A New Business Model is Transforming the Autism Treatment Industry

Autism affects one in 36 children in the United States, according to the Centers for Disease Control and Prevention (CDC), which is a significant increase over the past four decades. Despite this rise, access to treatment remains a persistent challenge for many families. Applied Behavior Analysis (ABA) therapy, widely recognized as an effective treatment, is a cornerstone of autism care.

The Evolution of Autism Treatment Accessibility

Yet, before 2001, health insurance and Medicaid did not cover autism services, leaving countless families without affordable options. Federal mandates in the mid-2010s addressed this gap by expanding insurance coverage and fueling market demand. Today, the autism services industry is estimated to generate $5 to $7 billion annually, and the ABA therapy market alone is projected to grow at a compound annual growth rate (CAGR) of 4.5 percent over the next three to five years.

The growing demand for autism treatment has created opportunities for expansion within the industry, but meeting the needs of an underserved population remains a critical issue. Despite advances in insurance coverage and the proliferation of autism treatment centers, an estimated 67 percent of children with autism still lack access to adequate care due to geographic or capacity limitations.

Addressing the Accessibility Gap in Autism Care

Private equity (PE) firms have seized on this demand, completing 85 percent of autism healthcare mergers and acquisitions between 2017 and 2022—an unprecedented rate in the healthcare sector. They have built national chains aimed at generating steady returns over a shorter period of time.

The influx of private equity ownership in ABA therapy centers has drawn scrutiny. Profitability has been linked to private equity (PE) ownership of ABA facilities, in part because of differing degrees of regulatory monitoring and flexible provider service standards. However, some case data indicates that ABA autism service firms owned by

The Role of Private Equity in Autism Treatment

PEs could have staffing, supervision, and training difficulties, which could lead to management and employee turnover. With some families indicating a desire for solutions that value compassion, dependability, and operational efficiency, these issues have sparked conversations about maintaining consistent care quality.

However, a new franchising model has entered the market. In 2015, the founding of Success On The Spectrum (SOS) by Nichole Daher marked a shift in the industry. As the first ABA therapy franchise in the United States, SOS achieved a balance of profitability and quality. The franchise format offers a scalable approach while maintaining higher ethical and operational standards enforced by the franchisor. Since opening its first location in 2015, SOS has grown steadily, with over 50 clinics now operating across 16 states. The company plans to open 20 to 30 clinics next year, reflecting its commitment to sustainable growth.

Franchising: A New Approach to Autism Therapy

Now, a handful of other companies are following suit. Companies like Success On The Spectrum, Hi-5 ABA, and Essential Speech and ABA Therapy have demonstrated how this model can bring ABA services to more communities, empowering franchisees to deliver life-changing therapies to children and families. This momentum within the franchise movement reflects a shift towards prioritizing inclusivity and personalized care in the industry, ushering in a new era of accessibility and individualized support.

Healthcare disclaimer:

This article is for informational purposes only and does not substitute for professional medical advice. If you are seeking medical advice, diagnosis or treatment, please consult a medical professional or healthcare provider.