WEBVTT - Rocketship to Nowhere

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>This series features conversations about pregnancy, complications and loss. Please

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<v Speaker 2>take care while listening. By the beginning of twenty twenty two,

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<v Speaker 2>kind Body was riding high. It had opened thirteen clinics

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<v Speaker 2>in ten cities, and then in February, the company announced

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<v Speaker 2>a plan that would double its size. Kind Body said

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<v Speaker 2>it would acquire a larger competitor, a fertility chain called

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<v Speaker 2>Bios Fertility Institute. Unlike the venture capital and corporate world

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<v Speaker 2>that Kindbody's founder, Gina Bartesi came from, Bios was more

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<v Speaker 2>of a family business. It was founded in twenty fifteen

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<v Speaker 2>by a doctor named Angie Beltzos.

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<v Speaker 3>Angie is unique. She is extraordinarily talented as a physician,

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<v Speaker 3>and she has even more talent it as a clinical leader,

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<v Speaker 3>just as a leader in general.

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<v Speaker 2>That's Gina talking to Griffin Jones, host of the Inside

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<v Speaker 2>Reproductive Health podcast, back in twenty twenty two.

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<v Speaker 3>She knows a tremendous amount about business, about productivity, about margin.

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<v Speaker 2>With Bios, kind Body immediately doubled its number of clinics

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<v Speaker 2>from thirteen to twenty six, and Gina wasn't done. She

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<v Speaker 2>had her sights set on doubling the number of clinics again.

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<v Speaker 3>But we're opening Seattle, We're opening Dallas, Houston, Orange County, Miami, Charlotte,

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<v Speaker 3>We're opening Washington, DC next week. Our plan calls for

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<v Speaker 3>fifty locations within the next two years.

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<v Speaker 2>In one of their first appearances as a new company,

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<v Speaker 2>executives from Bios and kind Body ring the bell at

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<v Speaker 2>the New York Stock Exchange. That summer, doctors and executives

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<v Speaker 2>from the two fertility companies gathered for a retreat in

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<v Speaker 2>Chicago to kick off this new chapter. At the front

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<v Speaker 2>of the room was Gina selling a vision of the future.

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<v Speaker 2>A former marketing executive from kind Body remembers that day.

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<v Speaker 4>We're coming together, Bios and kind Body. We're all on board.

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<v Speaker 2>We are not using her real name. She and others

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<v Speaker 2>you'll hear from in this episode asked for anonymity because

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<v Speaker 2>kind Body has threatened legal action against employees they believed

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<v Speaker 2>were talking to journalists. A voice actor is reading what

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<v Speaker 2>she told me.

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<v Speaker 4>Here's where a focus is. Here's a motivator for the team.

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<v Speaker 4>I mean, Gina knows she knows how to command a room,

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<v Speaker 4>an excited room, and it was really just focused on

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<v Speaker 4>here's the growth. Here's how we're going to do it,

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<v Speaker 4>and we're all going to be so rich at the

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<v Speaker 4>end of this journey.

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<v Speaker 2>Gina Bartesi declined to comment for this series. A spokeswoman

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<v Speaker 2>said this was because of quote multiple factual inaccuracies, as

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<v Speaker 2>well as continued biased reporting given Bloomberg's lack of context

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<v Speaker 2>provide to readers regarding the fertility industry kind body and

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<v Speaker 2>her role as an experienced leader in the field. Asked

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<v Speaker 2>to identify specific inaccuracies, the spokeswoman declined to comment. Part

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<v Speaker 2>of the biosteal was that after the acquisition, Gina would

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<v Speaker 2>step back a CEO. She would stay on as chairman

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<v Speaker 2>of the board, but would hand over the reigns of

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<v Speaker 2>day to day operations in an effort to make room

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<v Speaker 2>for the Bios executives. Gina knew a lot about employee benefits,

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<v Speaker 2>egg freezing, and how to raise money, but the next

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<v Speaker 2>phase of growth needed leaders who knew how to grow

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<v Speaker 2>multiple IVF clinics at once, and Gina saw the founder

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<v Speaker 2>of Bios, Angie Beltzos, as the person who could do that.

