Information on the target
Rise & Shine Social Enterprise, based in Springfield, Oregon, has recently transitioned to an employee-owned model, marking a significant milestone in the caregiving sector. With over 250 employees, the company specializes in providing 24-hour residential services to more than 75 Oregonians with developmental disabilities across more than 20 locations. This transition makes Rise & Shine the first employee-owned caregiving agency in Oregon, allowing employees to build ownership and participate in the company's long-term success.
The shift to an Employee Stock Ownership Plan (ESOP) was announced by founder Cindy Koza, who emphasized the importance of social justice and positive community impact. Under the ESOP structure, full-time employees over the age of 18 will receive stock allocations starting in 2027, following an independent valuation of the company. This model not only empowers employees but also aims to enhance the sustainability of caregiving careers in the region.
Industry overview in the target’s specific country
The Residential & Long-Term Care industry in the United States is a critical component of the healthcare sector, providing essential services to individuals with chronic illnesses, disabilities, and age-related needs. As the population ages, the demand for long-term care services is expected to rise significantly. In Oregon, this trend is particularly pronounced, with a growing number of individuals requiring personalized care in residential settings. The state has seen an increase in the establishment of caregiving agencies, driven by the need for quality care and support for vulnerable populations.
Oregon's long-term care landscape is characterized by a diverse array of service providers, including non-profit organizations, for-profit companies, and now, employee-owned enterprises like Rise & Shine. This diversity fosters competition and innovation within the industry, allowing for tailored services that meet the unique needs of clients. However, the sector also faces challenges, including high turnover rates among caregivers, which can impact the quality of care provided. According to the Home Care Association of America, approximately 80% of caregivers leave their positions within the first 100 days, highlighting the need for sustainable employment practices.
In response to these challenges, Oregon has implemented policies to support employee ownership models, recognizing their potential to improve job satisfaction and retention rates among caregivers. The passage of House Bill 3646 in June 2025 allows public agencies to prioritize contracts with businesses where employees own at least 50% of the company. This legislative support is expected to encourage more businesses in the state to consider employee ownership as a viable model for enhancing workforce stability and community engagement.
As the Residential & Long-Term Care industry continues to evolve, the focus on employee ownership may serve as a catalyst for positive change. By fostering a sense of ownership…