By Dan Matas, Founder of Outcomes Base, Inc.
Recently I’ve been able to talk to quite a few investors about the Applied Behavior Analysis (ABA) space. Pre-pandemic the ABA industry was a booming investment and the PE firms were very interested in having an ABA company as a part of their portfolio. Understandably, there was a bit a slow down starting in 2020, and I’m happy to see that it’s starting to pick back up again. Although there is quite a bit of debate on whether PE is good for ABA, and the quality of care that clients receive, I am definitely a big fan of the firms I have been able to work with over the years. Sure, the point is for them to make a return on their investment, but the level of expertise, systems, and structure that PE capital can bring to any business is unmatched. Most companies who want to widen their reach and expand, need to seriously consider finding investment partners.
With OutcomesBase, one of our goals is to help investors review potential portfolio companies and acquire them in a way that maintains clinical quality, while also putting the necessary key metrics in place to standardize operations and ensure operational efficiency in a compliant manner. Risk mitigation is key to a successful acquisition, and understanding the intricacies and variables that can impact ABA operations and revenue collection are a key part of the compliance landscape.
As a certified healthcare compliance (CHC) professional, I have been trained on what insurance companies and the government are looking for when they audit charts, claims, session documentation, as well as the requirements that need to be in place for all healthcare companies as instituted by the Office of Inspector General. I worked with a PE group recently that was looking to break into the ABA space. Historically, they had worked solely in manufacturing and aerospace engineering, but they saw potential to add healthcare to their portfolio by working with an ABA company. OutcomesBase was able to do a full risk assessment of the potential portfolio company and provide clear and actionable recommendations for how the identified risks can be addressed, now or in the future. OutcomesBase is also equipped to provide on-going support to companies who have recently completed a sale and are looking to scale their business in a compliant and operationally efficient way.
Given the staggering statistics that there are now 1 in 36 kids born in the US who are impacted by an ASD diagnosis, as reported by the CDC in 2023, I believe the need for quality ABA services is greater than ever and is only going to continue to grow. I also believe that this is why I am hearing from more and more investors each week wanting to know more about the industry and why there is such a supply and demand issue. Many of the questions I am being asked about the industry trends are related to staff attrition, the talent lifecycle, ways to address retention, the sustainability of reimbursement rates, and the growth of ABA center-based treatment. All these things are necessary to think about when deciding whether or not to invest in the ABA space, and partnering with a strong operator with a knack for regulatory compliance is a great place to start. OutcomesBase comes with the knowledge and expertise to assist in bridging these gaps.
For more information on how OutcomesBase may be able to assist your journey in ABA investment, schedule a free consultation with us on our website.
Comments