Secular Industry Trends
Neel Bhargava shares a downloadable PDF on how secular industry trends help drive growth of the market for ABA therapy services, which help treat autism in children and young adults.
ABA Therapy market is a highly attractive area to invest considering its favorable growth outlook, supply/demand imbalances, and industry structure.
Tailwinds in the industry, including the increasing incidence of autism in the US, have created a largely underserved market that is growing very rapidly.
Excess demand for ABA therapy has continued to grow, as ABA has demonstrated the highest levels of efficacy while current supply of clinicians are still insufficient.
Industry is very fragmented with only a few larger players. Continues to be opportunity to drive consolidation and create regional leaders through M&A and de novo expansion.
However, given increased consolidation in the industry and rising valuations, finding an appropriate starting platform investment is challenging.
Overview of ABA Therapy Industry
Applied Behavioral Analysis (ABA) Therapy utilizes basic behavioral practices (positive reinforcement, discrete trial teaching, programming for a natural environment, and outcome-based decision-making) to treat Autism Spectrum Disorder (ASD) and aid the development of positive life skills.
Who Provides Services?
Offer services in the classroom alongside teachers or in stand alone centers, as well as in outpatient facilities where patients can seek supplemental services
Typically paid by local school system funding
Deliver treatment in brick and mortar setting and patient’s homes
Commercial insurance companies are the primary payors
What Services Are Included?
Consultation and Assessment:
Understand child’s strengths, abilities, and challenges
Observe behavior, communication, and skills
Plan Development and Execution:
Create formal plan for therapy with concrete treatment goals
Monitor progress and analyze which strategies are working vs. require different treatment tactics
What Is the End Goal?
Improvement in skill deficits:
More effective communication with others
Increased focus in school
Demonstrating more interest in people around them
Learning to ask for things they desire clearly and specifically
Reduction in problem behavior:
Less likelihood of aggression or sudden unexpected outbursts
Reduced self-injurious behavior
Key points include:
- Positive industry catalysts
- Increased insurance coverage
- Demand for ABA therapy services
Download the full PDF, ABA Therapy Industry, on NBGroupInsights.com.