Compliance

ISO Certification Still Elludes Fertility Clinics, IVF Labs

Boston IVF may be only fertility center with ISO certification

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 MALLIKA MITRA

There’s a certification and set of guidelines for maintaining and aligning standards that is common in many industries — but not in the fertility space. One fertility network that has had the International Organization for Standardization (ISO) certification since 2003, however, says it has been hugely beneficial to its organization and that other clinics could find it helpful as well. 

What is ISO? 

ISO is a non-governmental international organization made up of 170 national standard bodies that each represent ISO in their country. The organization — which was founded in 1947 and is headquartered in Geneva, Switzerland — brings together experts to develop standards that can be applied to various industries. ISO itself does not certify organizations; instead, external certification bodies use the ISO standards to certify organizations.

While ISO certifications are popular in many industries, the certification is rare in the fertility space, which has its own standard certification and accreditation.  

ISO is different from accreditation from the College of American Pathologist (CAP) or Joint Commission — standards that are common for fertility clinics in the U.S. — as it focuses more on individual processes and safety such as documents control protocols and processes, said Dr. Steven Katz, CEO of REI Protect. While CAP assesses an organization’s competency to meet specific standards of care, the ISO is more specific in terms of how the laboratory personnel handle tasks and processes. 

The only ISO certified fertility center that could be confirmed by Inside Reproductive Health

Boston IVF became ISO-certified in 2003, said Michael Alper, founding partner of Boston IVF. 

“When an organization gets larger, you have to make a special effort to keep things organized,” Alper said. “[ISO] really helps you get control over things, especially documents.” 

Years ago, Alper asked his staff to send him every document bearing the Boston IVF name. He received thousands, many of which were older and outdated consent forms and brochures. The clinic’s documents were not organized — but Alper says ISO has helped Boston IVF implement guidelines for document control. Alper said the standards also require internal audit.

Every role has a clear job description with detailed workflows, which has “made us a better organization and much more transparent,” Alper said. Protocols, such as the process for transferring frozen embryos, are documented. 

To the best of his knowledge, Boston IVF is the sole ISO-certified IVF clinic in the U.S. even as more hospitals become ISO certified, Alper said. Because ISO certification is carried out by various national and international certification bodies, they could not confirm this.


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(1). Domar, et al. Barriers and factors associated with significant delays to initial consultation and treatment for infertile patients and partners of infertile patients, RBMO, VOLUME 43, ISSUE 6, 2021
 


Why ISO certification isn’t more common in IVF labs 

Because there is a large focus on outcome in the fertility industry — including how many eggs are fertilized and how many people get pregnant — there also needs to be a focus on safety measurements, equipment and documentation, said Dr C. Brent Barrett, chief lab director at Boston IVF. 

“One of the really critical things that ISO continues to do for us is align everyone,” Barrett said. Barret, who inspects IVF labs, said he’s found that labs can be very siloed: the nurses are often separated from the administration workers, who are separated from the physicians. Document control, standardized by ISO, has everyone on the same page, he said.

ISO has also required Boston IVF to put a strict protocol in place to deal with errors, Barret said. 

Katz said fertility clinics may not have a clear understanding of the difference between ISO standards and those of the common certifications and accreditations in the fertility space. 

“For IVF labs around the country, I think they’re having trouble delineating between the ISO certification and the CAP or Joint Commission accreditation,” Katz said. IVF labs may view the certification and accreditation as duplicates, and therefore not consider ISO certification, he added.

“In order for labs to spend time, energy, money, capital resources, to get ISO certified, they really have to understand what it is and how it’s differentiated from CAP or the Joint Commission accreditation,” Katz said. 

ISO’s impact on the desirability of IVF labs in the marketplace 

Boston IVF has changed hands three times since 2019. In late 2023, reproductive medicine group IVI RMA announced it was acquiring the North American operations of Eugin Group, including the Boston IVF fertility network. Before that, the network was owned by European private healthcare provider Fresenius Helios, which bought Eugin Group in 2020. Prior to that, NMC Health plc acquired a majority stake in Boston IVF in 2019.

Alper says that while buyers are not necessarily looking at Boston IVF’s ISO certification when determining its desirability, the culture that the standard has brought to the clinic — such as the  transparency of the clinic, the team-approach to results and the focus on customer satisfaction — has helped establish the clinic’s strong position in the industry.

“Our position in the industry is partly related to that philosophy,” he added.

The content and themes expressed within the article are that of the news. The advertisers do 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 advertisers or of Inside Reproductive Health.


 
 

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Pause and Go: What Alabama’s Four SART-affiliated Fertility Centers Are Doing Now

The pause, the unpause, and remaining challenges 

The content and themes expressed within the article are that of the news. The advertisers do 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 advertisers or of Inside Reproductive Health.

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BY: RON SHINKMAN

The decision from the Alabama Supreme Court giving a just-fertilized ovum the same legal rights as children has upended the IVF business in that state, with at least three of its SART-affiliated fertility clinics pausing such procedures and patients taking their embryos elsewhere.

Alabama’s highest court reversed the prohibition on seeking wrongful death damages late last month, concluding that a human life begins at fertilization. It also concluded that it was up to the state Legislature to make any accommodations regarding that issue.

The decision puts many IVF clinics in a bind because the damages awarded in a wrongful death lawsuit can be much higher than for a breach-of-contract claim, as the latter only focuses on placing a dollar value on the services provided by the clinics and whether they made an earnest attempt to deliver IVF services as promised. Wrongful death litigation focuses more on emotional losses suffered by parents and other family members and could also include punitive damages – additional financial penalties for negligent or deliberate acts.

The state Supreme Court ruling could also lead to criminal prosecutions of clinics that destroyed embryos, although Alabama’s Attorney General promised that would not occur in connection with delivery of IVF services.

Alabama’s four SART-affiliated IVF centers, and what they’re doing

The decision immediately created ripple waves throughout Alabama’s reproductive medicine community, with most pausing procedures. Alabama Fertility Specialists, the University of Alabama at Birmingham health system and the Center for Reproductive Medicine  have all placed pauses on IVF procedures. They comprise three of the four providers in Alabama affiliated with the Society of Assisted Reproductive Technology. The fourth clinic, New Leaders in Fertility and Endocrinology, did not immediately respond to a query about the status of its IVF services.

“We are finishing out patients who are in stimulation and we are just trying to see what happens this week,” said Kathleen Miller, who is laboratory director for Alabama Fertility Specialists in Birmingham, specifically referring to a bill crafted by Alabama lawmakers that would exempt fertility clinics from liability under the Supreme Court ruling  The clinic previously announced that it is putting on hold any new IVF treatments or cycles.

