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Piece by Piece Autism Centers Closes Amid Billing Scandal

Araverus Team|Wednesday, April 1, 2026 at 6:33 PM

Piece by Piece Autism Centers Closes Amid Billing Scandal

Araverus Team

Apr 1, 2026 · 6:33 PM

Autism Therapy · Behavioral Health · Healthcare Regulation · Medicaid Fraud

Autism TherapyBehavioral HealthHealthcare RegulationMedicaid Fraud

Key Takeaway

This closure means increased regulatory scrutiny and financial risk for behavioral health providers, especially those heavily reliant on government payers like Medicaid. It means investors must prioritize companies with robust compliance frameworks and transparent billing practices, as the broader crackdown on healthcare fraud impacts valuations and operational stability across the healthcare services sector.

Indiana-based Piece by Piece Autism Centers, an ABA provider, will shut down in May after the Indiana Family and Social Services Administration barred it from Medicaid due to questionable billing practices, including receiving $340,000 in 2023 and billing $58 million between 2019 and 2023.

The closure follows a Wall Street Journal investigation revealing Piece by Piece charged up to $640 per hour for services, making it one of the nation's costliest autism providers. Operations transfer to Applied Behavior Center for Autism, which itself settled for $2 million in 2023 over its own billing practices, as reported by the U.S. Attorney's Office.

Indiana's Secretary of the FSSA, Mitch Roob, mandated providers self-report fraud by April 3, 2026, a deadline the closure precedes. The state's behavioral health sector faces significant challenges with Medicaid reimbursement for autism services, including planned rate cuts in 2023.

A 2025 FSSA working group recommended aligning ABA utilization with clinical evidence, establishing sustainable reimbursement rates, and strengthening program oversight through a dedicated ABA office. This event reflects a broader federal crackdown on healthcare fraud, waste, and abuse as utilization and costs for behavioral health services climb nationwide.

Read More On

Costliest Autism-Therapy Firm—Which Was Barred From Medicaid—Is Closingwsj.comPiece by Piece Autism Centers to Shut Down Following Medicaid Billing Investigation - Behavioral Health Businessbhbusiness.comSome kids with autism are losing therapy services after a Medicaid change reduces clinics’ revenue - VTDiggervtdigger.org