Chicago Entrepreneur Transformed Post-Acute Care Market Before Strategic Exit to York Capital
The timeline reads like a startup fairy tale: 39 months from conception to exit. But behind Rehan Azhar’s seemingly overnight success with Comprehensive Rehab Consultants lies a methodical approach to building in one of healthcare’s most complex sectors. Azhar’s journey from Airbnb executive to healthcare entrepreneur offers lessons about timing, market selection, and the discipline required to build a business while the plane is taking off.
Azhar’s path began with an unexpected catalyst. Getting laid off from Airbnb in early 2020 prompted him and co-founder to identify an underserved market ripe for disruption. They found it in skilled nursing facilities, a $180 billion industry that had been resistant to the kind of technological and operational innovations transforming other healthcare sectors.
Spotting the Market Gap
The skilled nursing facility market presented a compelling opportunity. With over 15,000 facilities serving 1.5 million Medicare beneficiaries annually, the sector was fragmented and operating under outdated care models. Most facilities struggled to provide comprehensive specialty care, particularly in physiatry and psychiatry – gaps that directly impacted patient outcomes and facility profitability.
“Our mission was to improve the post-acute space with tech enabled care. Our focus was on rehabilitation of the body and mind,” Rehan Azhar explained about their approach to the market. The company positioned itself to provide hospital-level specialty care directly within nursing facilities, eliminating the need for costly and disruptive patient transfers.
The Conservative Growth Strategy
Unlike typical Silicon Valley ventures that hire aggressively and scale fast, Azhar and his co-founder took a decidedly conservative approach to building their team. This philosophy stemmed from hard-earned lessons about responsibility and risk management.
“We waited so long to actually hire corporate team members because we didn’t want to have to lay them off later. Unlike Silicon Valley where they just hire, hire, hire, my co-founder and I were very conservative with hiring because we took our employees livelihood very seriously,” Rehan Azhar reflected on their hiring strategy.
The approach extended beyond just headcount decisions. “It took time to trust others to execute at the level we held ourselves to. As founders, we had to learn to let go, build systems, and empower the team while maintaining high standards.,” he said. This careful vetting process, while slower, helped ensure that each hire contributed meaningfully to the company’s mission.
Building a Plane While Taking Off
Rehan Azhar frequently used the metaphor of building a plane while taking off to describe the startup experience. “Building a company is like building a plane while it’s taking off,” he explained. “And there’s so much adrenaline, there’s so much excitement, and ups and downs. There is a lot of blood, sweat and tears. Your life is kind of consumed by it. Only other founders can relate to the mental rollercoasters you experience throughout the founding journey”
The constant pressure of decision-making and responsibility created both energy and anxiety. “In the early days of starting the company, I struggled with anxiety, sleepless nights, and even panic attacks. I was overwhelmed by the weight of responsibility—navigating the unknown while knowing that other people’s livelihoods depended on my ability to lead.,” Azhar recalled.
Differentiated Service Model
CRC’s strategy centered on providing comprehensive, on-site care that addressed both physical and mental health needs. The company deployed over 300 clinicians across 30+ states, offering physiatry, psychiatry, and care coordination services directly within skilled nursing facilities.
Their model differed from traditional approaches in several key ways. Their clinicans spent considerable time at the SNF’s, taking time to address patient concerns, and truly working with the inter-disciplinary team including nursing and therapy. This approach improved patient outcomes while reducing costs for facilities and families.
The company leveraged technology to enhance care delivery, incorporating AI-powered tools for training and data analytics to track outcomes. This tech-enabled approach helped differentiate CRC in a market where many providers still relied on paper-based systems and outdated protocols.
The Emotional Journey
As the company matured, Rehan Azhar experienced the paradox of successful entrepreneurship: the business needed him less as it grew stronger. “One of the hardest parts as the company matures and grows is that it needs you less and less. Just like a kid needs their parents less and less, and you feel this emptiness and this sadness of, wait, this is bigger than me now and I’m not as important,” he described.
Strategic Exit Timing
The decision to partner with York Capital came at a moment when the company had achieved significant scale but still possessed tremendous growth potential. York Private Equity’s strategic investment, announced in October 2023, reflected CRC’s position as one of the largest physiatry groups in the United States.
Azhar emphasized that the collaboration would enable CRC to “reach more patients, expand the services we provide them, and improve the quality of care they receive.”
The 39-Month Sprint
From the day Azhar and Osman decided to start working on CRC to the day the acquisition closed spanned roughly 39 months – an extraordinarily compressed timeline for building a healthcare company. “That’s quick compared to most timelines of companies,” Azhar noted.
“The pace of the journey often felt surreal. Sometimes I can hardly believe it even happened—it feels like a fleeting dream. Then I stop and remember the years of blood, sweat, and tears, and the relationships I put on hold to build this company,” Azhar reflected.
Market Transformation
CRC’s success coincided with broader changes in the skilled nursing industry. The COVID-19 pandemic had accelerated adoption of technology and highlighted the need for better specialty care within facilities. The industry, valued at approximately $180 billion and projected to grow at over 3% annually, was ripe for the kind of innovation CRC provided.
The company’s growth reflected larger demographic trends driving demand for post-acute care. With 54 million adults aged 65 and older in the U.S. – a number expected to reach 85.7 million by 2050 – the need for specialized nursing facility services continues expanding.
Lessons in Rapid Scaling
Azhar’s experience offers several insights for entrepreneurs considering healthcare ventures. First, conservative hiring practices, while slower initially, can create stronger foundations for growth. Second, focusing on underserved, less sexy market segments within large industries can provide opportunities for rapid expansion.
Perhaps most importantly, the CRC story demonstrates how operational excellence combined with strategic timing can compress traditional development cycles. The company succeeded not by reinventing healthcare, but by applying proven business principles to solve real problems for specific customer segments.
The majority recap to York Capital represented not just financial success, but validation of a model that could be scaled nationally. With CRC positioned for continued expansion under York’s backing, Azhar’s 39-month journey from Airbnb layoff to successful healthcare entrepreneur stands as a case study in focused execution and market timing.
The difference between success and failure often lies in how well entrepreneurs can navigate that turbulence while keeping their eyes on the destination.
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