The autism services space is undergoing significant transformation, marked by major autism services leadership changes with several high-profile CEO departures and transitions across the sector. This reshuffling comes at a time when the industry is grappling with challenges like staff retention issues, stagnating payer rates, and increasing demand for quality care. As new leaders step in, the sector stands at a critical turning point, with these key figures tasked with navigating obstacles and driving their organizations forward. Let’s explore the leadership changes, the companies making waves, and what we can expect as the autism services landscape evolves.
A Leadership Exodus: The Departure of Key CEOs
The recent wave of autism services leadership changes has left a noticeable impact on the industry. Some of the most prominent leaders have decided to step away, opening the door for fresh perspectives and new strategies. Among the most notable departures are Rob Marsh, the former CEO of 360 Behavioral Health, who left the autism sector for addiction services by joining Bradford Health; Jason Owen, who stepped down from his role as CEO of KKR-backed BlueSprig after just two years; and Kathleen Stengal, the founder and former CEO of NeuroAbilities, who announced her departure from the organization.
These high-profile transitions have sparked discussions about the future of autism services, especially as these organizations are under increasing pressure to address persistent staffing shortages, rising costs, and declining payer rates. With such a large number of leadership changes, many of the largest autism providers are now entering a period of transition, where the ability to stabilize and adjust to shifting market conditions will be paramount.
The common thread among these autism services leadership changes is the demand for a new kind of leadership—one that can balance the need for innovative care solutions with the financial realities of the industry. As these organizations face increasing scrutiny, the new leaders tasked with steering these companies forward must navigate a complex landscape while keeping their focus on delivering high-quality care for individuals with autism.
Dr. Neil Hattangadi: Startup Success Amidst Financial Uncertainty
While many autism providers have struggled to secure funding in recent years, Dr. Neil Hattangadi’s company, Cortica, has defied the odds with its remarkable success. In 2023, Cortica raised an impressive $115 million in its Series D funding round, securing backing from well-known investors such as CVS Ventures, LRVHealth, and Ascension Investment Management. This influx of capital is a rare achievement in a funding environment that has been largely unfriendly to many healthcare startups, including those in the autism services space.
The success of Cortica comes at a time when many other autism service providers have faced difficulties in securing investment, and it highlights the growing interest in integrated, specialty care models. Cortica’s approach focuses on providing comprehensive care to children with autism and other neurodivergent conditions, incorporating medical, therapeutic, and behavioral services into one cohesive model.
However, with such substantial investment comes a new set of challenges. Dr. Hattangadi, a trained physician with experience in healthcare consulting and startups, now faces the pressure of meeting the high expectations of his investors. The $115 million raised in 2023 is intended to support Cortica’s growth and scaling efforts, particularly in expanding its integrated care model to serve more children with autism.
One of the key strategies that Cortica has embraced is its venture into value-based care contracts. While only a small portion of the company’s revenue is currently tied to value-based care, Cortica has begun securing alternative payment arrangements with insurers, including a notable agreement with Point32Health. As value-based care models continue to gain traction across the healthcare industry, it will be interesting to watch how Dr. Hattangadi and his team navigate this evolving landscape and leverage their innovative approach to secure a more sustainable future for the company.
Doreen Granpeesheh: The Return of an ABA Pioneer
Doreen Granpeesheh, a recognized leader in the autism services field and a pioneer in Applied Behavior Analysis (ABA), is making a significant return to the Center for Autism and Related Disorders (CARD). Granpeesheh founded CARD in 1990 with just a handful of employees, and over the years, she grew the organization into one of the largest autism service providers in the United States, with over 200 locations nationwide.
In 2018, Granpeesheh sold CARD to Blackstone for $600 million and stepped away from the day-to-day operations, taking on a more advisory role. However, in 2023, after a series of challenges—including layoffs and the closure of several centers—CARD filed for bankruptcy. Following this, a new ownership group, Pantogran and Audax Group, acquired the company for $48.5 million. As part of the deal, Granpeesheh returned to the company as CEO.
Granpeesheh’s return marks a turning point for CARD. Under her leadership, the company is focusing on rebuilding and getting back to basics. Granpeesheh has emphasized the importance of keeping the company lean and focusing on delivering quality care to patients while also managing costs more carefully. One of her primary goals is to ensure that CARD provides services to individuals of all ages, reversing the company’s previous decision to focus exclusively on early intervention for younger children with autism.
Granpeesheh’s deep experience in ABA and her firsthand knowledge of the company’s operations put her in a strong position to steer CARD through these challenging times. As she works to rebuild CARD’s reputation and stability, it will be interesting to see how she adapts her strategies to meet the current demands of the autism services market.
Dennis May’s Return to Hopebridge: A Leadership Revival
Dennis May, who previously served as the CEO of Hopebridge, one of the largest autism service providers in the United States, has made a comeback at the company following the departure of David McIntosh. Hopebridge, which is backed by Arsenal Capital Partners, has faced its share of challenges, including the closure of its ABA service line in Colorado due to low Medicaid rates and inflation. The company also faced a significant cut in autism therapy reimbursement rates in Indiana, which created financial strain.
May’s return to the CEO role comes at a pivotal time for Hopebridge. While he only stepped away from the role for less than a year, his deep understanding of the company’s operations and his years of experience in the autism services field will be crucial as he works to stabilize the organization and address the financial challenges it is facing. It will be interesting to see how May leverages his experience to guide Hopebridge through these turbulent times, particularly in light of the changing reimbursement landscape.
Kate Sheldon-Princi: A Clinician’s Perspective at 360 Behavioral Health
At 360 Behavioral Health, Kate Sheldon-Princi has taken on the role of CEO after the departure of Rob Marsh. Sheldon-Princi, a Board-Certified Behavior Analyst (BCBA), has been with the company for over a decade, making her one of the longest-serving executives in the autism services space. Her clinical background and extensive experience with the organization give her a unique perspective on the challenges facing the autism services sector.
360 Behavioral Health, which was acquired by private equity firm DW Healthcare Partners in 2018, has experienced several leadership changes over the years. The company faced workforce challenges, stagnant payer rates, and increased competition from platform companies, all of which led to layoffs and a period of instability. However, under Sheldon-Princi’s leadership, the company has returned to a growth trajectory, with plans to open new locations in Nebraska.
With her deep clinical knowledge and tenure at the company, Sheldon-Princi is well-positioned to drive meaningful change at 360 Behavioral Health. As the organization moves forward, it will be fascinating to see how she uses her experience to improve service delivery, address workforce challenges, and navigate the financial complexities of the autism services space.
Looking to the Future: The Road Ahead for Autism Services
The leadership changes and transitions in the autism services sector signal a period of transformation for the industry. As the sector faces rising demand for services, financial pressures, and workforce challenges, the new leaders stepping into key roles will play a pivotal role in determining the future of autism care.
The companies and executives highlighted in this blog represent a diverse range of strategies and approaches, from the innovative funding model at Cortica to the return to basics at CARD under Granpeesheh’s leadership. As these leaders navigate the shifting landscape, their ability to balance the needs of patients, staff, and investors will be crucial to the long-term success and sustainability of their organizations.
While the road ahead is undoubtedly challenging, it also presents opportunities for growth, innovation, and positive change in the autism services sector. The next few years will be critical as these leaders work to rebuild, stabilize, and innovate, and their efforts will have a lasting impact on the future of autism care. As we continue to monitor these developments, one thing is clear: the autism services leadership changes signal the dawn of a new era in the sector, and the leaders guiding it will play a key role in shaping its future.