The University of Alabama at Birmingham – which runs perhaps the biggest IVF program in the state, is also continuing to do some work. “Everything through egg retrieval remains in place,” the provider said in a statement. “Egg fertilization and embryo development is paused.”

A source indicated that the Alabama Center for Reproductive Medicine is continuing to perform IVF procedures, but that could not be independently confirmed. Practice founder Cecil Long, M.D. and practice administrator Emma Williams did not respond to phone and email queries.


 
 

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1. Domar, et al. Barriers and factors associated with significant delays to initial consultation and treatment for infertile patients and partners of infertile patients, RBMO, VOLUME 43, ISSUE 6, 2021


Impact on Non-Clinic Fertility Companies Doing Business in Alabama

Miller noted that the bill currently lacks a safe harbor for ancillary businesses, who she said are apparently balking at sending supplies and equipment to Alabama practices until that issue is addressed by lawmakers.

Meanwhile, there are signs that IVF patients in Alabama are taking steps to move their embryos out of the state. Louis Villalba, chief executive officer for New York City-based TMRW Life Sciences, noted that his company’s offer of one year of free storage to anyone wishing to remove their embryos from Alabama has received a strong response. Typically, the company receives about 50 phone calls a week about moving and storing embryos, Villalba said. That call volume has quadrupled since the offer was made. 

Moreover, moving requests are also coming from other nearby states, such as Texas. “It’s coming from all the Red states if you will, and from the Southeast in particular,” Villalba said.

Inception Fertility, which operates 48 clinics in nine states, also confirmed that IVF patients in Alabama have been moving embryos to its facilities in Tennessee and Georgia, according to an email from Chief Marketing Officer Lindsey Rabaut.

Remaining Challenges for IVF in Alabama

Igor Brusil, a former embryologist who now is an attorney in Texas, noted that while the high court’s decision will cause chaos in the short-term, there are feasible workarounds for IVF clinics in Alabama.

“There are things to be done to reduce the number of embryos that the clinic works with, which reduces the risk of any action” that might inadvertently damage them, said Brusil, who added that he is not involved in the Alabama case.

“Clinics can freeze unfertilized oocytes to reduce the number of oocytes that would be inseminated with sperm. This would result in fewer embryos created, thus reducing the number of embryos that potentially could be cryopreserved,” he added. “Alternatively, clinics may have to change stimulation protocols to decrease the number of oocytes collected.”

However, Brusil added that any changes to how the clinics approach the procedure will come at the expense of patients. “They will certainly suffer because whatever decision is made is not going to be the most effective IVF treatment possible,” he said.

The content and themes expressed within the article are that of the news. The advertisers do 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 advertisers or of Inside Reproductive Health.


Correction: 2/29/24 The Inside Reproductive Health article ASRM, SART, SRBT Withdraw Proposal to Eliminate Doctoral Requirement for Embryology Lab Directors, stated that ELDs are governed by the Clinical Laboratory Improvement Amendments of 1988, better known as CLIA. The CLIA regulations govern andrology and endocrinology laboratories within a fertility clinic.

Regulations suggested by the Centers for Disease Control and Prevention and endorsed by the American Board of Bioanalysis and the American Society for Reproductive Medicine and its affiliates require that an ELD have a medical or osteopathic degree or an earned doctorate degree from an accredited institution in a chemical, physical, or biological science as the major subject. Alternatively, individuals may serve as ELD directors without a medical or doctoral degree if they were certified prior to July 20, 1999.


 
 

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External links are being provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by Fertility Bridge or Inside Reproductive Health of any of the products, services or opinions of the corporation or organization or individual. Neither Fertility Bridge nor Inside Reproductive Health bears responsibility for the accuracy, legality or content of the external site or for that of subsequent links. Contact the external site for answers to questions regarding its content.

ASRM, SART, SRBT Withdraw Proposal to Eliminate Doctoral Requirement For Embryology Lab Directors

Dropped after pressure from current IVF lab directors 

The content and themes expressed within the article are that of the news. The advertisers do 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 advertisers or of Inside Reproductive Health.

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BY: RON SHINKMAN

The American Society for Reproductive Medicine (ASRM) and two of its affiliates proposed last year to eliminate the longstanding doctoral degree requirement for embryology laboratory directors, but withdrew it earlier this month after it came under criticism from current lab directors.

The proposal from the ASRM, the Society for Assisted Reproductive Technology (SART) and the Society of Reproductive Biologists Technologists (SRBT) was first submitted to the American Board of Bioanalysis (ABB) last April, according to followup correspondence the groups sent to ABB last September. The proposal was to reinstate an examination and certification pathway for non-doctoral technical supervisors to become embryology laboratory directors. The ABB oversees the certification of laboratory professionals in the United States.

A doctoral degree has been required for embryology lab directors since 1999. That’s when the federal Clinical Laboratory Improvement Amendments (CLIA) regulating labs in the U.S. were expanded to include embryology laboratories. The CLIA regulations also classified embryology labs as conducting “high complexity” testing. All labs with such a designation require physician or doctoral-holding directors. Non-doctoral embryology lab directors at the time were exempted from the new rule, and a small number still hold such jobs, according to Eva Schenkman, an embryology lab director and consultant based in Rocky Mount, N.C.

The September letter to the ABB mentioned “extreme staffing shortages” cited by the SRBT president at the time, Brad Milette. He referenced numerous job openings on the ASRM jobsite, LinkedIn and other sites. However, the letter does not clarify if the shortage includes embryology lab directors.

Milette, a laboratory supervisor and embryologist for the Women & Infants Fertility Center in Providence, R.I., did not respond to phone calls seeking comment.

Also signatory to the letter was past SART president Sangita Jindal. The letter noted that half of current embryology laboratory directors direct more than one lab, although she did not delve further into the average number of laboratories they supervise. Under CLIA, a single individual may direct as many as five high complexity laboratories simultaneously.

Jindal did not respond to emails seeking comment.

The third signatory to the letter was ASRM Chief Executive Officer Jared Robins, M.D. Neither he nor an ASRM spokesperson responded to emails seeking comment. ABB did not respond to a query sent through its website.

Current embryology lab directors believe there was an ulterior motive for the proposal: a concerted cost-cutting campaign among the owners of reproductive medicine practices.


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“There are people who are working for big venture capital and private equity firms (in the fertility business),” and I don’t think they want to pay for PhDs,” said Marlane Angle, director of the laboratory at the Caperton Fertility Institute in Albuquerque, N.M.

Schenkman concurred. She suggested that along with the presence of private equity, inflation and deteriorating margins may be pressuring practice owners to cut costs.

