Private equity’s autism therapy boom is straining Medicaid

The document examines the rapid growth of private equity-backed autism therapy services, specifically Applied Behavior Analysis (ABA), and its impact on Medicaid budgets. It highlights a pattern of widespread improper payments and billing issues identified in state audits, while noting that rising demand for services coincides with projected federal Medicaid funding cuts.

• Audits across several US states have revealed significant improper payments and billing irregularities in autism therapy services, with specific losses totaling $77.8 million in Colorado, $56 million in Indiana, up to $94.3 million in Wisconsin, and $16.7 million in Massachusetts.
• Private equity firms have acquired over 500 autism therapy centers in the last ten years, utilizing a scalable model based on Applied behavior analysis (ABA) that increases revenue by expanding client numbers or billable hours, which has raised concerns regarding staffing, supervision, and care quality.
• State budgets are facing a dual financial crisis: Medicaid spending on ABA therapy is rising rapidly as diagnoses increase, while federal Medicaid funding is projected to decrease by more than $900 billion over the next ten years.

APA

Private Equity Stakeholder Project (2026). Private equity’s autism therapy boom is straining Medicaid. https://pestakeholder.org/reports/private-equitys-autism-therapy-boom-is-straining-medicaid/

Chicago

Private Equity Stakeholder Project. Private equity’s autism therapy boom is straining Medicaid. 2026. https://pestakeholder.org/reports/private-equitys-autism-therapy-boom-is-straining-medicaid/.

Wikipedia

{{cite report |author=Private Equity Stakeholder Project |title=Private equity’s autism therapy boom is straining Medicaid |date=16 April 2026 |url=https://pestakeholder.org/reports/private-equitys-autism-therapy-boom-is-straining-medicaid/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{privateequitystakeholderproject2026private, author = {{Private Equity Stakeholder Project}}, title = {{Private equity’s autism therapy boom is straining Medicaid}}, institution = {Private Equity Stakeholder Project}, year = {2026}, month = apr, url = {https://pestakeholder.org/reports/private-equitys-autism-therapy-boom-is-straining-medicaid/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }