The recent MedTec Healthcare acquisition reveals how Reeve Waud structures healthcare investments to serve multiple payment sources. By bringing MedTec under the Altocare umbrella alongside Senior Helpers, Waud Capital Partners creates a platform serving both private-pay clients and those supported by government programs.
This dual-market strategy exemplifies the sophisticated approach the founder of WCP has refined through multiple healthcare ventures. Rather than limiting exposure to a single payment source, Altocare now possesses diversified revenue streams that provide stability while maximizing growth potential.
According to the press release, MedTec Healthcare has built its reputation serving clients across Illinois. Their specialized expertise complements Senior Helpers, which predominantly serves private-pay clients. Together, they position Altocare to navigate the complexities of both payment systems.
The balanced payment approach mirrors strategies Reeve B. Waud implemented in previous healthcare platforms. Acadia Healthcare, which he founded in 2005, developed a payer mix comprising 57% Medicaid, 26% commercial insurance, 14% Medicare, and 3% from self-pay and other sources. This diversification helped Acadia grow rapidly while managing reimbursement challenges.
Industry analysts note several advantages to Mr. Waud’s balanced approach. Private-pay services typically generate higher margins but serve a limited market segment. Medicaid-supported services reach broader populations but face rate constraints. By serving both markets, Altocare can optimize its business model while fulfilling its mission to provide accessible care.
Steve Jakubcanin, Altocare’s Executive Chairman, brings valuable experience navigating both payment systems. As an Executive Partner at Waud Capital with over 20 years of healthcare operating experience, Jakubcanin understands the operational nuances required to succeed with diverse payer sources.
The dual-market approach also creates strategic advantages for the Chicago-based investor’s expansion plans. Medicaid programs vary by state, potentially providing geographic expansion opportunities as Altocare develops expertise navigating different state requirements. Meanwhile, private-pay services can be scaled nationally without regulatory variations.
For healthcare providers serving Medicaid populations, scale matters tremendously. Larger organizations can implement sophisticated compliance systems, optimize scheduling to maximize staff utilization, and negotiate better vendor contracts. These capabilities explain why Reeve Waud typically builds healthcare platforms to significant scale before considering exit strategies.
MedTec’s adult day centers represent another aspect of the dual-market approach. These facilities provide socialization and supervision for seniors while offering respite for family caregivers. By operating both in-home and center-based services, WCP’s Altocare platform can serve clients with different needs and preferences.
From an investment perspective, Waud Capital Partners’ dual-market strategy positions Altocare for sustainable growth. The aging population and preference for home-based care drives increasing demand across both payment segments. With approximately $321.5 million available under its revolving credit facility, Altocare appears well-positioned to pursue additional acquisitions that further strengthen its balanced approach to home healthcare services.