Another laboratory director who asked not to be identified said that the salary differential between someone in a supervisorial position with a doctorate degree and without could be as much as $60,000 per year. A recent salary survey conducted by ASRM and SRBT concluded that the large majority of experienced lab directors with doctorates working at private assisted reproductive technology labs received base salaries between $175,000 and $275,000 per year. But among those lacking a doctoral degree, the majority reported salaries of between $100,000 and $225,000.

“It’s just insane,” Schenkman said of the possibility that someone with a bachelor’s degree and a few years experience could direct an embryology lab.

When Schenkman discovered the proposal had been submitted, she launched a petition to have the proposal withdrawn. The multi-page petition also questioned the jobs data cited in the September letter to the ABB. It stated that the number of embryology lab director positions being posted were perhaps one or two per month. It also noted data from the Centers for Disease Control and Prevention of a 35% increase in cycles using assisted reproductive technology since 2018. Meanwhile, lab growth has been static; the petition also cited CDC data indicating that there are three fewer embryology labs operating in the U.S. now compared to 2018.

“This data aligns with the notion that the rise in cases, unaccompanied by a proportional increase in clinics, underscores a shortage of embryologists rather than laboratory directors,” the petition stated.

The campaign orchestrated by Schenkman appears to have had its impact: more than 400 individuals have signed the petition to date. And on Feb. 2., ASRM, SBRT and SART sent a joint email to ASRM members stating that it had withdrawn the proposal.

“We regret that this process has not been as transparent and inclusive as it should have been and has clearly caused polarized discussions among our SRBT members. Based on the number of comments from our members, we realize that this request was clearly premature and may not be representative of the broad SRBT membership,” read the email, which was signed by ASRM President Paula Amato, M.D., SART President Steven Spandorfer, M.D. and SRBT President Marina Gvakharia, M.D.

In addition to withdrawing the proposal, the email said it would conduct a survey of SART-affiliated laboratories regarding “the current status and future needs of lab directors.” It also planned to conduct a survey of SRBT members on the embryology lab director requirements, and “conduct a series of town hall meetings to present these findings and to listen to our members’ perspectives on addressing workforce challenges.”

The content and themes expressed within the article are that of the news. The advertisers do 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 advertisers or of Inside Reproductive Health.


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External links are being provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by Fertility Bridge or Inside Reproductive Health of any of the products, services or opinions of the corporation or organization or individual. Neither Fertility Bridge nor Inside Reproductive Health bears responsibility for the accuracy, legality or content of the external site or for that of subsequent links. Contact the external site for answers to questions regarding its content.

Eight Fertility Clinic Employees Arrested, Clinic Shut Down By Greek Government

What We Know About What Was Alleged in Crete in August

The Greek clinicians were accused of working with illegal brokers to bring in surrogate mothers and egg donors from Eastern European and Balkan nations.

The content and themes expressed within the article are that of the news. The advertisers do 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 advertisers or of Inside Reproductive Health.

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BY: RON SHINKMAN

The central European fertility sector was rocked in August when Greek police raided a long-established fertility clinic on the island of Crete as part of an investigation into the trafficking of surrogate mothers.

Eight employees of the Mediterranean Fertility Institute (MFI) were arrested in the raid, along with a local midwife who also participated in the alleged scheme. Those taken into custody include the clinic’s founder, Ioannis Giakoumakis, an OBGYN who opened the clinic in 1992. Giakoumakis did not respond to a request seeking comment sent to him through LinkedIn. His attorney, Michalis Mavros, has told Greek media that once more facts about the case emerge, Giakoumakis will be vindicated.

According to the Hellenic Police, the national law enforcement agency that is Greece’s equivalent of the FBI, the clinic had pursued the “industrialization of births,” primarily by working with traffickers who brought foreign-born women living in northern Greece – many refugees from Balkan and Eastern European countries – to act as surrogates and egg donors.

The Hellenic Police said it had been investigating MFI since December 2022. It concluded that at least 98 women were allegedly trafficked by the clinic as surrogates, while another 71 women were “exploited” as egg donors. Many of the surrogates were being housed in 14 residences allegedly procured and operated by MFI. At least 30 pregnant surrogates were found in the residences, which were described as squalid.

In addition to the trafficking charges, Greek authorities also allege that MFI and the eight staffers, “falsified birth records, falsified medical documents, prepared fictitious leases and fictitious cohabitation agreements.” It also alleges that embryos were illegally sold and that as many as 400 patients who underwent IVF procedures may have been defrauded.


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The Hellenic Police claim that MFI paid its own employees bounties ranging from about $3,100 to $5,200 for each surrogate or egg donor they brought in, while the surrogates were paid anywhere from $315 to $630 a month while pregnant. Would-be parents, meanwhile, were charged anywhere from $73,000 to $126,000 for each surrogate birth.

A Hellenic Police spokesperson said that the investigation had recently been handed over to prosecutors in Chania, the city in Crete where MFI is located. A spokesperson for the prosecutor’s office did not respond to a request seeking comment. It is unknown when trials will take place.

The arrests have created an upheaval among would-be parents using the clinic, including as many as 150 from Australia. That nation bans payment for surrogacy, although it is legal if done for free. Greece is one of the few nations that permits surrogacy contracts with foreigners, a law that has been on the books since 2014. Georgia, which also permits overseas commercial surrogacy, is moving to ban the practice by next year.

According to Australian media reports, Greek police have kept newborns linked to the surrogacy scandal in a hospital in Crete, barring contact with their would-be parents until DNA testing can confirm genetic links to MFI clients. And with the clinic shuttered immediately after the raid, many other would-be parents have their eggs and embryos caught in legal limbo.

Along with the chaos created by the scandal, it has also shaken the region’s fertility sector to the core. Nikolaos Vrachnis, a distinguished OBGYN in Athens, was fired by the Greek government as president of the Hellenic National Authority for Medically Assisted Reproduction shortly after the arrests were announced.

The content and themes expressed within the article are that of the news. The advertisers do 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 advertisers or of Inside Reproductive Health.


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  • 23% increase in patient access

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This News Digest Brought to You by
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All external links active as of 2/22/24.

External links are being provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by Fertility Bridge or Inside Reproductive Health of any of the products, services or opinions of the corporation or organization or individual. Neither Fertility Bridge nor Inside Reproductive Health bears responsibility for the accuracy, legality or content of the external site or for that of subsequent links. Contact the external site for answers to questions regarding its content.

Kindbody and Bloomberg. What started the three article series and what journalist expects next

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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External links are being provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by Fertility Bridge or Inside Reproductive Health of any of the products, services or opinions of the corporation or organization or individual. Neither Fertility Bridge nor Inside Reproductive Health bears responsibility for the accuracy, legality or content of the external site or for that of subsequent links. Contact the external site for answers to questions regarding its content.