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<v Speaker 2>Here's Gina again on the Inside Reproductive Health podcast.

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<v Speaker 3>Now I will tell you Angie has uped the game.

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<v Speaker 3>A lot of doctors I talked to are very comfortable

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<v Speaker 3>doing one hundred and fifty cases a year, and they

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<v Speaker 3>say that listen, I do ten to twelve cases them up.

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<v Speaker 3>I sell an IVF cycle for twenty five thousand dollars

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<v Speaker 3>and that's my model.

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<v Speaker 2>With Angie's help, Gina envisioned higher volumes of IVF.

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<v Speaker 3>You look at the physician productivity of her doctors and

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<v Speaker 3>it's extraordinary. One of her lead physicians did more than

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<v Speaker 3>one thousand cases last year. That's extraordinary.

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<v Speaker 2>Kind Bodies leaders also had their site set on an

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<v Speaker 2>initial public offering, the kind of move that can bring

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<v Speaker 2>a big payout for those who got into the company early.

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<v Speaker 5>He is the rocket ship analogy a lot.

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<v Speaker 4>We are on a rocket ship to the moon, and.

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<v Speaker 6>Then he always talked about, like the rocket ship, we're

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<v Speaker 6>going to like last to the moon and help everyone's fertility.

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<v Speaker 4>We're gonna get yellow planes. Everyone's gonna have a yellow plane.

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<v Speaker 4>Who's gonna buy the first plane?

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<v Speaker 2>Blind Bline. Amid all the talk of private jets and

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<v Speaker 2>worldwide expansion, the acquisition had saddled Kind Body with more

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<v Speaker 2>financial pressure, and it came at a time when the

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<v Speaker 2>start up was already struggling with operational issues from Bloomberg

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<v Speaker 2>and iHeart podcasts. This is IVF disrupted the kind Body story.

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<v Speaker 2>I'm Jackie Devalos. That spring, the two companies came together.

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<v Speaker 2>Employees were told it was the start of kind Body's

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<v Speaker 2>most exciting chapter.

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<v Speaker 1>Yet.

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<v Speaker 2>One of the executives who came over from Bios who

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<v Speaker 2>were calling Emily remembers the promises made. An actor is

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<v Speaker 2>reading what she told me.

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<v Speaker 1>It was a huge part of the deal was that

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<v Speaker 1>people wouldn't lose their jobs because the two companies came together,

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<v Speaker 1>that there was more than enough work to go around.

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<v Speaker 1>If we had redundant positions. We were growing, so let's

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<v Speaker 1>figure out how to reallocate someone, train someone on something new.

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<v Speaker 2>But the deal in kind Body's aggressive growth plans that

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<v Speaker 2>followed it were based on overly rosy assumptions, according to

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<v Speaker 2>what I heard from current and former executives. The company

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<v Speaker 2>didn't disclose how much it paid to buy Bios, but

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<v Speaker 2>former executives tell me it was substantial. Kind Body had

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<v Speaker 2>used up a lot of its cash and the expectation

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<v Speaker 2>was that the deal would result in more people coming

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<v Speaker 2>through the doors. The Bios locations were already up and running,

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<v Speaker 2>and they were quickly remodeled to fit the kind Body aesthetic.

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<v Speaker 2>These clinics were also profitable, something kind Body couldn't say

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<v Speaker 2>about many of its other clinics. According to internal documents,

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<v Speaker 2>I saw Atlanta, Austin, and some California locations were burning

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<v Speaker 2>through cash. This wasn't part of the plan. When they'd

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<v Speaker 2>originally opened. Kind Body had expected the retail centric clinics

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<v Speaker 2>would attract a flood of new people looking for fertility services.

