Chronic care management platform Thirty Madison has acquired the assets of online birth control pharmacy The Pill Club following the company’s bankruptcy in April.
New York-based Thirty Madison bought over 100,000 patient records from the bankrupt company for $32.3 million. according to Axios.
Thirty Madison said its strategic asset purchase will allow the company to ensure continuity of care for over 100,000 patients through its Nurx brand, a direct-selling women’s health company best known for its online contraceptive prescriptions.
“We are pleased to continue our ongoing commitment to building a leading women’s healthcare offering through Nurx, our women’s healthcare brand. We are excited to welcome this new cohort of patients and provide them with quality care that not only addresses their reproductive health needs, but also expands their options into mental health, skin care and more to achieve optimal health achieve,” Thirty Madison said in a post LinkedIn.
THE BIGGER TREND
The Pill Club was founded and expanded in 2016 $51 million in Series B funding three years later and an additional $41.9 million in 2021.
The women’s health company came under criticism in February when the California Department of Justice accused it of billing Medi-Cal for services it did not provide and allegedly making requests for 30-minute in-person counseling sessions while the nurses did not have direct or real-time contact with them have patients.
The California Department of Insurance said the contraceptive provider would charge for in-person visits if nurses only reviewed patient questionnaires. It was also alleged that the company distributed female condoms to beneficiaries who did not want or requested the contraceptives, charging Medi-Cal well above the retail price.
The Pill Club reached an $18.3 million settlement with California authorities over alleged fraud in the state’s Medicaid program, paying $15 million to the DOJ and $3.3 million to the CDI.
The settlement came just days after a state court overturned a whistleblower complaint against the company in which former nurses claimed it had defrauded private insurers in at least 38 states.
according to a testimony of their lawyers In terms of the settlement, the whistleblowers would receive approximately $5 million.
The Pill Club then filed for Chapter 11 bankruptcy in April.
Meanwhile, Thirty Madison has garnered significant investment and closed one over the years $47 million funding round in 2020 and $140 million in Series C funding in 2021, valuing the Company at over $2 billion and total raising over $210 million in brings unicorn status.
The specialized healthcare company bought female-centric digital health platform Nurx in 2022.