Law Firm Suing CooperSurgical Says More Lawsuits Forthcoming

Firm’s partner suggests that suits may combine into class-action.

This News Digest Brought to You by
MyEggBank

 
 

BY RON SHINKMAN 

The Los Angeles law firm of Peiffer Wolf, which is representing two couples suing Cooper Surgical, says that more lawsuits will be filed against the company, their attorney told Inside Reproductive Health.

Two Current Lawsuits Against Cooper Surgical for Destruction of Embryos

CooperSurgical is being sued by two Los Angeles couples who claim their attempts at conception through IVF were derailed by a faulty culturing solution that destroyed their developing embryos. 

The lawsuits were filed earlier this month in Los Angeles County Superior Court, records show. They essentially make identical allegations: CooperSurgical sold culturing media to fertility practices that did not undergo sufficient testing. Those lots of solution “turned out to be toxic to human embryos, eggs, and sperm.”

CooperSurgical issued a recall notice of three lots of culturing media to its customers and distributors on Dec. 5, 2023. Entitled “Urgent Media Recall: Field Safety Notice,” the recall noted “a high volume of customer complaints for the three associated lots.” It also warned that the lots pose a risk of “impaired embryo development prior to the blastocyst stage.”

The lawsuits allege CooperSurgical’s recall efforts “intentionally did not immediately disseminate notice of the recalled lots publicly or throughout the IVF community.”

The plaintiffs in the two cases were referred to by random initials to protect their privacy. The clinics that provided the IVF services were not disclosed and were not named as defendants in the lawsuits.

A.B. and C.D., the plaintiffs in one case, allege that faulty culturing media destroyed all but one of “numerous embryos” within a few days of a fertilized egg being cultured in November of last year. E.F. and G.H., the plaintiffs in the other case, claim that all of their embryos were destroyed last November. 

“Plaintiffs are devastated. They may no longer be able to have additional children with their genetic material as a result of defendants’ conduct,” the lawsuits state.

The litigation seeks damages for product liability regarding design and manufacturing defects and failure to warn, negligence and negligent failure to recall the defective culturing lots.

A spokesperson for CooperSurgical, a subsidiary of Pleasanton, Calif.-based medical device manufacturer The Cooper Companies, told Inside Reproductive Health it does not comment on pending litigation.

More Lawsuits Against Cooper Surgical Could Develop Into Class-Action

Peiffer Wolf partner Adam Wolf said that more lawsuits against CooperSurgical are forthcoming. He currently represents some 20 clients who claim the faulty culturing media damaged their embryos.

“It would not surprise me if we end up representing more than 100 people against Cooper. We will file those additional lawsuits in both state court and federal court.” Wolf said in an email. He noted that some clients are in other states outside of California, necessitating the use of federal courts. He added that he would not be surprised if any lawsuits filed in federal court are combined into a class-action, which could expose CooperSurgical to tens of millions of dollars in damages should the company take the case to trial and lose.

The themes reported in this publication are those of the news. They do not reflect the views of Inside Reproductive Health, nor of the Advertiser


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External links are being provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by Fertility Bridge or Inside Reproductive Health of any of the products, services or opinions of the corporation or organization or individual. Neither Fertility Bridge nor Inside Reproductive Health bears responsibility for the accuracy, legality or content of the external site or for that of subsequent links. Contact the external site for answers to questions regarding its content.

The hidden threat to third party IVF. Are ethically sourced eggs being used in your clinic?

In an underregulated industry, its critical that clinics step up to ensure their practices are ethical

This News Digest Is Paid Sponsored Content From
The World Egg & Sperm Bank

 
 

BY: Rachel Leland

While human trafficking for sexual exploitation is widely acknowledged, exploitation in the fertility industry lurks under the radar.

In August, Greek authorities arrested eight suspects connected with a Crete fertility clinic for allegedly exploiting vulnerable foreign women who were used as egg donors and surrogate mothers. 

Allegedly the directors of the clinic recruited brokers to locate and extract consent from vulnerable foreign women to transport them inside Greece where they were subjected to substandard treatment, and in some cases had their eggs harvested before becoming surrogate mothers according to a Greek police news release

Between 2015 and 2018, Indiana University Ph.D student Polina Vlasenko studied Ukraine’s ova market as part of her dissertation, interviewing over 100 egg donors, surrogates, medical professionals and fertility brokers. One egg donor admitted to donating 24 times across India, Georgia, Cyprus and Ukraine! 

More concerning, some U.S. fertility clinics and egg banks may be selling eggs retrieved from exploited donors in developing countries, without patient knowledge, Diana Thomas, Founder and CEO of The World Egg & Sperm Bank said.

Thomas said what first set off the alarm that stateside practitioners were entering foreign data into their CDC records that showed egg retrievals were not from U.S. donors. 

“It just struck me that this is rampant and it’s not being disclosed to potential parents, to doctors, to embryologists,” Thomas said. “You have these arrests going on around the world where they're walking into clinics and arresting the secretary, the embryologist, the doctor and then the organized criminals who are brokering the donors to get them there.”

Thomas performed an informal survey of 185 embryologists and asked them if they knew the origin of the eggs they were warming in the lab. Only half of respondents said they knew.

When it comes to accountability, the waters are murky. The FDA’s regulation of human tissues has a loophole that is widely abused in the industry according to Thomas. While the regulation requires foreign establishments that import human tissue register and list with the FDA, registration is not the same as pre-market review. 

Still, regulators are stepping up and industry professionals should take notice, Thomas said.

Clinics risk a huge financial loss in potentially using trafficked eggs. The U.S. ratified the UN’s human trafficking protocol which demands repatriation of profits made from human trafficking. 

In addition, to legal accountability the reputational consequences for a clinic that uses human trafficked eggs will be catastrophic. 

Though Thomas feels that the industry is not currently regulated sufficiently, she believes that individual egg banks and fertility clinics can take steps to ensure they aren’t using eggs from trafficked victims. At The World Egg & Sperm Bank all donors must provide two forms of ID, undergo internal and independent psychological and medical interviews and be a U.S. resident. 

“We’ve got to do something to save this industry,” Thomas said. “If we're labeled as human traffickers, we are going to start having all of this regulation come down and nobody really wants that when we can self regulate right now.”

This News Digest Story is paid featured sponsor content, where the Advertiser has editorial control. They do not reflect the views of Inside Reproductive Health.


Protect Your IVF Program from Human Traffickers

Your practice and patients are vulnerable to using eggs from victims of human trafficking.

Without proper safeguards, fertility clinics like yours may unknowingly be selling the eggs of these trafficked victims, exposing your patients and your clinic to legal complications. 

