Power care administration platform Thirty Madison has acquired the belongings of on-line contraception pharmacy The Pill Club following the corporate’s chapter in April.
New York-based Thirty Madison bought over 100,000 affected person recordsdata from the bankrupt firm for $32.3 million, according to Axios.
Thirty Madison mentioned that due to its strategic asset buy, the corporate will guarantee continuity of take care of over 100,000 sufferers via its Nurx model, a direct-to-consumer ladies’s well being firm greatest recognized for its on-line contraception prescriptions.
“We’re excited to proceed our ongoing dedication to constructing a number one ladies’s well being providing via Nurx, our ladies’s healthcare model. We’re thrilled to welcome this new cohort of sufferers and supply them with high-quality care that won’t solely deal with their reproductive well being wants, but additionally broaden their choices to psychological well being, skincare, and extra to attain optimum well being,” Thirty Madison mentioned in a submit on LinkedIn.
THE LARGER TREND
The Capsule Membership launched in 2016 and raised $51 million in Series B funding three years later and another $41.9 million in 2021.
The ladies’s well being firm got here beneath fireplace in February when the California Division of Justice accused it of billing Medi-Cal for companies it had not offered, allegedly submitting claims for 30-minute face-to-face counseling classes when its nurse practitioners did not have direct or real-time contact with sufferers.
The California Division of Insurance coverage mentioned the contraception supplier would invoice for in-person visits when nurses solely reviewed affected person questionnaires. It additionally alleged the corporate distributed feminine condoms to beneficiaries who didn’t need or ask for the contraceptives whereas billing Medi-Cal considerably above the retail worth.
The Pill Club reached an $18.3 million settlement with California authorities for allegedly defrauding the state’s Medicaid program, with $15 million to be paid to the DOJ and $3.3 million to the CDI.
The settlement got here simply days after a state court docket unsealed a whistleblower grievance in opposition to the corporate wherein former nurse practitioners alleged it had defrauded personal insurers in at the very least 38 states.
In response to a statement from their attorneys concerning the settlement, the whistleblowers would obtain roughly $5 million.
The Capsule Membership subsequently filed for Chapter 11 chapter in April.
In the meantime, Thirty Madison has garnered substantial funding via the years, closing a $47 million funding round in 2020 and scoring $140 million in Series C funding in 2021, pushing the corporate into unicorn standing with a valuation of over $2 billion and a complete increase of over $210 million.
The specialty healthcare firm purchased the female-focused digital healthcare platform Nurx in 2022.
