HealthSpot, the telemedicine company that abruptly ceased operations at the end of 2015, is liquidating rather than trying to reorganize. The failed Dublin, Ohio-based startup filed Chapter 7 papers Wednesday in U.S. Bankruptcy Court in Columbus, Ohio.
According to the filing, HealthSpot had assets of $5.2 million and liabilities of $23.3 million. The company had raised approximately $48 million over four years, according to a report in Columbus Business First.
HealthSpot generated just $1.1 million in revenues over three years, though $600,000 of that came in 2015.
As some had speculated, the majority of assets, about $3.5 million, were attributed to inventory, namely HealthSpot’s pricey telemedicine kiosks. HealthSpot had built 191 kiosks, 137 of which had never been deployed. The other 54 are still sitting unused in public spots, including Cleveland Clinic sites and Rite Aid stores, Columbus Business First reported.
HealthSpot attorney David Whittaker, in the Columbus office of Bricker & Eckler, confirmed to MedCity News that the Business First account was accurate to the best of his knowledge.
Major creditors include Internet service provider Cox Communications and prominent HealthSpot investor Xerox.
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
View HealthSpot’s financial report to the bankruptcy court here.
Photo: Flickr user Rachael Voorhees