There are precautions you can take to minimize your risk. The World Egg & Sperm Bank has created a free due diligence checklist that you can download now to ensure that your clinic only sells eggs from donors who have been safely and ethically protected.

This comprehensive checklist will help you determine the source, procurement process, and traceability of biological materials while also creating higher quality best practices for your patients in egg and sperm selection.

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This News Digest Is Paid Sponsored Content From
The World Egg & Sperm Bank


 
 

All external links active as of 10/16/23.

External links are being provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by Fertility Bridge or Inside Reproductive Health of any of the products, services or opinions of the corporation or organization or individual. Neither Fertility Bridge nor Inside Reproductive Health bears responsibility for the accuracy, legality or content of the external site or for that of subsequent links. Contact the external site for answers to questions regarding its content.

2020 Yale Fertility Fentanyl Incident: New York Times Releases Miniseries

Serial’s “The Retrievals” Podcast Tells Stories of 12 Women Who Underwent Sober Egg Retrievals

 

BY: ROSEMARY SCOTT

In November 2020, Susan Burton, a staff member of the weekly podcast “This American Life,” came across an article published by a local news outlet that detailed an incident at the Yale Fertility Clinic in which a nurse was caught stealing fentanyl intended for outpatient surgical procedures for her own personal use. This caused the women at the clinic to undergo egg retrieval procedures partially or completely sober. 

This was the start of what is now known as The Retrievals–a five-part podcast series produced by Burton for Serial Productions, which, as of 2020, is a unit of The New York Times. The first episode was released on June 29, with a new episode scheduled for every Thursday following for four weeks. 

At the Yale Fertility Center in November 2020, Donna Monticone was caught replacing fentanyl with saline and putting the vials back to be administered to patients, causing women to undergo egg retrieval procedures with little to no painkillers for a total of five months. Shortly after being confronted with the accusations, Monticone admitted that she had been doing this for about five months. 

Seven of those women, after being informed of Monticone’s actions through a letter in the mail, sued Yale University in November 2021, accusing the facility of failing to safeguard its supply of fentanyl. As of now, there are 68 plaintiffs involved in the lawsuit, and as many as 200 women could have undergone this reality over the five months in 2020 that Monticone admitted to tampering with the medication, The New York Times reported. 

In the series, Burton tells the stories of 12 of those women, in which they detail the physical pain they went through during the egg retrievals and the emotional pain they were caused when, according to them, no one at the center seemed to care. 

An audit by the U.S. Drug Enforcement Administration showed that in total, there were discrepancies in 665 units of controlled substances, including fentanyl, ketamine and midazolam. Monticone eventually pleaded guilty in federal court and admitted to tampering with the products in March 2021. She was sentenced to four weekends in prison, three months of home confinement and three years of supervised release.

In episode one of the podcast, Laura Czar tells the story of her egg retrieval at the clinic. Two months prior to the procedure, she said she had been diagnosed with breast cancer and underwent a double mastectomy. She scheduled the egg retrieval in the hopes that she could use them later if her cancer treatment affected her fertility. 

When the procedure began, she recalled saying to the doctors and nurses, “I feel everything.” A nurse responded, she said, and told her she had been given the maximum dose of painkillers. Her story mirrors what others told in the podcast–some were fully alert during the procedure, and others woke up in what they described as “excruciating pain” after. When they told their physicians of their pain, they all got the same response: they were given the maximum dose of painkillers, and could be given no more. 

Karen Peart, a spokesperson for Yale, told the Yale Daily News that Yale “deeply regrets the distress suffered by some of the patients.” 

“After Yale discovered the nurse’s misconduct, it removed her from the Center, alerted law enforcement agencies and notified patients who might have been affected,” Peart said. “The Center also reviewed its procedures and made changes to further oversight of pain control and controlled substances.”

When the news outlet asked what those changes entailed, Peart declined to comment. Researchers shall store schedules I-V controlled substances in a securely locked, substantially constructed cabinet.

In October 2022, Yale University agreed to pay $308,250 to settle the lawsuit and resolve the allegations that it violated civil provisions of the Controlled Substances Act. According to the U.S. Department of Justice, the act requires clinics and researchers to store schedule I-V controlled substances in a “securely locked, substantially constructed cabinet.”

The American Society for Reproductive Medicine frequently issues guidance for fertility clinics such as Yale’s on best practices for patient safety and positive outcomes. When asked to comment about any guidelines about how best to safeguard drugs and painkillers in a clinic that the organization might issue as a result of the public nature of the incident, Dr. Michael Thomas, president of ASRM, told Inside Reproductive Health he is not familiar with the incident and declined to comment further. 

The themes reported in this publication are those of the news. They do not reflect the views of Inside Reproductive Health.

 
 

All external links active as of 7/20/23.

External links are being provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by Fertility Bridge or Inside Reproductive Health of any of the products, services or opinions of the corporation or organization or individual. Neither Fertility Bridge nor Inside Reproductive Health bears responsibility for the accuracy, legality or content of the external site or for that of subsequent links. Contact the external site for answers to questions regarding its content.

FDA Issues Warning to Over 30 Fertility Centers In Last Five Years

What the FDA has been looking for in their audits

This News Digest Is Paid Sponsored Content From
THE FDA CONSULTANTS, LLC

 
 
 

BY: ERIN FLYNN JAY

Last year, the FDA issued a warning letter to a New York City fertility center after an FDA investigator documented significant deviations for human cells, tissues, and cellular and tissue-based products. In 2020, the FDA issued a warning letter to a California IVF fertility center after an FDA investigator found the same issue.

In 2019, the FDA ordered a San Juan, Puerto Rico clinic and its Medical Director to cease manufacturing immediately due to significant violations of FDA regulations. An FDA inspection revealed violations regarding donor eligibility determinations. According to the FDA, the clinic put patients at risk for exposure to communicable diseases, including HIV and Hepatitis.

How does the FDA audit fertility centers? According to Rijon Charne, Fertility Attorney with Sunray Fertility and Chief Legal Officer with The FDA Consultants, the FDA performs random inspections whenever they want. The inspector arrives without notice to inspect the clinic. “They go straight into your lab, they start pulling files, and they start looking at the specimens to see if any of them violate FDA regulations under the specific code.”

Sunday Crider, PhD, HCLD/ELD (ABB), Chief Scientific Officer with The FDA Consultants, said when the FDA finds an offense during a laboratory inspection, they generate a “Form 483”, which is an official documentation of deficiencies .. “The FDA will review areas of concern with the responsible person at the clinic in a debriefing session post-inspection.  The official Form 483 is then sent to the clinic within a few weeks. The laboratory will generally have 30 days to respond to the FDA on how they are going to address those deficiencies.”

