HCAP Partners Announces Investment in Puzzle Healthcare

Investment to accelerate the growth of a post-acute care platform focused on reducing hospital readmissions and improving outcomes

SAN DIEGO, Dec. 19, 2025 /PRNewswire/ -- HCAP Partners, a California-based private equity firm and nationally recognized impact investor, today announced its investment in Puzzle Healthcare, a post-acute care coordination platform delivering physiatry and care management services in skilled nursing facilities (SNFs). The investment supports the scaling of Puzzle Healthcare's model, which reduces hospital readmissions, lowers care costs, and improves patient outcomes.

Puzzle Healthcare provides post-acute care coordination to support patients transitioning from hospital discharge through recovery. By partnering with SNFs and working closely with primary care physicians, facility staff, and families, Puzzle Healthcare helps ensure continuity of care during one of the most vulnerable phases of recovery.

"We are thrilled to support Puzzle Healthcare as they set a new standard for post-acute care," said Jessica Kim, Vice President, HCAP Partners. "The Company assigns disease-specific care managers and physiatry providers to coordinate patient care during SNF stays and for 90 days post-discharge. This innovative approach to reducing hospital readmissions delivers measurable cost savings for hospitals and skilled nursing facilities while ensuring patients receive higher quality, coordinated care during vulnerable recovery periods."

The post-acute care market represents more than $60 billion in annual Medicare spend and is shaped by aging demographics, rising patient acuity, and increasing pressure to reduce hospital readmissions. CMS programs adjust Medicare payments based in part on provider performance, creating direct financial risk for hospitals with high readmission rates. Puzzle Healthcare's service model helps mitigate this risk by embedding care coordination and physiatry services into SNFs, supporting better post-acute outcomes and helping providers avoid reimbursement cuts.

"We are proud to partner with Puzzle Healthcare as they scale innovative, data-driven solutions that strengthen patient outcomes, reduce hospital readmissions, and improve quality outcomes," said Hope Mago, Partner, HCAP Partners. "Puzzle's model is a strong fit for our healthcare investment thesis focused on improving quality while lowering the cost of care and creating long-term value for patients, providers, and communities. We look forward to supporting the company's next phase of expansion as it extends its reach and impact nationally."

Puzzle is actively delivering physiatry and care management services in 230 skilled nursing facilities across 15 states, with continued growth underway. In Michigan alone, Puzzle serves approximately 18,000–24,000 patients annually, supporting roughly 68,000 patient encounters. The company's unique go-to-market strategy is anchored in system-level collaboration with more than 60 hospitals, which serves as the primary entry point to engage aligned skilled nursing facilities around post-acute care coordination, clinical communication, and quality improvement initiatives.

"This partnership with HCAP Partners allows us to accelerate the growth of a care model grounded in clinical excellence, seamless transitions, and strong coordination across the care continuum," said Ahzam Afzal, Co-founder and CEO of Puzzle Healthcare. "As we expand our reach, we remain focused on delivering consistently high-quality care during the most critical stages of recovery."

About Puzzle Healthcare
Founded in 2022 and headquartered in Detroit, Michigan, Puzzle Healthcare is a nationally recognized leader in value-based care, focused on post-acute care coordination and care transitions. The company delivers physiatry-led clinical services and longitudinal care management within skilled nursing facilities, supporting patients during the critical transition from hospital discharge through recovery.
Puzzle Healthcare works with hospitals, skilled nursing facilities, and payors to improve continuity of care, reduce avoidable hospitalizations, and lower readmission rates by strengthening care coordination and follow-up during high-risk transition periods. Recognized by leading health systems and Accountable Care Organizations (ACOs) nationwide, Puzzle Healthcare is committed to advancing more consistent, accountable, and patient-centered post-acute care.
To learn more, visit puzzlehealthcare.com.

About HCAP Partners
HCAP Partners is a private equity firm specializing in providing mezzanine debt and private equity for underserved, lower-middle market companies throughout the United States. The firm seeks to invest $5 million to $35 million in established businesses generating between $10 million and $100 million in revenues in the healthcare, software, services, and manufacturing industries. Since its founding, HCAP Partners has invested in over 65 companies and, through active engagement with portfolio companies, provides value-added resources to help optimize performance and increase enterprise value. The firm has a strong history as an impact fund, recognized as an ImpactAssets 50 fund every year since 2014, and is a founding member of both the Global Impact Investing Network and Impact Capital Managers. Through its Gainful Jobs Approach™, HCAP Partners works to facilitate a positive impact on underserved businesses, their employees, and their communities. For more information, please visit www.hcap.com.

Contact:
Hope Mago
HCAP Partners
[email protected]
(858) 259-7654

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SOURCE HCAP Partners