Monthly Newsletter - December 2024
Summary of the Month
December saw multiple ABA providers announcing new centers, clinical expansions, and strategic moves. One prominent organization is seeking a financial partner to fuel future growth; several others opened additional clinics or broadened their service lines to encompass speech, occupational therapy, and early intervention options. Meanwhile, heightened scrutiny of Medicaid spending for autism therapy surfaced in two states, and a federal appellate ruling clarified service obligations for an adult with autism. Below is a categorized roundup of December’s news.
Applied Behavior Analysis (ABA) News
Investments and Acquisitions
ABA Centers of America Seeks Financial Partner, Announces Leadership Change
- Summary: ABA Centers of America confirmed it is in talks with debt-capital groups to help fund further expansion. Separately, Founder/CEO Chris Barnett will transition to chairman, while Jason Barker (formerly, COO at ChenMed) steps in as CEO. The organization operates in 34 markets across 10 states, with plans to open additional locations in 2025.
- Source: Behavioral Health Business
Proven Behavior Solutions Acquires Prism Autism
- Summary: Massachusetts-based Proven Behavior Solutions purchased Prism Autism Education & Consultation, adding three Connecticut clinics. Prism retains its existing leadership and brand identity. Together, they operate seven facilities offering ABA and diagnostic services.
- Source: Behavioral Health Business
New Center Openings
Multiple Providers Expand ABA Footprint
- Behavior Frontiers launched a second Riverside, CA center (5,100 sq. ft. for children ages 2–6) and opened a 9,600 sq. ft. clinic in Eagan, MN—its fourth Minnesota site—to serve group, individual, and speech therapy needs.
- Sources: PR Newswire, Associated Press
- Bierman Autism Centers unveiled its third Ohio facility in Gahanna, offering ABA, speech, OT, and diagnostic evaluations. The grand opening included a Sensory Santa event.
- Source: GlobeNewswire
- The Stepping Stones Group opened an Autism Learning Center in Worcester, MA, highlighting individualized ABA, social interaction programs, and specialized equipment.
- Source: PRWeb
- Autism Learning Partners announced an early-2025 launch in Portland, OR, centered on social skill-building and school-readiness training.
- Source: PR Newswire
- Verbal Beginnings established a new site in Alexandria, VA for children 18 months to 6 years. Beyond ABA, the center plans to add speech-language pathology, OT, as well as a variety of parent training programs.
- Source: GlobeNewswire
Regulatory News
Nebraska and Minnesota Probe Medicaid Spending on Autism
- Nebraska DHHS revealed that Medicaid costs for ABA therapy jumped from $4.6 million in 2020 to $52 million in 2023. Officials are examining billing, service hours, and program guardrails to ensure sustainability.
- Source: Nebraska Examiner
- Minnesota saw FBI raids at two autism centers over alleged improper Medicaid claims for EIDBI services; the investigation was partially linked to a larger federal fraud case. Lawmakers, including Gov. Tim Walz, pledged to review anti-fraud measures without limiting necessary services.
- Sources: Star Tribune, CBS News Minnesota
H.R. 7213: Autism CARES Act of 2024
- Summary: The U.S. House passed a measure to reauthorize federal support for autism research and early intervention. The bill aims to strengthen screening, diagnosis, and evidence-based treatment initiatives.
- Source: GovTrack
Third Circuit Ruling on Round-the-Clock Care for Adult with Autism
- Summary: In a case requiring continuous (24/7) services for an autistic adult, a Pennsylvania district court had ruled the settlement “impractical.” The Third Circuit Court of Appeals reversed, holding that the agreed-upon obligations remain valid and enforceable, thus ensuring uninterrupted care.
- Source: Law360
Other News
Staffer Arrested at Texas Autism Center
- Summary: An employee at BrightPath Behavior in Katy, TX, was arrested on charges of injury to a child after surveillance footage captured the staffer pushing a 5-year-old into a bookshelf. Local media reported that the incident raised parent and community concerns regarding staff screening and training protocols.
- Source: KHOU
Pokémon Creator Discusses Autism Influence
- Summary: Satoshi Tajiri’s experience as a child with autism and passion for insect collecting inspired the “catch and collect” theme of Pokémon. The franchise’s global success, now valued at over $100 billion, highlights how neurodiverse ideas can become major cultural phenomena.
- Source: FandomWire
Related Mental Health News
In the broader mental health sector, several developments suggest evolving investment strategies and regulatory scrutiny. Investors—including non-traditional participants—have contributed over $10 billion to mental health and wellness since 2020, though the pace of deals slowed compared to the 2021–2022 peak. Even so, overall deal value in behavioral health nearly tripled in 2024, reflecting continued optimism. Analysts project higher M&A activity in 2025 if economic conditions stabilize.
Meanwhile, UnitedHealth remains under examination for internal algorithms that flagged patients deemed to be receiving “excessive” therapy, triggering coverage denials in some cases. Critics say this practice underscores the challenges posed by fragmented insurance regulations.
Additionally, an American Psychological Association survey found about one-third of psychologists do not accept insurance, primarily due to low reimbursement rates and administrative hurdles, compounding access problems amid already scarce clinical resources.
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Best regards,
The Bixpli Team