Once a clinic registers with the FDA, they are subjected to routine, unannounced inspections at the Agency’s discretion. However, Crider said if serious issues are found on any laboratory inspection,, the FDA may come and inspect more frequently..  Inspection records are retained by the FDA for every registered facility.  Inspections are generally on a two year rotation and almost always unannounced.  FDA inspections are nerve-racking for clinics because of the repercussions if the FDA finds something. Charne spoke of issues of donor eligibility, one of the most common deficiencies the FDA discovers. There are specific labeling requirements for donors that might have HIV or a sexually transmitted infection (STI). Regarding donor oocytes, “those eggs have to be specifically labeled and they need to be put in a separate freezer so that there is no chance of possible cross-contamination with other eggs or other specimens that are being held in the lab.”

If the FDA finds there are egregious issues with donor screening, testing, labeling or storage  during an inspection, they issue a public warning and post it to the FDA website. The clinic then needs to address the issue with a written plan, to be approved by the FDA. Charne said the FDA will return and either pass the lab’s inspection or shut them down.

“The worst part of it all is that the warning to the clinic becomes public,” added Charne. “The notice is put out in an FDA Warning Letter and the clinic goes on the FDA warning list. Any patient (current or potential) of the IVF clinic can see the warning letter on the FDA website. As the fertility space is such a small community and reputation is everything, when people talk, it looks very bad for the clinic.”

FDA violations and warnings can be especially harmful during mergers or acquisitions, especially for private equity firms or Management Services Organizations (MSO) that may want to sell a fertility clinic in the future. An FDA violation could affect the price valuation of the entity and create pause for an insurance company to underwrite a policy for the clinic.

“An FDA violation or warning will raise questions and concerns,” said Charne. “That is why private equity companies and law firms assisting in fertility acquisitions bring on people like the FDA Consultants to do a neutral third party inspection before getting caught in are a unknown FDA violation. The worst issue that could occur is the FDA shutting you down.”

Crider said that while the FDA is only concerned about donor issues, a warning or violation from the FDA tarnishes the reputation of the entire clinic. “You don't want it made public that you do not have good patient care and are okay putting a patient at risk,” she said.

The FDA requires clinics to maintain donor records for at least 10 years.   This is to ensure traceability of donor records, such as communicable disease testing.  For instance, Crider stated, if the recipient of donor eggs or sperm contracted HIV at some point in their life after receiving the donor tissue, it would be important to have records on file to show that the source likely did not come from their anonymous donor, as they are thoroughly screened and tested as a part of becoming an eligible donor.     Proper documentation that the donor was thoroughly screened and tested would become critical should any patient care or legal issues arise. 

Bottom line: every IVF laboratory that processes, screens, stores, tests or distributes any type of donor tissue--be it egg, sperm, or embryo--must register with the FDA and follow the Federal Code 21 CFR Part 1271, guidelines they have set forth. If not, prepare for that FDA violation.

This News Digest Story is paid featured sponsor content, where the Advertiser has editorial control. They do not reflect the views of Inside Reproductive Health.


These 5 Deficiencies Lead to FDA Nightmare


HCLD IVF lab director comes together with reproductive health attorney  to make checklist of what she wishes she had known about what the FDA is looking for in the IVF lab. 

Download their free FDA checklist for the five most common IVF lab deficiencies before the FDA audits you.


 
 

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External links are being provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by Fertility Bridge or Inside Reproductive Health of any of the products, services or opinions of the corporation or organization or individual. Neither Fertility Bridge nor Inside Reproductive Health bears responsibility for the accuracy, legality or content of the external site or for that of subsequent links. Contact the external site for answers to questions regarding its content.

FTC to Fine Easy Healthcare $100K For Data Breaches Connected to Premom App

Justice Dept., Connecticut, Oregon and D.C. Attorneys General Also Take Action

 

By: RON SHINKMAN

The U.S. Federal Trade Commission (FTC) on May 17 proposed fining the maker of the Premom smartphone app $100,000. It is also working with the U.S. Department of Justice to obtain curbs on how it manages the highly sensitive information provided by users. Attorneys specializing in healthcare and privacy law say other reproductive health companies may soon find themselves the target of similar actions.

Premom, which was created by the Chicago-area firm Easy Healthcare, helps users get pregnant by charting their ovulation cycles. Pregnant users can also use the app to chart their pregnancies. It has been downloaded more than 1 million times by Android users, and has been reviewed more than 19,000 times by iPhone and iPad users.

The FTC also said that data gathered by the Premom app was illegally shared with third parties, among them two Chinese companies. According to a complaint the Justice Department filed against Easy Healthcare in federal court in Illinois on May 17, the companies are Umeng, a mobile app analytics firm owned by the e-commerce firm Alibaba, and Jiguang, a mobile development and data analytics company that goes by the name Aurora Mobile Ltd.

Premom also disclosed sensitive medical data to both Google and a company called AppsFlyer, which engages in data analytics. The Justice Department complaint describes the data that was shared as “identifiable health information,” a term for medical data that can be used to identify a specific individual. Such data includes names, addresses and dates of birth, among others.

Easy Healthcare, the Illinois-based firm that operates Premom, also failed to notify consumers of such disclosures, an alleged violation of the federal Health Breach Notification Rule.

“Premom broke its promises and compromised consumers’ privacy,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, in a statement. “We will vigorously enforce the Health Breach Notification Rule to defend consumer's health data from exploitation.” 

In conjunction with the Justice Department, the FTC has also proposed that Easy Healthcare be barred from sharing users’ personal health data for advertising or marketing purposes, obtain their consent before sharing that data for any other purpose, and must also tell consumers how their personal data is being used. Although a federal judge is required to approve this order, a recent court filing states that Easy Healthcare is not contesting any of the proposed actions.

Michelle Merola, a partner with the New York-based law firm of Hodgson Russ and a former U.S. Assistant Attorney in Washington, D.C., called the FTC/Justice Department action a “shot over the bow to developers and vendors of health apps,” and that similar steps against other app makers will be forthcoming.

Cynthia Khoo, a senior associate at the Center on Privacy and Technology at the Georgetown University school of law, agreed that enforcement is being ratcheted up.

“The FTC has become overwhelmingly cognizant of the harms of not just privacy…but the social, psychological and economic harms of technology companies engaging in these types of privacy practices,” she said.

Andrea Frey, San Francisco-based senior counsel and co-chair of the digital health practice of the law firm Hooper Lundy Bookman, added that regulators have a target-rich environment for enforcement.

“My guess is that there are certainly a lot of companies (that are) intentionally or unintentionally, gathering information through tracking technologies that are potentially in violation of FTC or HIPAA rules,” she said.

