Market Study · 2026

I/DD Services — U.S.

Home, community, and day services. Prepared for background check executives.
The One-Pager
A $105B market, 95% Medicaid-funded, facing a workforce crisis.
17.3M Americans have I/DD. ~861K receive Medicaid HCBS waiver services, with 710K+ on waitlists. The provider base — ~2,000 largely non-profit agencies — employs 750K+ direct support professionals and turns over 44% of them annually. Every hire requires background screening, exclusion monitoring, and state registry checks.
01
Big, sticky, growing
$105B total spend, 10.7% CAGR since 2019. Medicaid HCBS is the growth engine.
02
Fragmented buyers
Top 15 nationals serve a minority. 1,500+ regional non-profits buy on their own timelines.
03
Compliance-first
OIG/SAM exclusions, state abuse registries, EVV, 42 CFR — no generalist nails all of it.
Total I/DD Spend
$105B
FY 2023
Medicaid Share
83%
$87B of the $105B
People Served
861K
HCBS waiver recipients
DSP Workforce
750K+
44% annual turnover
Why this matters to us

The sales thesis, short

Every I/DD hire is a compliance event. Providers operate under state Medicaid contracts that tie reimbursement to documented screening — criminal, MVR, drug, OIG/SAM exclusion, and state abuse/neglect registries. At 44% DSP turnover on 750K heads, the industry runs ~330K new-hire background checks a year, plus continuous monitoring on the remainder.

No vertical-only winner exists. Healthcare-leaning generalists (PreCheck/Cisive, IntelliCorp, First Advantage) have presence but not fit. SMB tools (Checkr, GoodHire) are too generic for Medicaid audit requirements. The opening is a vertical product that bundles screening + OIG/SAM + state registries + EVV-adjacent integrations with the I/DD EHRs (Therap, iCareManager, Kibu, SETWorks).

Where to go first

Go-to-market priorities

1. Channel into ANCOR + top state associations
Highest ROI
2. Win a reference in NY (OPWDD) or PA
Dense
3. Partner with Therap or Kibu for embedded flows
Moat
4. Target Sevita, Merakey, Devereux, RHA, Mosaic
Enterprise
5. Undercut PreCheck/IntelliCorp on vertical fit
Displacement
Total Market
$105B
FY 2023, OPEN MINDS
HCBS Spend
$43.2B
FY 2021, GAO
Growth (4yr)
50%
10.7% CAGR
Per Person
$47K
Annual HCBS

Spend trajectory

Total I/DD services spending, FY 2019 – FY 2023 ($B)

Sources: OPEN MINDS (2023 total), MACPAC HCBS spending tables, US GAO GAO-23-105457.

Where HCBS dollars go

FY 2021 breakdown of $43.2B in Medicaid HCBS spending for people with I/DD

Source: US GAO Report 23-105457. 47% residential habilitation, 19% independent/own-home, 16% day, 18% other.

Provider base

Registered provider agencies
~2,000
Profit vs. non-profit
~80% non-profit
DSP workforce
750K+
Annual DSP turnover
43.8%
Agencies w/ staffing crisis
95%
Turned away referrals
77%
Source: ANCOR 2023 State of the Workforce Survey.

Population & access

Americans with I/DD
17.3M
Known to state DD agencies
~45%
HCBS waiver enrollees (I/DD)
861K
On HCBS waitlists
710K+
I/DD share of waitlist
72%
Longest state wait
16 yrs (TX)
Sources: RISP/ICI, KFF HCBS Waiting Lists 2016–2025.

How providers get paid

Medicaid dominates. Private pay and commercial insurance are rounding errors at the industry level — meaningful only as a supplemental market for waitlisted families.

Estimate compiled from KFF, ANCOR, MACPAC 2023 MACStats. Exact splits vary by state.

Medicaid mechanisms

States with I/DD 1915(c) waivers
47 of 50
Managed LTSS states
24
States using capitated PMPM
~43%
Fee-for-service dominant
Majority
1915(i) state plan use
Growing, smaller
1115 demo coverage
~900K (mixed)

Big state models

California
Regional Center entitlement (no waitlist)
Florida
iBudget + managed care
Texas
HCS waiver FFS (16-yr waitlist)
New York
OPWDD regional, waiver FFS
Pennsylvania
Consolidated + P/FDS waiver FFS
Ohio
County-board + state MyCare MLTSS

Why this matters for screening

Medicaid reimbursement is conditional on compliance. Provider-enrollment audits verify that every DSP cleared criminal + OIG/SAM + state abuse registry checks at hire, and in many states monthly thereafter. A missed exclusion = clawbacks + civil monetary penalties (e.g., the $6.5M TN settlement).

The Medicaid payer structure is what makes background screening non-discretionary. This is a compliance purchase, not a nice-to-have.

Providers by state

Tap a state to see the largest I/DD providers.

Data available National providers only Selected
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National / multi-state providers

Sources: Sevita, Mosaic, Merakey, Devereux, RHA, Bancroft, Volunteers of America, Easterseals, Dungarvin company sites; BHB reporting on Sevita/ResCare $835M acquisition (2025); FTC divestiture notes.

National associations

These are the megaphones. Sponsorships and vendor lists here hit the broadest share of the buyer universe.

State provider associations

Top 20 I/DD states. Most run annual conferences 200–1,000 attendees.

Where to spend channel budget first

ANCOR Connect (national, spring)
Priority
NYSACRA annual (NY, 200+ agencies)
Priority
OPRA Great Provider Summit (OH)
Dense
PAR annual (PA, 150+ providers)
Dense
IARF annual (IL, 80 agencies / 900 sites)
Consider
NADSP partnership (DSP cert angle)
Consider

Software systems serving I/DD

Consolidating market. PE-backed rollups (CaseWorthy, Netsmart/Apax) on one end; mobile-first challengers (Giv, Kibu) on the other. Therap remains the broad incumbent.

Agency counts are vendor-claimed or estimated. No audited national share data exists.

Tier 1 — broad EHR / case management

Tier 2 — specialized & niche

Tier 3 — EVV & compliance rails

Integration targets

Therap and Kibu publish APIs. An embedded "run screening" action inside the provider's EHR is the highest-leverage product bet — it removes the reason any agency shops the screen as a line item.

Therap API
Open
Kibu integrations
Open
iCareManager
Partial
WellSky Personal Care
Open (4,500+ agencies)
SETWorks
Partner

Background screening — competitive picture

A $14.7B US screening market growing ~12% annually. Two things shape the I/DD opportunity: (1) no competitor treats I/DD as a named vertical, and (2) healthcare-leaning players are the closest fit but still not purpose-built.

US BGC Market
$14.7B
2025 (Mordor)
CAGR to 2030
12%
To ~$25.9B
I/DD-native
0
No vertical specialist
Est. I/DD checks/yr
~330K
Hires alone

Healthcare-adjacent incumbents

Generalists with SMB pull

Compliance-only tools (partner or build)

Where we can win

Built-in state abuse/neglect registry coverage
Wedge
Monthly OIG/SAM monitoring included
Wedge
Native Therap / Kibu / iCareManager plug-in
Moat
Medicaid-audit-ready documentation
Wedge
DSP-onboarding speed (48hr SLA)
Table stakes
FCRA + 42 CFR handling
Table stakes