I was in a board meeting recently, and the entire conversation revolved around one topic: the staffing crisis. Everyone is feeling it. Nurses, physicians, technicians—the talent pool feels like it's shrinking by the day. The standard private equity playbook is to budget more for recruitment and compete in a costly battle for the same handful of people. We've always seen that as a losing game. Our strategy, going back to our founding in 1998, has been different. Instead of competing for workers, we decided to invest in companies that create them. That thinking has led our portfolio companies to create over 5,800 jobs[1]. This isn't just a number on an annual report for us; it's the core of how we build companies that last.
More Than Just a Headwind
Let's be honest, the numbers are grim. Projections show we will need approximately 1.2 million new registered nurses by 2030 to meet demand[2]. For the rural communities we often invest in, the reality is even tougher. Most investors look at these stats and see a headwind that will squeeze margins for years to come. We see it as a chance to build a real, durable advantage. The best companies won't be the ones with the deepest pockets for hiring bonuses. They'll be the ones that are so good at building talent from the ground up that they become the best place to build a career in town.What This Looks Like on the Ground
Creating 5,800 jobs is one thing, but it's the quality of those roles that matters. When I visit our facilities, I see this in practice. At Family Treatment Network, it's not just about hiring therapists. It's about creating a path for someone to start as an entry-level support staffer and eventually become a senior clinician[3]. With Sanderling Renal Services, we're bringing vital, skilled jobs to small towns for dialysis techs and telehealth coordinators—roles that simply didn't exist there before[4]. At THEMA Health Services, we employ dedicated end-of-life care professionals who provide comfort in underserved communities[5].The Simple Economics of Creating Jobs
This isn't philanthropy; it's a sound business strategy that pays dividends. When you build your workforce from the local community, your recruitment costs are lower and people stick around longer. You forge genuine community ties. You also get to design training that fits exactly what you need. This approach has also led to a remarkably diverse workforce, with 78% female and 51% minority employees across our portfolio[6]. A team that reflects the community it serves is better equipped to provide culturally competent care, which leads to better outcomes.The Real Return
In the end, this all shows up on the balance sheet. A stable, well-trained workforce is an efficient one. It allows our companies to grow and serve more patients. And when it's time to sell, a business with a strong, local workforce and deep community roots commands a premium valuation. As everyone else is fighting over the same shrinking talent pool, we'll keep focusing on a simpler, more powerful strategy: building it ourselves.References
- Pharos Capital Group Impact Report, https://www.pharosfunds.com/impact.php (as of December 31, 2024) ↩
- U.S. Bureau of Labor Statistics, Healthcare Occupations Outlook, https://www.bls.gov/ooh/healthcare/registered-nurses.htm (2024 projections) ↩
- Family Treatment Network portfolio description, https://pharosfunds.com/family-treatment-network.php ↩
- Sanderling Renal Services portfolio description, https://pharosfunds.com/sanderling.php ↩
- THEMA Health Services portfolio description, https://pharosfunds.com/thema-health-services.php ↩
- Pharos Capital Group Impact Report, https://www.pharosfunds.com/impact.php (as of December 31, 2024) ↩