You must have noticed that telehealth startups, as well as digital health companies, have been starting to grow all over the world ever since the pandemic took place because people have now realized that it is convenient, even during normal times, to visit a telehealth firm from the comfort of your home rather than going to a clinic and sitting and waiting for your appointment and then getting yourself checked which usually takes less than 5 minutes of your time but the visit means that 1-2 hours of your time is wasted. Now, it is worth noting that the healthcare companies that did not have the facility to go digital are trying to acquire firms that are either bankrupt or have been functioning below capacity so that they can scoop them up and get the technology for a cheaper price.
That is exactly what a Digital Health firm named Thirty Madison is doing as they have acquired assets from the now-bankrupt The Pill Club for $32.3 million. It is worth noting that this deal includes assets such as 100,000 patient files and intellectual property. It is reported that “The Pill Club, an online birth control and telehealth company that once went by the name Favor, filed for Chapter 11 bankruptcy back in April after it faced Medicaid fraud charges in California”. Due to that reason, Thirty Madison saw the opportunity and pounced on it before anyone else could. Talking about The Pill Club, the California Department of Justice stated that “the company billed Medi-Cal for services it hadn’t provided, allegedly submitting claims for 30-minute face-to-face counseling sessions when its nurse practitioners didn’t have direct or real-time contact with patients”.
As far as the deal with Thirty Madisons is concerned, they said in a press release that “patients from The Pill Club can transition to receiving care through Nurx to ensure continuity of care and support the medical adherence required for effective birth control. Patients also have the option to go to another provider”. At the moment, Thirty Madison claims that it “treats nearly 1 million people, spending the last year successfully scaling its care model to reach more women under Nurx”.
