New York-based telehealth company, Thirty Madison, has reportedly purchased strategic assets from The Pill Club, thereby ensuring continuous care for over 100,000 patients. With an impressive track record of treating nearly 1 million patients, Thirty Madison has successfully expanded its innovative care model over the past year, prioritizing improved outcomes and reaching a wider demographic of women through its Nurx platform, which was added as part of a merger in February 2022.
Through the asset purchase agreement, patients previously served by The Pill Club will be able to seamlessly transition to receiving care through Nurx, ensuring uninterrupted reproductive health services and promoting medical adherence for effective birth control. This acquisition also presents patients with the opportunity to explore additional healthcare options Thirty Madison offers, including mental health and dermatology services.
The Pill Club recently faced scrutiny when the California Department of Justice (DOJ) accused the company of engaging in fraudulent billing practices in relation to services provided under Medi-Cal, California’s Medicaid program. The authorities revealed that the company’s billing discrepancies ranged from charging for non-existent 30-minute counseling sessions to billing for in-person visits that were merely questionnaire reviews. Furthermore, The Pill Club was accused of distributing female condoms to beneficiaries who neither requested nor needed them, while invoicing Medi-Cal well above the retail price. In response to these issues and to rebuild trust within the market, The Pill Club has agreed to settle the allegations for $18.3 million.
The settlement swiftly followed the unsealing of a whistleblower complaint against The Pill Club in a state court. Former nurse practitioners alleged that the company had defrauded private insurers in multiple states. As part of the settlement, the whistleblowers will receive a substantial sum of approximately $5 million.
The Pill Club filed for Chapter 11 bankruptcy in April 2023. According to Axios, Thirty Madison paid $32M for over 100,000 patient files from the bankrupt company.
Steven Gutentag, Co-founder and CEO of Thirty Madison, commented in a statement: “Our commitment to prioritizing patient needs is at the core of our values. We believe in stepping up when patients require support, especially when it involves continuity of care. Our foray into women’s health began with the merger of Nurx, and this recent asset acquisition further reinforces our dedication to assisting more women with convenient, trusted, outcome-driven care. Moreover, this opportunity allows us to introduce them to the extensive range of services Nurx offers, enabling us to support them throughout their entire healthcare journey.”
Michelle Carnahan, President of Thirty Madison, added: “Despite making 80% of healthcare decisions, women have historically faced a healthcare system that does not cater to their specific needs. By expanding access to a wide array of conditions we treat, ensuring comprehensive care, and prioritizing positive outcomes, we have a unique chance to provide the healthcare experiences that women truly deserve. We are thrilled to welcome new patients to the transformative healthcare ecosystem we are creating.”