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<v Speaker 2>They also expected deals with employers to translate into a

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<v Speaker 2>steady flow of business, but former employees and executives told

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<v Speaker 2>me it was more of a trick. Part of the

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<v Speaker 2>reason is because people just weren't using their IVF benefit

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<v Speaker 2>at the rate kind Body had projected. Another challenge was

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<v Speaker 2>that IVF patients take time to cultivate to build trust with.

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<v Speaker 2>Even so, the company continued to spend and expand they

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<v Speaker 2>were banking on patient volume catching up. Here's Emily the

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<v Speaker 2>former bios employee, again.

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<v Speaker 1>The honeymoonish period was probably maybe nine months. We weren't

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<v Speaker 1>getting IVF patients in the door. We weren't building the

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<v Speaker 1>IVF volume to then grow and hit the projections. That

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<v Speaker 1>we had if you work backwards. The numbers were created

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<v Speaker 1>on bad math. So yes, of course you have to

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<v Speaker 1>make hard decisions if you're not hitting your projections.

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<v Speaker 2>By the fall of twenty twenty two, layoffs began, and

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<v Speaker 2>according to Emily, they were done in waves.

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<v Speaker 1>The first round of layoffs just laid a horrific foundation

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<v Speaker 1>for profound anxiety. They're often rolling layoffs. There might have

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<v Speaker 1>been an initial batch and then everyone felt like, Okay,

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<v Speaker 1>I'm safe, and then two, three, four weeks later others

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<v Speaker 1>would trickle out, and that hit to productivity cannot be understated.

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<v Speaker 1>People were not able to do their best work ever. Again, really,

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<v Speaker 1>there was always this concern that they would be next.

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<v Speaker 2>According to internal documents, the cuts hit hardest among those

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<v Speaker 2>working directly with patients, medical assistance, billing staff, and a

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<v Speaker 2>roll kind body called financial navigators. Financial navigators worked remotely

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<v Speaker 2>handling patients across all kind body clinics. Here's one of them.

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<v Speaker 6>So I feel like the financial navigator is probably next

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<v Speaker 6>to the doctor. We will basically come in and we

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<v Speaker 6>will go over your benefits, we will verify anything. We

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<v Speaker 6>will be the person who gets any authorizations. If you

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<v Speaker 6>have insurance, we will then cancel you on anything that's

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<v Speaker 6>going into come out of pocket for you. If you

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<v Speaker 6>didn't pay, then you can't start your cycle. We're essentially

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<v Speaker 6>the last person you talked to before you start treatment.

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<v Speaker 2>For patients, financial navigators were more than just number crunchers.

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<v Speaker 2>They were guides through a complex and costly journey where

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<v Speaker 2>a single cycle of IVF could cost as much as

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<v Speaker 2>sixteen thousand dollars. But as the layoffs continued, the remaining

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<v Speaker 2>navigators found themselves overwhelmed.

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<v Speaker 5>Here's another There was probably ten or twelve people on

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<v Speaker 5>our team, and then at one point there were three

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<v Speaker 5>or four of us, and we were in charge of

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<v Speaker 5>all of the markets, all of the offices. And then

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<v Speaker 5>it was just like here's more work, and here's more work,

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<v Speaker 5>and here's more work, to the point where we were

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<v Speaker 5>on the phone with each other and on meetings with

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<v Speaker 5>each other just breaking down crime.

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<v Speaker 6>We had to do the phone calls, we had to

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<v Speaker 6>cut the money, we had to check the cycles, the schedules, like,

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<v Speaker 6>we had to do all of it, and we had

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<v Speaker 6>no help. I was drowning.

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<v Speaker 7>We were like, this rocket ship is like nose diving

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<v Speaker 7>right now, and if we're not going to jump off right. Now,

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<v Speaker 7>we're all doomed. There's no one on this rocket ship

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<v Speaker 7>that is going to survive.

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<v Speaker 2>The two financial navigators said they worried the mounting workload

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<v Speaker 2>would open them up to mistakes.

