Seeking Insights in the Pediatric Therapy Space

January 22, 2025

by a searcher from The University of Texas at Austin - Red McCombs School of Business in Austin, TX, USA

Hello Searchfunder community,

I’m in the early stages of evaluating an opportunity in the pediatric therapy space and am eager to connect with anyone who has experience in this industry. The business offers multiple therapy services, including behavioral health, mental health, speech, occupational, and physical therapy.

If you’ve acquired, operated, or evaluated a similar business—or simply have insights into the pediatric therapy market—I’d greatly appreciate your perspective.

Feel free to comment below or message me directly if you’re open to a conversation. Thanks in advance for your help!

Best regards, Scott Derrick

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Reply by a professional
from University of the District of Columbia in Dallas, TX, USA

Scott - Texas Tech University has a rehabilitation program that houses an informal think tank. I suggest you tap the minds of the advisors and get the nitty gritty of operational headaches and personnel management. On the other hand, I have funded a couple and what stands out to me is the revenue streams that can solidify your interests. From my analysis, the top revenue drivers for the pediatric therapy businesses that I funded in Houston and Dallas include a balanced payor mix of private insurance, Medicaid, and out-of-pocket payments, with a focus on maximizing reimbursement rates. Therapist productivity through optimized scheduling and minimizing cancellations is critical, as is offering the "must haves" of services like speech, occupational, and behavioral therapy to encourage cross-referrals. Building contracts and partnerships with schools, hospitals, and pediatricians can secure consistent client inflow, while strong client retention strategies, such as personalized care plans and continuity of services as children grow, enhance lifetime value and profitability. One I also noticed is parents are needing help with kids who are autistic and sometimes lack the information to properly cater to their rehabilitation. This is where proactive practices come to play, marketing directly to these parents.

The autism aspect of a pediatric therapy business is a significant revenue driver due to the increasing prevalence of autism diagnoses and the demand for specialized services. Providing evidence-based therapies like Applied Behavior Analysis (ABA), which is highly sought after and often covered by insurance, can generate substantial revenue. In addition, the icing on the cake is offering comprehensive care that integrates speech, occupational, and social skills therapies tailored to children with autism. This creates the coveted one-stop solution for families. Partnerships with schools and early intervention programs for autism support can secure long-term contracts, while developing parent training programs and support groups further enhances client retention and satisfaction. This specialized focus not only meets a critical need but also positions your future acquisition as a leader in autism care.

Reply by a professional
from University of Miami in New York, NY, USA

Scott - my wife is in the space, and she’s actually in the acquisition process herself. I’ve done evaluations for her, and I’m also her counsel in this. Have it introduce you to her, as well as the banker.

https://calendly.com/petigara-law-group/meeting-with-vishal-petigara

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