Cortica has announced an additional $40 million in funding for its Series D round, bringing the total investment to $115 million. This significant financial boost comes at a time when investment in behavioral health is experiencing a downturn, with private equity and venture capital activity slowing considerably. Despite these challenges, Cortica continues to attract funding to expand its integrated autism care model, which provides comprehensive support for children with autism and other neurodivergent conditions.
The new funding round was led by CVS Health Ventures, with additional support from LRVHealth, Ascension Investment Management, and the University of Wisconsin Foundation. This backing underscores the confidence investors have in Cortica’s mission and its innovative integrated autism care model. As part of the investment, Justin Brock, executive director and partner at CVS Health Ventures, has joined Cortica’s board of directors, further strengthening the company’s leadership as it scales operations.
Expanding Integrated Autism Care
Cortica’s integrated autism care model brings together multiple specialties under one roof to provide a seamless treatment experience. The company offers services in developmental medical care, neurology, speech-language pathology, physical therapy, and behavioral therapy, allowing families to receive all necessary treatments in a coordinated manner. This approach aims to improve health outcomes, simplify the patient experience, and drive innovation in reimbursement models through value-based care.
The additional $40 million in funding will be used to:
- Expand Cortica’s clinical footprint, increasing the number of offices nationwide
- Enhance technology development, improving accessibility and efficiency for both patients and providers
- Support research efforts, advancing clinical understanding and treatment effectiveness
- Improve clinician and patient experiences, ensuring high-quality care delivery and workforce sustainability
With the increasing prevalence of autism, now affecting 1 in 36 children in the U.S., the demand for specialized, effective care has never been greater. Traditional autism care models are often fragmented, forcing families to navigate multiple providers and inconsistent care plans. Cortica is addressing this issue by offering a streamlined integrated autism care model that allows patients to receive the care they need under one roof.
Cortica’s Leadership in Value-Based Care
Cortica is at the forefront of value-based care contracting in the autism space, an approach that shifts away from traditional fee-for-service models. Instead of providers being reimbursed based on the number of services delivered, value-based care focuses on patient outcomes and cost efficiency.
In 2023, Cortica announced a value-based care arrangement with insurer Point32Health, demonstrating its commitment to improving how autism care is reimbursed and delivered. However, value-based care in autism treatment remains rare, as most providers and payers still rely on fee-for-service models. Cortica CEO Neil Hattangadi previously acknowledged that only a small portion of the company’s revenue is currently tied to value-based care, but the goal is to expand these contracts and make them a larger part of its financial structure.
By aligning its care settings to patients’ needs, Cortica provides treatment both in centers and in-home environments. The company also continues to expand through strategic acquisitions, such as its recent purchases of Springtide Child Development in Trumbull, Connecticut, and Melmed Center in Scottsdale, Arizona. These acquisitions help deepen its clinical presence and broaden access to integrated autism care models that support the whole child and their family.
Challenges in the Autism Therapy Industry
Despite Cortica’s success, the broader autism therapy industry faces significant operational and financial challenges. Rising wage inflation, workforce shortages, elevated interest rates, and stagnant payer reimbursement rates have created an unstable environment for many providers.
Several high-profile autism therapy companies have struggled due to these factors. The Center for Autism and Related Disorders (CARD) was sold back to its founder in 2023 after facing financial difficulties. Invo Healthcare and Hopebridge have also downsized their operations, reflecting the broader struggles within the industry.
However, Cortica’s integrated autism care model may help it navigate these challenges. By providing multiple specialties in-house, the company can offer more efficient and coordinated care, making it a more attractive option for both families and insurers. Investors see this as a key differentiator, setting Cortica apart from other autism therapy providers.
Workforce Stability and Provider Retention
Workforce retention is a major concern in autism therapy, particularly for board-certified behavior analysts (BCBAs). The industry has experienced high turnover rates, which can disrupt patient care and increase operational costs.
According to Ellen Herlacher, principal at LRVHealth, Cortica has taken proactive steps to reduce turnover by creating more sustainable work environments. She noted that the company has implemented structured schedules and improved work-life balance for its staff, making it a more attractive workplace for clinicians.
“This is an aspirational approach to care that is very appealing, especially to MDs,” Herlacher said. “For BCBAs, that is an area that does have more turnover. … Cortica has done interesting things to shore that up by having schedules that provide a more reliable, more sustainable quality of life.”
CVS Health Ventures’ Growing Interest in Behavioral Health
CVS Health Ventures has been actively investing in behavioral health-related businesses, with a focus on companies that are driving innovation in autism care and mental health treatment.
Recent investments include:
- SpectrumAi, an electronic health record provider focused on autism research and therapy data collection
- Array Behavioral Care, a telepsychiatry provider expanding access to virtual mental health services
These investments align with CVS Health’s strategy to improve holistic outcomes, increase patient and clinician satisfaction, and reduce excess health care utilization.
“We’ve been very impressed by the results of Cortica’s integrated autism care model, which aligns with CVS Health’s strategy,” said Justin Brock, executive director at CVS Health Ventures. “Cortica is taking a national leadership role in defining whole-child, whole-family, value-based care for autism, and we’re excited to be a partner in that evolution.”
A Call for Industry-Wide Change
Cortica’s CEO, Neil Hattangadi, has been vocal about the urgent need to evolve autism care models and reimbursement structures.
“With 1 in 36 children in the United States now affected with autism, and that prevalence continually climbing, partnerships between the field’s most innovative clinicians, strategic investors, health plans, and health systems are essential to defragment the traditional care model and evolve the reimbursement paradigm,” Hattangadi said in a press release. “We can no longer wait. Collectively, we’re in a position to solve one of the most pressing challenges confronting humanity.”
By securing $115 million in total Series D funding, Cortica is well-positioned to lead the charge in transforming autism care. Its integrated autism care model, focus on value-based care, and commitment to workforce sustainability provide a strong foundation for future growth, setting it apart from competitors struggling to navigate the challenges in the behavioral health space.
As the company expands its clinical footprint and deepens its impact, it may serve as a blueprint for the future of autism care—one that prioritizes coordinated, patient-centered treatment and sustainable reimbursement models.
