Thirty Madison buys The Capsule Membership’s property following chapter

Continual care administration platform Thirty Madison has acquired the property of on-line contraception pharmacy The Capsule Membership 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, based on Axios. 

Thirty Madison mentioned that due to its strategic asset buy, the corporate will guarantee continuity of take care of over 100,000 sufferers by way of its Nurx model, a direct-to-consumer girls’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 girls’s well being providing by way of Nurx, our girls’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 in addition broaden their choices to psychological well being, skincare, and extra to attain optimum well being,” Thirty Madison mentioned in a put up on LinkedIn. 

THE LARGER TREND 

The Capsule Membership launched in 2016 and raised $51 million in Collection B funding three years later and one other $41.9 million in 2021.

The ladies’s well being firm got here underneath hearth 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 periods 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 allotted feminine condoms to beneficiaries who didn’t need or ask for the contraceptives whereas billing Medi-Cal considerably above the retail worth. 

The Capsule Membership 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 courtroom unsealed a whistleblower criticism in opposition to the corporate by which former nurse practitioners alleged it had defrauded non-public insurers in not less than 38 states.

In accordance with a assertion 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 by way of the years, closing a $47 million funding spherical in 2020 and scoring $140 million in Collection C funding in 2021, pushing the corporate into unicorn standing with a valuation of over $2 billion and a complete elevate of over $210 million. 

The specialty healthcare firm bought the female-focused digital healthcare platform Nurx in 2022.