Fragile Care Populations

Behavioral Health broadly is a compelling and active sandbox for investment with Autism treatment, more specifically, developing as a rapidly professionalizing, highly fragmented and fast growing market that is poised for a standardized approach to holistic treatment. Diagnoses rates for autism have risen from 1 in 500 in 1995 to 1 in 54 as of 2020. While Applied Behavioral Analysis (ABA) therapy is currently the best evidence-based treatment for autism (increasing IQ levels by an average of 18 points), there is lack of clinical protocols that are widely accepted by the market, billing codes vary widely from state to state and the integration between medical and behavioral health continues to be slow. As payers increase coverage for ABA therapy, they are looking for ways to control costs and gain some visibility into clinical pathways or outcomes.

Enormous challenges are baked into the sector that relies on large distributed workforces to meet patient and family demands across home, school and center based service lines.  One of the primary pressure points for all of behavioral health is that reimbursement is lagging behind the valuable services that the segment is beginning to see growth in including earlier diagnoses for chronic conditions that begin in childhood.  Directly tied to low reimbursement is the difficulty in attracting clinical talent into the segment.  For example, the current national shortage of Psychiatrists has been estimated to be around 25,000 and even more startling is that approximately 60% of practicing psychiatrists are over the age of 60 (healthleadersmedia.com).  Building and more importantly, keeping a strong and committed team of front line therapists is easily one of the most challenging barriers to growth and success for the segment.

In addition to the core skills needed to operate a healthcare services business, participation in the building of a behavioral health platform requires a leader to be exceptionally strategic, empathetic and adaptable with the demands of rapid change. In partnership with 3 separate businesses in this segment we have drawn from the market a CEO, COO and SVP of Operations (who was promoted to CEO within 6 months) each with a comprehensive ability to blend their head, hands and heart in concert together. Growth of these businesses is ongoing and continues to serve patients, families and providers with remarkable, life-line services that are built for the long haul. Not to mention the career opportunities afforded to the management teams that are forging new paths of value and scale amidst one of the fastest growing and evolving segments in healthcare today.