Cortica Secures $80Mn to Expand Autism Care Services & Value-Based Contracts

The round was co-led by Morgan Health, a JPMorgan Chase unit, alongside Nexus NeuroTech Ventures, with backing from the Autism Impact Fund.

Cortica, a healthcare provider focusing on autism and neurodevelopmental disorders, raised $80 million in a strategic funding round. The round was co-led by Morgan Health, a JPMorgan Chase unit, alongside Nexus NeuroTech Ventures, with backing from the Autism Impact Fund. This funding follows Cortica’s Series D round and is aimed at expanding the company’s value-based care (VBC) contracts and physical presence.

The funds will enable Cortica to enhance evaluation, diagnosis, and treatment guarantees while improving clinical outcomes. Currently operating in eight states, the company plans to extend its reach, bolstering its capacity to meet the increasing demand for integrated autism care services.

Founded in 2017, Cortica offers an interdisciplinary approach to care. Its teams include neurologists, behavior analysts, speech therapists, and occupational therapists. Services range from medical care and applied behavior analysis (ABA) therapy to family wellness counseling. The company claims its approach improves clinical outcomes and reduces emergency visits and inpatient admissions, delivering 34% in annual cost savings per patient.

“What you want is one consistent medical home for the patient, and that’s what Cortica is providing,” Morgan Health CEO Dan Mendelson explained.

Cortica's model addresses co-occurring conditions like seizures, sleep disorders, and psychiatric issues. It also limits ABA therapy volume and reduces the use of antipsychotic medications, promoting a holistic approach.

Morgan Health’s investment marks its seventh in the healthcare sector since its inception in 2021. The unit, tasked with deploying $250 million in employer-sponsored healthcare innovations, aims to bring solutions for JPMorgan Chase employees and the broader market.

Meeting the growing demand for autism care

The prevalence of autism has risen sharply, driven by advancements in diagnostic methods. However, available care options often fail to meet this demand. “These services are siloed in the typical benefit plan, and parents then are caught trying to coordinate between all of these benefits,” Mendelson said.

Cortica’s value-based care approach aligns with Morgan Health’s focus on organizations responsible for quality and cost. “One of the core theses that we are advancing at Morgan Health is that we want to be working with organizations that will take responsibility for quality and cost,” Mendelson added.

Cortica currently partners with 35 payers, combining value-based and fee-for-service contracts. For 2024, the company anticipates serving over 24,000 patients and families.

Cortica CEO Neil Hattangadi noted that current fee-for-service arrangements are insufficient to meet the complex needs of autistic children. “These legacy arrangements are also inadequate to meet the holistic needs of each child and family,” he said. Morgan Health plans to shift these agreements towards value-based models focusing on metrics like access, outcomes, and cost across medical and behavioral care.