The Politics of Autism includes an extensive discussion of autism service providers. Private equity firms now own many of them. After its purchase by Blackstone, the Center for Autism and Related Disorders went bankrupt.
Private Equity Stakeholder Project, "Private Equity in Intellectual and Developmental Disability Services." Executive Summary:
Private equity firms have been acquiring companies providing services for people with intellectual or development disabilities (IDD). This includes residential facilities, home health and personal care, supported and independent living services, and others. These services were historically provided primarily by non-profits and religious organizations. Through recent buyouts and consolidation, several large private equity owned companies have emerged with tens of thousands of employees at numerous locations across the United States. In some cases, these companies have achieved regional market concentration obscured by complex ownership structures and disparate branding. Case studies in this report illustrate the risks that the private equity business model poses to IDD providers and the people they serve, including:
- Sevita (Centerbridge Partners, Vistria Group)
- Help at Home (Centerbridge Partners, Vistria Group) \
- Broadstep Behavioral Health (Bain Capital)
- Texas Medicaid HCBS provider landscape
- Advoserv/Bellwether Behavioral Health (GI Partners, Wellspring Capital)
...
PE Cost-Cutting Tactics & Impacts
- Reducing staffing
- Failing to provide adequate training
- Underpaying employees, resulting in high-turnover and understaffing
- Failing to hire employees with adequate licensing (which can be more costly)
- Cutting services (e.g., therapy or educational services)
- Failing to maintain facilities, leading to unsafe or unsanitary living conditions
