HealthSpot files for bankruptcy liquidation to pay creditors

By Aditi Pai
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About two weeks after reports of it shutting down surfaced, HealthSpot, which offered telemedicine kiosks for workplace and retail locations, has filed for Chapter 7 bankruptcy liquidation, according to a report in Columbia Business First.

“There were some positive events in the operation of the business, but the company simply did not have enough cash flow to continue to operate and continue to execute on those positive opportunities,” David Whittaker, the company’s attorney who filed for bankruptcy, told the publication.

In the last three years, the company saw $1.1 million in revenue, $600,000 from 2015. In its bankruptcy filing, the company reported that it had $5.2 million in assets as well as $23.3 million in liabilities. Of the assets, $3.5 million was inventory, which included 137 kiosks in storage. The liabilities included $10 million in convertible notes from Cox Communications and $6 million from Xerox. 

HealthSpot kiosks were designed for supermarkets, pharmacies, and healthcare facility waiting rooms. Some of the company’s customers included Rite Aid and Cleveland Clinic. 

The kiosks were fully enclosed to provide a private setting for its remote care services. Patients using the kiosk could visit with doctors in real-time via high-definition videoconferencing. The kiosks came equipped with digital medical devices that allowed doctors to collect health information during the remote visits, specifically a blood pressure cuff, thermometer, stethoscope, dermoscope, and otoscope as well as a built-in weight scale.

HealthSpot had raised at least $23 million plus an undisclosed investment from Xerox. The most recent round was announced a little over a year ago, in November 2014. 

Just a few months ago, in September, HealthSpot announced a partnership with Samsung to eventually add point-of-care blood tests to its health station offering. The technology is still pending FDA-approval. Called the Samsung Labgeo PT10, the device is a smart, compact clinical chemistry analyzer.

Another health kiosk company, the more wellness-focused higi, recently raised $40 million from its existing investors. This $40 million is the first investment that higi has received since its merger with Stayhealthy, another health kiosk business, in August 2015. Prior to the merger, higi raised three undisclosed rounds.