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Minnesota state Sens. Zaynab Mohamed and Scott Dibble say they will seek legislation regulating private equity’s role in autism therapy providers, citing an investigation by The 74. They want ownership disclosure and tools to address business practices they say may put care at risk; no bill text or legislative timeline was provided in the source report.
Minnesota state Sens. Zaynab Mohamed and Scott Dibble say they will seek legislation to regulate private equity’s influence on autism therapy providers, following a 74 investigation into ownership, Medicaid billing and oversight. The senators say they want more transparent reporting about who owns providers and ways to address business practices that could compromise care.
Mohamed, a Minneapolis Democrat-Farmer-Labor Party senator, called the investigation “outrageous” and said the possibility that investors are exploiting programs for profit is infuriating. Dibble, also a DFL senator from Minneapolis, said the state should be able to identify who owns autism service centers and examine their record of providing care. The report did not provide draft legislation, a filing date or a schedule for action.
The 74 reported that nationwide Medicaid reimbursements for applied behavior analysis, or ABA, rose from $400 million in 2019 to nearly $2 billion in 2024. The report attributed a major role in that growth to private equity’s acquisition and consolidation of therapy centers. Its analysis of federal Medicare and Medicaid records found that private equity firms owned almost half of the 50 companies with the highest claims, which together accounted for $3.1 billion of nearly $7 billion billed during the investigation’s six-year window.
Those figures are findings from The 74’s analysis; they do not by themselves establish that a particular provider committed fraud or delivered inadequate care. The report said ABA providers have drawn scrutiny over the strength of evidence for the treatment, its use with young autistic children and reports of adverse experiences. Those concerns and the spending figures form part of the policy case cited by the senators, not a finding about every provider or family’s experience.
Ownership Rules Could Affect Care
Any legislation could affect how Minnesota monitors providers receiving public funds and how families assess the organizations delivering therapy. The senators’ stated proposals would focus on ownership transparency and the state’s ability to scrutinize companies’ histories and business models. Dibble also argued that providers should be required to spend a specified share of reimbursements on patient care.
The issue intersects with Medicaid’s role in financing services for children with disabilities. The report notes that state budgets and access to care could face pressure as federal Medicaid spending is reduced under the One Big Beautiful Bill Act. At the same time, the investigation describes a risk raised by critics of private equity ownership: if a provider closes or becomes insolvent, families may have to find replacement services. The report does not quantify how many Minnesota families have experienced that outcome.
autism therapy ownership transparency reports
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How Private Equity Entered ABA
The 74 said private equity firms have bought hundreds of small autism therapy centers over the past decade and combined them into larger networks. It reported that some large, for-profit providers have shifted toward states with higher Medicaid reimbursement rates, making Minnesota an attractive market. The source report does not identify every company involved or detail the ownership of each Minnesota provider.
Dibble previously authored a Minnesota bill requiring disclosure when for-profit companies bought nursing homes and assisted-living facilities. That proposal did not become law, according to The 74. The report also cited a state review finding that 79% of complaints about abuse and neglect in long-term care facilities investigated by the Minnesota Department of Health involved for-profit companies. That figure concerns long-term care investigations, not autism therapy providers, and should not be treated as a measurement of ABA care.
““I think we’re entitled to know — this particular entity, what else do they own, and how well have they provided services?””
— Minnesota state Sen. Scott Dibble
Bill Details Have Not Emerged
The senators have not released bill language, named specific regulatory powers they will propose, or said when they expect to introduce legislation. It is also unclear whether their proposal would set minimum patient-care spending requirements, impose ownership disclosures on all providers, or include penalties for noncompliance. The source report describes their intentions but does not establish that a bill has been formally introduced or has support from other lawmakers.
The investigation’s findings about claims and corporate ownership do not establish that all private equity-owned providers provide poor care, or that a particular claim was improper. The report also does not provide a Minnesota-specific breakdown of the national reimbursement figures. The scope and strength of research on ABA’s benefits and potential harms remain contested in the broader debate described by The 74; the supplied material does not provide enough detail to evaluate individual studies.
Legislative Proposal Is the Next Step
The next concrete development would be the senators’ proposed legislation and any public details on reporting rules, care-spending requirements or enforcement authority. The source report gives no date for introduction, committee consideration or a vote. Whether other lawmakers will join the effort, and whether the proposal will advance, remains unknown.
Families, providers and policymakers will also be watching how the state handles Medicaid oversight and service continuity. Any new disclosure or spending rules would need to be assessed against the senators’ stated goals and the final bill text, if one is introduced. For now, the confirmed development is their announcement that they intend to seek regulation, not a change in current law.
Key Questions
What are the Minnesota senators proposing?
Sens. Zaynab Mohamed and Scott Dibble say they will seek legislation regulating private equity’s influence on autism therapy providers. They have called for clearer ownership reporting and greater ability to scrutinize providers, but have not released a bill.
What did The 74 investigation find about Medicaid spending?
The 74 reported that nationwide Medicaid reimbursements for ABA rose from $400 million in 2019 to nearly $2 billion in 2024. Its analysis also found private equity firms owned almost half of the 50 companies with the highest claims, which accounted for $3.1 billion of nearly $7 billion billed during the six-year investigation window.
Does the reporting show that every private equity-owned provider provided poor care?
No. The reported ownership and claims figures do not establish that every provider delivered inadequate care or that specific claims were improper. The senators’ concerns are about oversight, transparency and business practices.
Has a bill been introduced, and when could it be considered?
The source report says the senators intend to seek legislation, but it does not report that a bill has been introduced or give a filing or hearing date. Its provisions and prospects in the Legislature are not yet clear.
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