Positive Development, a developmental therapy provider for children with autism, announced Wednesday that it raised $51.5 million in Series C funding.
The McLean, Virginia-based company’s model is based on Developmental Relationship-Based Interventions (DRBI), which is focused on coaching and helping parents form meaningful interactions with their children through “gentle and warm exchanges,” according to Positive Development’s website. This model is meant to help a child better communicate, learn, problem-solve and regulate emotions.
With Positive Development, patients and their families get access to a clinical support team and parent support sessions, as well as a personalized care plan. Most care is delivered in the home, though in-center services are also available. The company works with most major insurers, including Aetna and UnitedHealthcare.
The Series C round was co-led by aMoon, B Capital and Flare Capital Partners, and included participation from Digitalis Ventures and Healthworx, the innovation and investment arm of CareFirst. Positive Development has raised over $100 million to date.
“Positive Development’s ability to improve outcomes and reduce the total cost of care is directly aligned with aMoon’s mission to partner with exceptional companies who are advancing solutions that will transform healthcare and help people live healthier, better lives,” said Dr. Tomer Berkovitz, managing partner at aMoon, in a statement. “Their unique developmental therapy model brings accessibility and affordability to systems in desperate need of change, and their extensive partnerships with payers and Medicaid programs showcase their success.”
The financing will be used in a few key areas, according to Mike Suiters, Positive Development co-founder and CEO. This includes expanding within existing geographies and new geographies. The company currently has locations in California, Oklahoma, Texas, Maryland, New Jersey, Florida and Illinois. In the next few years, Suiters expects to triple its services in existing locations and expand to five to 10 additional states.
The company will also use the funding to advance its technology and deepen partnerships with health plans and state Medicaid programs by expanding its value-based payment models, Suiters said.
Autism diagnoses are increasing drastically. Currently, about one in 31 children in the U.S. has autism. Most providers use Applied Behavior Analysis (ABA) to treat those with autism, but this can cost more than $50,000 per child annually with long wait times, according to Suiters.
“The market is crying out for alternatives that are clinically effective, cost effective, and scalable. We’re in a unique position to help solve this problem,” he argued.
“The difference is fundamental: ABA focuses on behavior modification, while Developmental Relationship-Based Intervention focuses on building relationships and supporting natural development,” he added. “We’re focused on helping our clients develop their unique strengths and abilities through trusting relationships.”
One company that provides ABA services is Cortica, which also offers speech-language therapy, occupational therapy, counseling and other services. It recently raised $80 million co-led by Morgan Health and Nexus NeuroTech Ventures.
Ultimately, Positive Development hopes to “make developmental therapy affordable and accessible to everyone, everywhere,” Suiters said.
Photo: TAW4, Getty Images
