DaVita would serve in an advisory capacity to Elara Caring as the provider develops a care program designed for the in-home care needs of patients with kidney disease. In the Update below, I make a prediction that this deal, in which a large kidney-focused provider invests in an in-home care provider, will move the needle on other aspects of in-home, kidney-focused care: namely, in-home dialysis. This is my own thinking and does not reflect any current plans for in-home dialysis involving DaVita, Ares and Elara Caring.

Earlier this week, Elara Caring announced a strategic investment from two publicly-traded entities: Ares’ Private Equity Group (NYSE: ARES) and DaVita (NYSE: DVA).

Of course, this sparks my imagination about what we will see from Elara Caring, now that the company is operating with new backing. But the investment’s details have far wider relevance than for Elara Caring alone.

One of the investors, DaVita, is a kidney care-specific health care provider. While private equity-backed deals are common across the home-based care industry, this category of investor stands out. It represents a new high-water mark of a trend that has grown across the home-based care industry – and will help shape its future.

As the center of health care has increasingly shifted into the home, services like in-home dialysis have become increasingly attractive to payers and a more viable option for patients – though only 14% of patients on dialysis use at-home options, as of 2024.

Home health providers are a key component of how that percentage will rise. The Elara Caring deal is proof, and marks a new era for kidney-focused in-home care.

In this week’s HHCN+ Update, I’ll share my key takeaways from the Elara Caring deal and insights into the in-home dialysis market, including:

  • What the deal means for Elara Caring
  • The opportunity for home health providers
  • What it means for disease-specific care

Elara Caring’s horizons

Elara Caring’s CEO, Ananth Mohan, previously told HHCN that the company is bullish on acquisitions as a means for growth.

“I see [M&A] increasingly in our future,” Mohan said in July 2025, after being promoted from chief operating officer to CEO. “There will be a number of smaller agencies that will see the benefit in joining our platform, so we see opportunity.”

That “increasingly” is sure to jump into hyperdrive with the Ares/DaVita deal. In its release about the deal, Elara Caring said that the investment would support the company’s next phase of growth, using Ares’ experience growing health care businesses and DaVita’s experience in value-based care. The company also stated that the organizations would work to develop new care models and clinical programs.

So a multi-pronged strategy will soon commence, including clinical and reimbursement components and growth through M&A.

But I’ll be watching the company’skidney‑focused home‑based care mode with special interest.

The deal included a plan to create such a model, using Elara Caring’s clinical capabilities and DaVita’s kidney disease expertise. The program will aim to reduce hospitalizations and lower total cost of care.

“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,” Steve Phillips, chief strategy officer of DaVita, said in a statement. “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.”

DaVita’s part in this investment, to me, marks the official realization of a growing trend: home health providers partnering with kidney-care companies. The trend of kidney-focused in-home care is not new, but the Elara Caring deal cements that home health providers have a role in this wave of the future.

In-home dialysis momentum

Major players have entered the in-home dialysis market. CVS (NYSE: CVS) began a clinical trial of a home hemodialysis system in 2019. Studies on the system continued into 2025.

There is also federal-level support for kidney care innovation. In 2019, under the first Trump administration, the U.S. Department of Health and Human Services (HHS) and the Centers for Medicare & Medicaid Services (CMS) proposed a series of new payment models for certain kidney-related conditions, which experts said would expedite adoption of in-home dialysis.

In-home dialysis has also received attention from lawmakers. In 2024, a bipartisan group of Congressional lawmakers introduced the Improving Access to Home Dialysis Act to the U.S. House of Representatives. The aptly-named legislation would provide trained, professional staff to patients in the home and ensure that patients understand the availability of in-home dialysis.

“Individuals with end-stage renal disease are often faced with difficult decisions when choosing where to receive dialysis services,” Mariannette Miller-Meeks, R-Iowa, who was among the lawmakers who introduced the bill, said in a 2024 statement. “In rural areas, some patients must forgo a full-time job or time with their family to travel hours back and forth to dialysis centers to receive the life-sustaining care they need. Home dialysis is a wonderful tool that allows patients to be at the center of their own care, and Congress should be working to ensure patients that choose this modality receive the training necessary to dialyze safely in their home.”

Investors have also demonstrated their interest in home-based kidney care. Somatus, a value-based, home-focused primary care management provider for patients with kidney and heart disease, has raised over $500 million. The company boasts that its population health program had a 48% higher home dialysis start rate than national benchmarks. Monogram Health, a value-based, in-home provider for patients with polychronic conditions including kidney disease, has raised a total of $542 million, according to Tracxn.

Crucially, there is room for at-home care partnerships with these well-funded specialty care providers.

“We need clinically integrated partnerships with home health companies,” Mike Uchrin, the CEO of Monogram Health, previously told HHCN. “For instance, at any given time, an individual with a late-stage chronic kidney disease will have a wound. About 10% of our population at any given time has an active wound. We need effective home health companies to come in and deliver that wound care. We need those skilled nurses to come into the home and deliver that immediate care.”

Elara Caring’s move to potentially develop a kidney disease-specific program demonstrates that the time to engage with disease-specific care is now. I personally think we’ll see more in-home dialysis partnerships in the future, as disease-specific care expands and support for in-home dialysis grows. By partnering with a major dialysis provider like DaVita, Elara is showing how home health companies can establish an early presence in the kidney-specific care market while also diversifying their partnerships and payer mix. More broadly, kidney-focused collaborations offer home health providers a pathway to move beyond traditional service lines, create differentiated value and unlock new avenues for long-term growth as care continues to shift into the home.

But all this being said, details are scarce so far on what the future might hold for Elara Caring and DaVita. The announcement of the deal did not include terms, such as how much of a stake Ares and DaVita have taken in Elara Caring, and I haven’t spoken with leadership at Elara since the announcement. And there are elements of the deal that warrant further consideration.

For instance, DaVita’s scale makes the Elara Caring deal exciting, insofar as it shows how seriously a major player is taking home health partnerships as in-home kidney care accelerates. And while Elara Caring is a large provider that operates a national footprint, DaVita’s huge number of outpatient dialysis centers – more than 2,500 – suggests room for additional home health collaboration. Not to mention that the Elara Caring deal might spur the evolution of home health strategies from other players in the kidney care space, such as Fresenius.

On the other hand, the scale of DaVita and Fresenius has already spurred antitrust concerns, with the Federal Trade Commission probing the companies’ noncompete provisions in physician contracts. That probe began under the Biden administration; while the Trump administration has, in some instances, taken a more relaxed stance on antitrust, the Elara Caring deal is just another indication that the push and pull of health care consolidation is a major force shaping home health.

Two major providers – LHC Group and Amedisys – now are part of the behemoth UnitedHealth Group, but only after the antitrust lawsuit related to the Amedisys deal was resolved. Now another large home health player is financially tied to an in-home dialysis giant also facing antitrust scrutiny. And the backdrop is increasing attention from federal lawmakers who are beginning to push back more aggressively on health care consolidation, including by introducing legislation that would break up “payviders.”

I do not think it’s likely that the feds will try to block this transaction or that a future administration would try to break up DaVita’s alignment with Elara Caring, but I do think that the details of their partnership will be another test for how well integration works – I hope that their approach improves patient care, lowers costs and answers skeptics who fear health care consolidation is mainly a vehicle for increasing provider profits and market control.

The post [Updated] DaVita, Ares Investment In Elara Caring Sets In-Home Kidney Care Proof Point appeared first on Home Health Care News.

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