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<v Speaker 7>People are going to make errors. Things are going to happen,

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<v Speaker 7>The stations are going to happen. You would quote the

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<v Speaker 7>wrong amount, You could send the wrong patience financial estimate

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<v Speaker 7>to the wrong patient, you could attach the wrong thing.

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<v Speaker 7>Like we have to double check and triple track everything,

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<v Speaker 7>and if you didn't send the authorization with the right codes,

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<v Speaker 7>you'd have to go and start the whole process again,

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<v Speaker 7>which is a two week process than now, putting off

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<v Speaker 7>the patient's treatment.

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<v Speaker 2>With IVF, timing is everything. You're trying to sync up

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<v Speaker 2>multiple biological processes that normally happen naturally over weeks, from

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<v Speaker 2>getting the eggs to mature at just the right time

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<v Speaker 2>to ensuring the uterine lining is perfectly ready for implantation.

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<v Speaker 2>If your timing is off even by a day or two,

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<v Speaker 2>the whole cycle could be unsuccessful because embryos need exactly

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<v Speaker 2>the right conditions at exactly the right moment to have

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<v Speaker 2>the best chance of developing into a healthy pregnancy.

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<v Speaker 5>But if you made a mistake, it was the worst

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<v Speaker 5>thing in the entire world.

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<v Speaker 2>Patients frustrations with kind Body started showing up in negative

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<v Speaker 2>reviews online. The company was now being criticized for exactly

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<v Speaker 2>what it claimed to be fixing confusing bills, hitting costs,

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<v Speaker 2>and a lack of transparency. Patients described getting unexpected charges

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<v Speaker 2>weeks after procedures, insurance claims that were filed incorrectly, and

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<v Speaker 2>authorizations that arrived too late. These weren't just administrative headaches

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<v Speaker 2>for patients already stretching their finances to afford fertility treatment.

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<v Speaker 2>These mistakes could mean the difference between starting a cycle

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<v Speaker 2>or having to wait months to save up again. In

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<v Speaker 2>the c suite, some executives were losing confidence. Kind Body's

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<v Speaker 2>high profile CFO had quit after less than a year

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<v Speaker 2>on the job, and then the chief scientific officer left

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<v Speaker 2>the company. I reached out to both of them, and

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<v Speaker 2>neither wanted to speak to me for this podcast because

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<v Speaker 2>they signed non disclosure agreements. In written comments, kind Body

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<v Speaker 2>told me it hired more customer service staff and made

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<v Speaker 2>significant improvements to its billing processes. It disputed that the

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<v Speaker 2>former chief scientific officer lost confidence in the organization. And

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<v Speaker 2>said executives leave companies for various, often innocuous reasons. For

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<v Speaker 2>doctors and lab staff, the chief scientific officer leaving was

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<v Speaker 2>more than just another executive departure. He had been the

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<v Speaker 2>guardian of their scientific protocols, the person ensuring that the complex,

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<v Speaker 2>precise work of creating and handling embryos was done right.

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<v Speaker 2>Here's Emily, the former Bios executive again.

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<v Speaker 1>I think you can see some of the personnel changes

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<v Speaker 1>in the chief scientific officer role, and a lot of

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<v Speaker 1>movement in terms of who was in charge of labs

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<v Speaker 1>and people had to step in in interim fashions and

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<v Speaker 1>people left. Physicians were concerned. You can't just go grab

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<v Speaker 1>a benchtop scientist. It takes years, years to train as

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<v Speaker 1>skilled embryologist, and if you treat them as disposable people,

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<v Speaker 1>the word spreads.

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<v Speaker 2>The pressure to do more with less was already trickling

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<v Speaker 2>from the corporate offices all the way down to the

0:13:57.760 --> 0:14:03.280
<v Speaker 2>labs and in at Atlanta. Another preventable mistake would change

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<v Speaker 2>a woman's life forever. That's coming up. By the time

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<v Speaker 2>Vernita Pearsall started at Kind Bodies Atlanta Clinic in the

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<v Speaker 2>fall of twenty twenty two, the cracks were starting to show.

