The Politics of Autism includes an extensive discussion of autism service providers. Private equity firms now own many of them. There are critics.
The Center for Autism and Related Disorders, which operates 130 treatment centers in the U.S., received bankruptcy court approval on Wednesday to sell itself back to its founder for $48.5 million.
The Nevada-based company, which is majority-owned by private equity firm Blackstone (BX.N), filed for bankruptcy in June, saying its business had suffered from higher labor costs, unprofitable long-term contracts with government and commercial healthcare providers, and a long-term shift to telehealth services.
U.S. Bankruptcy Judge David Jones approved the sale at a court hearing in Houston, Texas, saying he was "pleasantly surprised" the company's bankruptcy auction had managed to drive up the sale price from an initial $25 million bid.
"This is an important asset," Jones said. "Not only does it provide jobs and fill a spot in the market, it also provides a very valuable service to a segment of our population that needs help."
