Media outlet’s coverage, company’s responses
The content and themes expressed within the article are that of the news. The advertiser does not have editorial control over the content of this article, and Inside Reproductive Health maintains full editorial independence. The views and opinions expressed in this article do not represent the views of the Advertiser or of Inside Reproductive Health.
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BY: ROSEMARY SCOTT
On Oct. 13, 2023, Jackie Davalos of Bloomberg published her first article on Kindbody, the New-York based end-to-end fertility network, outlining the mishaps some patients reported experiencing at the company’s clinics. The second and third articles covered changes in Kindbody’s financial outlook and a procedure quota for providers, respectively.
These articles led to statements from Kindbody in response, as well as other announcements to defend their reputation in the fertility field.
What Prompted Bloomberg Coverage
Davalos is a technology reporter at Bloomberg and has been with the company since January of 2020. She typically covers the intersection of tech and business, such as AI products in development and powerful tech companies experiencing financial issues. Davalos told Inside Reproductive Health that originally, Kindbody piqued her interest due to its unique business model–Kindbody states it is the only family-building benefits provider for employers that owns and operates fertility clinics.
“I didn't think that this was going to be as big of an investigation as it turned out to be,” Davalos said.
In the first article, Davalos outlined alleged understaffing and inconsistent safety protocols that plague many Kindbody clinics, citing “three dozen current and former employees and patients interviewed by Bloomberg.”
Though Kindbody disputed claims of being understaffed, it acknowledged the mislabeling of embryos in at least one case, Davalos reported. In a statement sent to Bloomberg from an unidentified company spokesperson, Kindbody responded by stating that “no Kindbody laboratory has had an incident, accident or other issue that is unusual to what occurs in IVF laboratories generally.”
Cash Burn and C-Suite Shuffle
In November, Davalos published her second article on Kindbody, stating the startup had made significant changes to its 2023 revenue forecast, lowering its goal from $240 million to $186 million and seeking to raise an additional $50 million by the end of the year.
In March 2023, Kindbody founder Gina Bartasi stated in a press release that the company was valued at $1.8 billion. Now, Kindbody anticipates it will not be profitable until mid-2024, according to documents that Davalos says were given to her by unnamed sources. Bloomberg reported that according to these documents, Kindbody is losing an average of about $7 million each month of 2023 through September and spending about $60 million total in that time period.
Just after the November article in which this information was stated, Kindbody published a press release on Dec. 5 in which CEO Annbeth Eschbach said 2023 was an “exceptional year for Kindbody, highlighted by record levels of revenue.” On Dec. 14, the company published another press release detailing its “2023 Year in Review,” with a list of accomplishments over the year, including partnerships forged and positive financial statistics.
Kindbody is also experiencing leadership changes, according to Davalos’s investigation. Davalos stated Kindbody is paying a search firm $750,000 to replace Annbeth Eschbach, though no timeline has yet been determined for this search, and the new hire has yet to be announced. Additionally, she stated, Kindbody’s president, Gregory Poulos, stepped down from his role in September.
One month later, Kindbody announced that they hired a new chief scientific officer in October. It is also planning to recruit new chief operating and people officers, the sources told Davalos.
Unreasonable Targets vs. Industry Standard, Expanding Access to Care
In an article published Dec. 22, Davalos reported that the company's internal practices have sparked ethical debates among its doctors. The article states that Kindbody executives, during a retreat in September, informed reproductive endocrinologists that they needed to increase their IVF volumes by 12 egg retrievals per month The article reports that the quota aims to increase net income and meet the company's goals for going public.
According to Davalos, several physicians called the targets “unreasonable” and warned these new measures could result in physicians pushing IVF to women who may not need it. She did not specify exactly how many physicians spoke out.
In response, Kindbody defended its practices in a statement sent to Bloomberg. Kindbody stated that tying monthly egg retrieval targets to compensation and revenue forecasts is an “industry standard.” Bloomberg did not report on what other fertility networks do or do not follow the same practices.
Shortly after that article was published, Kindbody announced the opening of a new office in the San Francisco Bay Area.
More Bloomberg Articles on Kindbody
For her part, Davalos told Inside Reproductive Health that as long as sources keep coming forward with information, she plans to continue reporting on Kindbody.
“If there's fresh reporting, and if there's people coming forward, I'm certainly going to report on that as it comes through,” she said.
Neither Gina Bartasi, Kindbody’s founder, or Annbeth Eschbach, CEO, responded to Inside Reproductive Health’s request for comment through LinkedIn or through the company's general press email.
The content and themes expressed within the article are that of the news. The advertiser does not have editorial control over the content of this article, and Inside Reproductive Health maintains full editorial independence. The views and opinions expressed in this article do not represent the views of the Advertiser or of Inside Reproductive Health.
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