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<v Speaker 8>It seemed as if there was a revolving door when

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<v Speaker 8>it came to employees in the Atlanta office.

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<v Speaker 2>Vernita had seen her share of medical practices, but nothing

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<v Speaker 2>quite like this. While other kind body locations were also struggling,

0:14:37.960 --> 0:14:40.240
<v Speaker 2>she says, Atlanta was in free fall.

0:14:40.960 --> 0:14:44.040
<v Speaker 8>At one point, a lot of the executives came to

0:14:44.120 --> 0:14:48.640
<v Speaker 8>the office in Atlanta due to things occurring with so

0:14:49.200 --> 0:14:50.160
<v Speaker 8>much turnaround.

0:14:50.760 --> 0:14:53.720
<v Speaker 2>I saw an internal presentation that backed up what Vernita

0:14:53.800 --> 0:14:57.920
<v Speaker 2>was seeing. The Atlanta clinic had a staggering sixty four

0:14:58.000 --> 0:15:02.520
<v Speaker 2>percent turnover rate among its clinical staff. To handle the volume,

0:15:03.080 --> 0:15:06.520
<v Speaker 2>staff was told to move patients through their appointments even faster.

0:15:07.360 --> 0:15:12.000
<v Speaker 8>It was that feeling of a conveyor belt going in,

0:15:12.400 --> 0:15:17.000
<v Speaker 8>going out next, going in, going out next, And it

0:15:17.480 --> 0:15:27.000
<v Speaker 8>looked aesthetically like a soothing place, but in all actuality

0:15:27.560 --> 0:15:31.200
<v Speaker 8>that was not the case. It was pretty much let's

0:15:31.280 --> 0:15:33.360
<v Speaker 8>get them in, let's get them out.

0:15:34.320 --> 0:15:38.320
<v Speaker 2>Former employees told me. Staff inside the embryology lab, which

0:15:38.360 --> 0:15:42.040
<v Speaker 2>required the most precise and time intensive work, was burned out.

0:15:42.800 --> 0:15:45.040
<v Speaker 2>They struggled to keep up with a patient load that

0:15:45.160 --> 0:15:47.560
<v Speaker 2>kept growing even as their team kept shrinking.

0:15:48.200 --> 0:15:51.320
<v Speaker 8>A lot of times. They were there before I started,

0:15:52.040 --> 0:15:56.840
<v Speaker 8>and they were there after I would go home, and

0:15:57.200 --> 0:16:01.640
<v Speaker 8>they had to work many weekends, many holidays.

0:16:02.400 --> 0:16:06.320
<v Speaker 2>In text messages shared with me, one embryologist in Atlanta

0:16:06.560 --> 0:16:10.320
<v Speaker 2>told a fellow staffer quote, I have to be coach,

0:16:10.640 --> 0:16:14.280
<v Speaker 2>quarterback and wide receiver. We do not have the space,

0:16:14.480 --> 0:16:18.320
<v Speaker 2>equipment and people for this level of volume. It's dangerous

0:16:18.400 --> 0:16:23.120
<v Speaker 2>and not sustainable. I spoke to five former embryologists who

0:16:23.200 --> 0:16:26.720
<v Speaker 2>worked in the Atlantic Clinic. They all described the same

0:16:26.840 --> 0:16:31.400
<v Speaker 2>crushing workload, the constant turnover, the feeling that it was

0:16:31.440 --> 0:16:35.040
<v Speaker 2>only a matter of time before something went wrong, and

0:16:35.080 --> 0:16:39.040
<v Speaker 2>then one day, in March of twenty twenty three, it did.