Khoo said that last year’s decision by the U.S. Supreme Court to strike down Roe v. Wade has made the feds and some state attorneys general particularly sensitive to the legal risks posed by not protecting personal information regarding the ovulation and pregnancy cycles of individual women. That has been further compounded by the growth of healthcare apps in recent years and gaps in the Health Insurance Portability and Accountability Act (HIPAA) that do not completely cover businesses that work with consumers but not with healthcare providers.

Khoo noted that the federal health breach notification rule – which requires companies managing breaches of healthcare information impacting 500 or more individuals report the incident to the general public – has been on the books for 14 years. However, it has only been used twice to punish violators – both times in 2023.

“This suggests to me that they are willing to use it again going forward,” Khoo said. She added that was further reinforced by the FTC recently introducing new guidelines for how businesses collect and manage biometric data.

In addition to the federal fine, Premom’s parent company, Illinois-based Easy Healthcare, has also agreed to pay an additional $100,000 in fines to attorneys general in Connecticut, Oregon and the District of Columbia for state-level violations.

“District residents who used the Premom app were entitled to have their locations and devices kept confidential, but Easy Healthcare shared that private information with third parties without notice or consent, putting users at risk,” said D.C. Attorney General Brian Schwalb in a statement.

In a statement issued in mid-May, Easy Healthcare said “our agreement with the FTC is not an admission of any wrongdoing. Rather, it is a settlement to avoid the time and expense of litigation and enables us to put this matter behind us and focus on you, our users. Rest assured that we do not, and will not, ever sell any information about users’ health to third parties, nor do we share it for advertising purposes.” Easy Healthcare’s statement ended with a pitch for a new line of supplements for those trying to conceive and an upcoming line of prenatal vitamins; a segue Merola and Khoo said was extremely odd for a company responding to a federal regulatory action.

“Odds are that the FTC takes issue with Easy Healthcare’s response and that it is removed from the website before the settlement is finalized,” Merola said.

An Easy Healthcare spokesperson would only refer back to the posted statement when asked to comment about the specifics of the settlement and the product pitches.

The themes reported in this publication are those of the news. They do not reflect the views of Inside Reproductive Health.

 
 

All external links active as of 6/1/23.

External links are being provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by Fertility Bridge or Inside Reproductive Health of any of the products, services or opinions of the corporation or organization or individual. Neither Fertility Bridge nor Inside Reproductive Health bears responsibility for the accuracy, legality or content of the external site or for that of subsequent links. Contact the external site for answers to questions regarding its content.

Chart Inc reserves >$300 million to settle suits from 2018 PFC Tank Failure, sues insurance provider, contractor

The Latest: More Than 550 Legal Actions from 2018 Pacific Fertility Tank Failure

 

By: RON SHINKMAN

March 4, 2018 was a day that shook U.S. reproductive medicine in a way few others have.

That Sunday, a seal in a cryogenic tank at the Pacific Fertility Center in San Francisco failed. That caused the liquid nitrogen inside to vaporize and the tank’s temperature to rise above the optimal temperature for storing eggs and embryos. Its contents – some 4,000 eggs and embryos belonging to approximately 600 clients – were soon ruined.

The first lawsuit over the failure was filed just nine days after the crack was discovered – and only two days after Pacific Fertility had informed its clients of the issue, court records show. That first suit was filed by a client known only as a female San Francisco resident who is referred to by the initials “S.M.” Virtually all of the subsequent suits were filed by plaintiffs who did not reveal their identities. Pacific and its parent Prelude Fertility were accused of negligence in that first suit for failing to monitor the liquid nitrogen tanks more closely.

That initial legal volley was a mere preview of a flood of litigation in both state and federal court, as well as in private arbitrations – more than 550 cases in total, according to court records. 

The legal battles have also embroiled collateral parties. Chart Industries, the Georgia-based manufacturer of the tank that cracked, was added to the initial lawsuits after they were filed. According to court records, the failed tank was manufactured by a Chart subsidiary company in 2012. Chart’s warranty guaranteed the tank would perform without issue for at least a decade. Altogether, that company is trying to resolve some 217 state and federal lawsuits in total, according to a report the company filed in January with the Securities and Exchange Commission. 

Chart also disclosed to the SEC that it is “in ongoing discussions in an effort to establish a settlement framework for the various lawsuits” and that it would be in place as early as the first quarter of 2023. Chart also said it has set aside $305.6 million to fund settlements, or about $1.4 million per case. However, records indicate that only one case in federal court has been settled. Chart did not respond to a query seeking comment.

Chart also filed suit against Navigators Specialty Insurance Co. in February 2019, claiming it refused to provide a high enough payout to cover some costs for its legal counsel. Chart dropped that suit last March and agreed not to refile it, also suggesting a settlement was reached. 

Law Firms Involved

Chart has been represented by Zenere Cowden and Stoddard of Santa Clara, Calif.; the Chicago law firm Swanson Martin & Bell; and until May 2020, Morgan Lewis & Bockius in Los Angeles. Pacific Fertility has been represented by San Francisco-based law firm Morrison & Foerster and another Northern California firm, Galloway, Lucchese, Everson & Picchi, court records show. 

More than four-dozen plaintiffs in the state lawsuits are represented by Lieff Cabraser Heimann & Bernstein in San Francisco. Another San Francisco firm, Walkup, Melodia, Kelly & Schoenberger, represents 33 state case plaintiffs. Five other firms represent between two and four plaintiffs apiece.

Among the federal cases, where multiple law firms are often representing a single client, the Gibbs Law Group of Oakland, Calif. is representing 39 plaintiffs, while Girard Sharp of San Francisco is representing 36. Lieff Cabraser is representing eight clients, while New Orleans-based Peiffer Wolf Carr Kane & Conway is representing seven. Two other firms are representing a handful of other plaintiffs. Pennsylvania-based Sauder Schelkopf is representing three plaintiffs, while the Clarkson Law Firm in Malibu is representing a single plaintiff jointly with Gibbs, Girard Sharp and Lieff Cabraser.

Cases Consolidated

The litigation surrounding the tank failure has been so large and complex “due to the sheer size and how many people were affected” by the incident, said Rob Marcereau, an attorney and founder of the Fertility Law Group, a firm in Irvine, Calif. that often represents fertility clients in malpractice suits. And while a large number of the 600 clients were California residents, many were not. That led to litigation in both state and federal court.

Eventually, the number of lawsuits became so voluminous – more than 60 filed in state court alone – that those were mostly consolidated into a single case. The state cases were settled in late 2021 for an undisclosed sum, court records show. Most of the nearly 150 federal suits have yet to be resolved.

