Thirty Madison, a chronic care management platform, has acquired the assets of online birth control pharmacy The Pill Club following its bankruptcy. Thirty Madison purchased over 100,000 patient files for $32.3 million, ensuring continuity of care through its Nurx brand. The Pill Club faced allegations of fraudulent billing and settled for $18.3 million. Thirty Madison’s strategic acquisition aims to expand its women’s health offering while securing a valued position in the healthcare industry with significant funding and the acquisition of Nurx.
Thirty Madison, a chronic care management platform, has acquired the assets of The Pill Club, an online birth control pharmacy, following the latter’s bankruptcy in April. According to Axios, Thirty Madison, based in New York, purchased more than 100,000 patient files from the bankrupt company for $32.3 million.
By strategically acquiring these assets, Thirty Madison aims to ensure uninterrupted care for over 100,000 patients through its women’s health brand, Nurx. Nurx is a direct-to-consumer company known for its online birth control prescriptions. In a LinkedIn post, Thirty Madison expressed enthusiasm about continuing to build a leading women’s health offering through Nurx. The company looks forward to welcoming this new group of patients and providing them with high-quality care that addresses not only their reproductive health needs but also expands their options to include mental health, skincare, and other areas of optimal health.
The Pill Club, established in 2016, secured $51 million in Series B funding three years later and an additional $41.9 million in 2021. However, the company faced criticism in February when the California Department of Justice accused it of fraudulent billing practices. Allegations included submitting claims for counseling sessions that did not involve direct or real-time contact between the nurse practitioners and patients. The California Department of Insurance also claimed that the company billed for in-person visits while nurses only reviewed patient questionnaires. Furthermore, it was alleged that The Pill Club billed Medi-Cal, California’s Medicaid program, significantly above the retail price for dispensing female condoms to beneficiaries who did not request them.
Following these allegations, The Pill Club reached an $18.3 million settlement with California authorities, with $15 million going to the DOJ and $3.3 million to the CDI. The settlement coincided with the unsealing of a whistleblower complaint against the company, in which former nurse practitioners accused it of defrauding private insurers in multiple states. The whistleblowers are expected to receive approximately $5 million as part of the settlement. Subsequently, The Pill Club filed for Chapter 11 bankruptcy in April.
Meanwhile, Thirty Madison has experienced significant investment, closing a $47 million funding round in 2020 and securing $140 million in Series C funding in 2021. These investments propelled the company to unicorn status, with a valuation exceeding $2 billion and a total raise of over $210 million. In 2022, the specialty healthcare company acquired Nurx, a digital healthcare platform with a focus on women’s health.