0:16:41.840 --> 0:16:45.040
<v Speaker 2>Among the dozens of patient reviews and complaints I encountered

0:16:45.080 --> 0:16:49.800
<v Speaker 2>while reporting this story, one stood out. A Google review

0:16:50.160 --> 0:16:54.360
<v Speaker 2>that described a disappointing experience at the Atlantic Clinic. It

0:16:54.400 --> 0:16:58.200
<v Speaker 2>was a devastating error, one that would reveal just how

0:16:58.280 --> 0:17:02.640
<v Speaker 2>dangerous Kind Bodies staffing crime had become. Here's Vernita reading

0:17:02.640 --> 0:17:03.120
<v Speaker 2>the review.

0:17:03.480 --> 0:17:07.480
<v Speaker 8>She put, I recently had a very disappointing experience with

0:17:07.640 --> 0:17:14.359
<v Speaker 8>Kind Body Fertility Clinic that I cannot in good conscience recommend. Unfortunately,

0:17:14.720 --> 0:17:19.360
<v Speaker 8>they gave me the wrong measurement of medication during my treatment,

0:17:19.960 --> 0:17:25.000
<v Speaker 8>which led to a lot of complications and stress. Despite

0:17:25.160 --> 0:17:28.800
<v Speaker 8>all the issues, we were able to proceed with one

0:17:29.000 --> 0:17:30.560
<v Speaker 8>embryo for transfer.

0:17:31.720 --> 0:17:32.720
<v Speaker 5>Wow.

0:17:32.800 --> 0:17:36.240
<v Speaker 8>On the day of the transfer, however, things went from

0:17:36.320 --> 0:17:41.080
<v Speaker 8>bad to worse. The clinic staff were unable to identify,

0:17:41.520 --> 0:17:45.600
<v Speaker 8>Oh my God, which embryo was ours because they had

0:17:45.680 --> 0:17:52.320
<v Speaker 8>some unlabeled embryos in their storage. This was extremely frustrating

0:17:52.440 --> 0:17:57.440
<v Speaker 8>and concerning, and left thus feeling very uncertain about the

0:17:57.640 --> 0:17:58.719
<v Speaker 8>entire process.

0:18:00.000 --> 0:18:02.560
<v Speaker 2>I spoke to four employees who were at the Atlanta

0:18:02.600 --> 0:18:06.399
<v Speaker 2>location the day this review is about. None would speak

0:18:06.400 --> 0:18:10.600
<v Speaker 2>on the record, fearing legal retaliation from Kind Body, but

0:18:10.640 --> 0:18:13.399
<v Speaker 2>the patient herself agreed to talk with me when I

0:18:13.440 --> 0:18:17.239
<v Speaker 2>traveled to Atlanta to investigate what happened. She asked not

0:18:17.359 --> 0:18:20.960
<v Speaker 2>to be identified, explaining that as an immigrant in a

0:18:21.000 --> 0:18:24.399
<v Speaker 2>tight knit religious community, even sharing her story could have

0:18:24.520 --> 0:18:28.359
<v Speaker 2>serious consequences. A voice actor will read what she told me.

0:18:29.920 --> 0:18:34.320
<v Speaker 9>We are religious people, and our community will avoid us

0:18:34.440 --> 0:18:35.760
<v Speaker 9>if they hear about this.

0:18:36.640 --> 0:18:39.320
<v Speaker 2>I'll call her Ayana. She was thirty nine years old

0:18:39.400 --> 0:18:42.280
<v Speaker 2>when she walked into Kind Bodies Atlanta clinic that March morning,

0:18:42.680 --> 0:18:45.720
<v Speaker 2>carrying with her three years of hope and heartbreak. She'd

0:18:45.720 --> 0:18:49.879
<v Speaker 2>been through multiple egg retrievals, most unsuccessful. Out of the

0:18:49.880 --> 0:18:53.240
<v Speaker 2>few eggs they'd managed to retrieve, only one had developed

0:18:53.240 --> 0:18:56.399
<v Speaker 2>into a viable embryo. She was there that day for

0:18:56.480 --> 0:18:59.960
<v Speaker 2>her transfer, the culmination of a fertility journey.

