Positive Development has secured $10 million in funding that involved a division of the nonprofit Blue Cross Blue Shield health plan Carefirst Inc.
The McLean, Virginia-based autism therapy and developmental care provider will use the funding to expand its alternative payment model arrangements with payers.
The company announced Thursday that it received a “substantial investment” from Healthworx, which includes multiple innovation and investment entities. A public document from the U.S. Securities and Exchange Commission shows Positive Development is seeking a $12 million funding round.
At the time Positive Development filed the disclosure with the SEC, the round included six investors. The company was founded in 2020.
Healthworx made “the fund’s largest investment to-date” during the round but didn’t specify a dollar amount. A representative of Positive Development declined to provide additional comment.
Positive Development operates 23 locations in seven states and the District of Columbia, according to its website.
“Positive Development’s unique model delivers quality care while increasing clinical capacity and reducing total program costs,” Carefirst Behavioral Health Director Oleg Tarkovsky said in a news release.
Healthworx invests in ventures that address gaps in health care and improve care for all. Healthwork identified the investment opportunity in partnership with Tarkovsky, the release states.
Positive Development operates on a clinical model called Developmental Care. It includes care outcome tracking technology and customizes care to each patient through a “transdisciplinary” care team. Typically, direct care totals six hours a week.
“The autism spectrum is by definition incredibly diverse and members deserve options that celebrate their strengths and support their unique needs,” Mike Suiters, co-founder and CEO of Positive Development, said in the release. “With this substantial Healthworx investment and partnership with one of the nation’s leading not-for-profit healthcare organizations, we’re poised to address these challenges with better solutions.”
Suiters said that autism spending for payers and employers increased by 50% over the last five years.
Venture capital has tended to favor more tech-focused and less-intensive therapy offerings in the autism therapy space. The digital speech therapy company Exressable raised $28.2 million in a round announced in May 2023. In April 2023, EarliTec Diagnostics raised $21.5 million to further develop a device and software that helps diagnose and assess autism.
In the platform company realm, the private equity firm Tenex Capital Management acquired Addison, Texas-based Behavioral Innovations for a reported $300 million.