Pacific Fertility Benefited From Contract Terms, >340 Cases Arbitrated

Pacific Fertility eventually scored legal victories. Most of its contracts with its clients contained an arbitration clause. In March 2019, it obtained a court ruling forcing most of the state lawsuits into arbitration. The process is intended to work much more swiftly – and less expensively – than a lawsuit. A retired judge usually hears the case, and their rulings are binding and almost always private. Court records indicate that Pacific Fertility has arbitrated more than 340 cases to date.

However, Chart – which did not have direct contracts with the affected clients – could not move its cases to arbitration. Along with the state lawsuits, there have been at least 140 cases filed in federal court against Chart, records show. 

To give breadth and scope to the federal litigation, a case involving just five Pacific Fertility clients contained more than 1,000 docket entries – individual motions and other documents pertinent to the case. Nevertheless, the lawsuit moved fairly quickly for a federal civil case, which can take five years or more to get to trial. In June 2021, a jury awarded the five clients $14.975 million. The jury also decided that Chart and its manufacturing defect was 90% responsible for the damages. Pacific Fertility was found 10% liable.

“This is an important and emotional ending for our clients who have been through so much pain and hardship since the 2018 tank failure,” said Amy Zeman, a partner with the Gibbs Law Group, after the verdict was delivered.

It didn’t end there, however. Chart and Pacific appealed the verdict. Nearly two years into the appellate process and just days before oral arguments were scheduled in front of the U.S. Ninth Circuit Court of Appeals, the plaintiffs agreed to settle the case last March for an undisclosed sum, the Washington Post reported. The Gibbs attorney who handles media inquiries on the case did not respond to a request seeking comment.

Chart Inc Files Suits of Its Own Against Associates

The episode also embroiled Chart in litigation with its insurers. It was sued in June 2022 by its primary liability insurer, Starr Indemnity & Liability. The carrier asked the court to declare that Chart’s claim for excess liability insurance payouts of up to $231.9 million should not be honored. Chart quickly countersued Starr, accusing it of engaging in a “classic insurance company preemptive strike” to try and get out of paying a claim.  Starr and Chart dismissed their lawsuits in March and April, respectively, suggesting a settlement was reached. 

And even as Chart is moving to settle all the lawsuits against it, it is also suing other parties it believes contributed to the tank failure.

Chart filed a lawsuit in federal court in Ohio against electronics manufacturer Extron, accusing it of supplying a faulty control panel that did not provide accurate pressure and temperature levels for the tank, which it claims contributed to its failure. It is seeking reimbursement from Extron for all liability payments it must make connected to the tank failure.

Whether Chart will prevail in that case remains to be seen. In the 2021 federal trial, the jury found that Chart was aware of potential defects in the tank’s electronics but took no steps to repair or recall them. 

An Extron executive did not respond to a request seeking comment.

Litigators Call For More Regulation

Despite all the ramifications from this single tank failure, the incident did not lead to tighter regulations for egg and embryo storage at either the state or federal levels, according to Marcereau.

“There should be basic, uniform requirements in place for cryogenic storage of embryos or eggs, but sadly there aren’t,” he said. “Until state or federal laws mandate it, many fertility clinics will continue to cut corners – even in the wake of this litigation.”

The themes reported in this publication are those of the news. They do not reflect the views of Inside Reproductive Health, nor of the Advertiser

 
 

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External links are being provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by Fertility Bridge or Inside Reproductive Health of any of the products, services or opinions of the corporation or organization or individual. Neither Fertility Bridge nor Inside Reproductive Health bears responsibility for the accuracy, legality or content of the external site or for that of subsequent links. Contact the external site for answers to questions regarding its content.

Investigation: Progyny Aim of 'Wall Street Suing Machine' After Anonymous Firm Alleges Deceptive Accounting in Competitor-Informed Short Report

This News Digest Brought to You by
BUNDL

 
 
 

BY ERIN FLYNN JAY
 
Rosen Law Firm, The Schall Law Firm, and two other national shareholder rights litigation firms, each announced an investigation of potential securities claims on behalf of shareholders of Progyny, Inc., the largest fertility employer benefit company (NASDAQ: PGNY). 
 
The litigators cite a competitor-informed report by unknown authors that alleges that Progyny “is deceiving the investor community via its financial reporting practices”.
 
On December 7, 2022, Jehoshaphat Research published a short report addressing Progyny, entitled “A Love Child of Accounting Games & Credit Risk. The Jehoshaphat Report alleges that Progyny “is deceiving the investor community via its financial reporting practices” and that Progyny “is actually unprofitable but masks this problem with accounting games.” Among other items, the report alleges that Progyny recently stopped accruing allowances for customer cancellations.
 
According to the report, an employee of KindBody, a competitor of Progyny, talked to the Jehosaphat Research Group. We asked KindBody to comment on who that was and what their relationship with Jehosaphat is. Gina Bartasi, Chair, replied in an email: “We do not know who spoke with Jehosaphat. We won't be weighing in on this report.”

Six investment banks, including KeyBanc Capital and JP Morgan Securities provide analysis on Progyny. None of them have issued short reports on the company.

Rosen Law, Schall Law, and the two other law firms are investigating claims on behalf of investors of Progyny, Inc. (NASDAQ: PGNY) for violations of securities laws. The Rosen Law Firm is preparing a class action seeking recovery of investor losses. Rosen has ranked in the top four of securities class action firms nationwide each year since 2013 by ISS Securities Class Action Services. This ranking is based on the volume of settlements.  
David Sable, a former practicing fertility specialist who now manages a life sciences fund, said “occasionally these types of lawsuits are substantive and unearth malfeasance. Often, they are reverse-pump and dump schemes that cause brief movements in the stock if the firm (already having sold the stock short) can cover the short sale and make a profit.
“There is a well-oiled suing machine on Wall Street that responds to sudden stock drops by filing class action suits — they race to the courthouse to be first to file. The outcomes rarely benefit the shareholders; company boards sometimes pay a ‘settlement’ to make the nuisance suits go away,” he added. 
When reached by phone, Laurence Rosen of Rosen Law Firm said he does not comment on litigation. 

Jehoshaphat Research is operating anonymously, according to their website. 

Neither Progyny nor Jehoshaphat Research responded to requests for comment. 

The themes reported in this publication are those of of the news. They do not reflect the views of Inside Reproductive Health, nor of the Advertiser


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External links are being provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by Fertility Bridge or Inside Reproductive Health of any of the products, services or opinions of the corporation or organization or individual. Neither Fertility Bridge nor Inside Reproductive Health bears responsibility for the accuracy, legality or content of the external site or for that of subsequent links. Contact the external site for answers to questions regarding its content.