0:19:00.200 --> 0:19:01.920
<v Speaker 9>That was our only opportunity.

0:19:02.560 --> 0:19:05.439
<v Speaker 2>Instead, she and her husband spent three hours in a

0:19:05.440 --> 0:19:07.760
<v Speaker 2>waiting room before learning what happened.

0:19:08.000 --> 0:19:11.120
<v Speaker 9>On the transfer date. When we reached there at twelve,

0:19:11.320 --> 0:19:15.160
<v Speaker 9>like midday, and they told us like about three o'clock,

0:19:16.240 --> 0:19:19.240
<v Speaker 9>like they were like, I don't know how to say it.

0:19:19.480 --> 0:19:24.600
<v Speaker 9>They were like messed up. They call everyone and like

0:19:24.760 --> 0:19:28.520
<v Speaker 9>put us in one room and like, I don't know.

0:19:28.880 --> 0:19:32.040
<v Speaker 9>They hold us like more than three hours.

0:19:32.359 --> 0:19:36.040
<v Speaker 2>When the doctor finally came in to explain, Ayana could

0:19:36.080 --> 0:19:37.879
<v Speaker 2>barely process the words.

0:19:38.400 --> 0:19:41.640
<v Speaker 9>They just stand in front of me. I was crying.

0:19:42.520 --> 0:19:45.480
<v Speaker 9>They told us they don't have the embryo.

0:19:46.680 --> 0:19:49.879
<v Speaker 2>They're one embryo. Their only chance at having a child

0:19:50.520 --> 0:19:55.000
<v Speaker 2>had been mislabeled. The clinic had an embryo, but they

0:19:55.040 --> 0:19:58.080
<v Speaker 2>said they couldn't be sure it was a Yana's. The

0:19:58.200 --> 0:20:01.560
<v Speaker 2>only way to confirm would be through genetic testing, a

0:20:01.600 --> 0:20:07.320
<v Speaker 2>procedure that carried its own risks. Many patients choose to

0:20:07.359 --> 0:20:10.479
<v Speaker 2>genetically test embryos before a transfer to make sure they

0:20:10.520 --> 0:20:14.600
<v Speaker 2>have the correct number of chromosomes. It helps detect abnormalities

0:20:14.640 --> 0:20:18.840
<v Speaker 2>that can result in serious genetic conditions that process, though

0:20:19.280 --> 0:20:22.480
<v Speaker 2>it has its own risks. It involves taking a little

0:20:22.480 --> 0:20:26.199
<v Speaker 2>piece of the embryo and can sometimes damage it. Some

0:20:26.320 --> 0:20:28.800
<v Speaker 2>doctors recommend that patients who don't have a lot of

0:20:28.840 --> 0:20:32.760
<v Speaker 2>embryos to work with skip such testing. Ayana and her

0:20:32.840 --> 0:20:36.359
<v Speaker 2>husband had opted not to do genetic testing before, and

0:20:36.400 --> 0:20:39.280
<v Speaker 2>they didn't want to do it now because of her

0:20:39.320 --> 0:20:42.840
<v Speaker 2>religious beliefs. Ayana said she would have carried the baby

0:20:43.200 --> 0:20:46.000
<v Speaker 2>even if they had detected an abnormality, but.

0:20:46.040 --> 0:20:49.840
<v Speaker 9>They told us, we have one option, which is they

0:20:49.920 --> 0:20:52.800
<v Speaker 9>need to test it to know if it is ours

0:20:52.960 --> 0:20:56.399
<v Speaker 9>or not. The situation pushed us to do that.

0:20:57.520 --> 0:21:00.399
<v Speaker 2>Despite her misgivings, she went ahead and got the test.

