Most healthcare investors are focused on the major metro battlegrounds, where competition is fierce and valuations are high. For the last seven years, we've been building something different: a rural healthcare platform designed for the communities that are often forgotten. We've invested over $180 million in some of America's most underserved areas[57], and the results have proven our contrarian thesis: some of the best opportunities are found where few others are looking.
The Untapped Potential
When I mention our focus on USDA-defined rural areas, other investors sometimes assume we're limiting ourselves. I think they're mistaking "rural" for "small." The better word is "underserved," and that distinction creates powerful advantages. Our portfolio shows the scale and sophistication that's possible in these markets: Sanderling Renal Services runs 14 dialysis clinics and has built a comprehensive system with home dialysis and tele-nephrology services that reach over 30 partner hospitals[58]. THEMA Health Services provides hospice and home health across Arizona's vast rural expanse, using technology to deliver compassionate care[59]. Baroco Corporation has spent over four decades building a network of community-based disability services, becoming a vital part of the local healthcare fabric[60].Advantages Cities Can't Replicate
Rural healthcare creates natural defenses that don't exist in a crowded city. Geographic Protection: When you're the only dialysis center for 50 miles, your competition isn't the clinic down the street. For all practical purposes, it doesn't exist. Deep Community Integration: In a small town, a healthcare provider is a community institution. The trust built over years is an advantage an outside company can't just buy. Policy Tailwinds: Government policy is increasingly designed to support rural healthcare through better reimbursement and grants. Technology is the key that unlocks this strategy. Sanderling's tele-nephrology platform allows a single specialist to provide expert care to dozens of rural hospitals at once. We're proving it's possible to build sophisticated, scalable healthcare operations in the very markets that have been written off. Our philosophy is simple: companies that create real value for patients in underserved markets will generate the most sustainable returns.References
- Pharos Capital Group rural investment, https://www.pharosfunds.com/impact.php ($180M+ invested into rural markets) ↩
- Sanderling Renal Services operations, https://pharosfunds.com/sanderling.php ↩
- THEMA Health Services portfolio description, https://pharosfunds.com/thema-health-services.php ↩
- Baroco Corporation portfolio description, https://pharosfunds.com/Baroco-Corporation.php ↩
The Arizona Hospice Model: Redefining End-of-Life Care
How THEMA is proving geography doesn't determine quality of death.