The Development
A recent study from Brown University’s Center for Advancing Health Policy through Research has shed light on the significant and rapid expansion of private equity (PE) firms into the U.S. autism therapy market. Researchers identified that private equity firms acquired more than 500 autism therapy centers nationwide over the past decade, with a striking nearly 80% of these acquisitions concentrated within a four-year period, specifically between 2018 and 2022.
The findings, published in JAMA Pediatrics, represent one of the first national assessments detailing private equity’s growing footprint in autism services. As of 2024, the study identified a total of 574 autism therapy centers owned by private equity firms, spanning 42 states. These centers were the result of 142 separate acquisition deals. The highest concentrations of these PE-owned centers were found in California (97), Texas (81), Colorado (38), Illinois (36), and Florida (36), while 16 states had one or no such clinics.
Yashaswini Singh, a health economist at Brown’s School of Public Health and a lead author of the study, noted that this trend highlights how financial firms are rapidly entering a sensitive area of healthcare with limited public oversight or data on the motivations and locations of these investments. The research team utilized a combination of proprietary databases, public press releases, and manual verification of archived websites to track ownership changes, a labor-intensive process given that private equity firms and practices are not mandated to disclose acquisitions.
Market Impact
The study suggests that private equity investment has been strategically concentrated in states exhibiting higher rates of autism diagnoses among children and those with fewer restrictions on insurance coverage. States ranking in the top third for childhood autism prevalence were found to be 24% more likely to host private equity-owned clinics compared to other states. This pattern indicates a clear pursuit of markets deemed financially attractive.
The rapid scale and speed of these acquisitions underscore the growing perception of autism therapy as a potentially profitable segment within healthcare. However, this trend raises significant concerns among researchers. Daniel Arnold, a senior research scientist at the School of Public Health, voiced apprehension that private equity firms may prioritize financial gains over the clinical needs of families. He expressed worry about the potential for
Source: brown.edu