0:21:01.400 --> 0:21:04.359
<v Speaker 2>A kind body doctor called and confirmed the embryo was

0:21:04.400 --> 0:21:10.720
<v Speaker 2>indeed theirs, but revealed something else, an abnormality. Ayana said

0:21:10.720 --> 0:21:13.639
<v Speaker 2>the doctor didn't tell her what the abnormality was and

0:21:13.680 --> 0:21:17.080
<v Speaker 2>didn't explain the results. The doctor only told her that

0:21:17.119 --> 0:21:21.560
<v Speaker 2>the embryo had to be discarded. Normally, when an embryo

0:21:21.640 --> 0:21:25.000
<v Speaker 2>is genetically tested, patients get a copy of the report,

0:21:25.320 --> 0:21:27.880
<v Speaker 2>and a doctor or a counselor walks a patient through

0:21:27.920 --> 0:21:30.720
<v Speaker 2>what it means. But Ayana told me she and her

0:21:30.800 --> 0:21:34.199
<v Speaker 2>husband weren't given any paperwork, and no one explained what

0:21:34.280 --> 0:21:41.399
<v Speaker 2>the test had revealed about their last embryo. Many patients

0:21:41.440 --> 0:21:43.840
<v Speaker 2>who go through IVF have a hard time knowing what

0:21:43.880 --> 0:21:47.480
<v Speaker 2>to ask in these tense moments. For Ayana, she says

0:21:47.560 --> 0:21:50.240
<v Speaker 2>the fact that English was not her first language made

0:21:50.280 --> 0:21:54.040
<v Speaker 2>it even more difficult. Discarding an embryo was a big

0:21:54.080 --> 0:21:58.280
<v Speaker 2>decision and went against Ayana's religious principles. She said she

0:21:58.320 --> 0:22:01.040
<v Speaker 2>felt pushed into a decision she didn't want to make,

0:22:01.960 --> 0:22:04.679
<v Speaker 2>but she also felt she didn't have any information to

0:22:04.680 --> 0:22:09.439
<v Speaker 2>be able to push back. The doctor was apologetic and

0:22:09.520 --> 0:22:10.960
<v Speaker 2>offered a free round of IVF.

0:22:11.800 --> 0:22:14.159
<v Speaker 9>She told me, if you work with us, if you

0:22:14.320 --> 0:22:18.520
<v Speaker 9>continue with us, we offer you another cycle. We will

0:22:18.560 --> 0:22:19.600
<v Speaker 9>take care of everything.

0:22:20.560 --> 0:22:22.440
<v Speaker 2>I talked to kind Body when I first learned of

0:22:22.480 --> 0:22:25.720
<v Speaker 2>this incident. A spokeswoman said that kind Body bought a

0:22:25.760 --> 0:22:29.639
<v Speaker 2>tracking system to try to minimize human errors. It's called

0:22:29.680 --> 0:22:34.240
<v Speaker 2>electronic witnessing, and it gives each patience eggs, sperm, and

0:22:34.320 --> 0:22:38.280
<v Speaker 2>embryos unique barcodes that must be scanned at every step.

0:22:38.880 --> 0:22:42.960
<v Speaker 2>The software tracks who handles the materials and when requiring

0:22:43.119 --> 0:22:47.240
<v Speaker 2>verification before allowing procedures to move forward. A Kind Body

0:22:47.280 --> 0:22:50.800
<v Speaker 2>spokeswoman said at the time that this technology was used

0:22:50.800 --> 0:22:53.520
<v Speaker 2>in ninety percent of its labs, and she says that

0:22:53.640 --> 0:22:57.280
<v Speaker 2>now it's used in all of them, But former employees

0:22:57.320 --> 0:23:00.000
<v Speaker 2>told me the problem was that they weren't properly trained

0:23:00.160 --> 0:23:03.040
<v Speaker 2>on how to use it, something that Kind Body disputes.

0:23:03.920 --> 0:23:06.680
<v Speaker 2>My story about lab errors at kind Body was published

0:23:06.680 --> 0:23:09.679
<v Speaker 2>in October of twenty twenty three, two months after I

0:23:09.720 --> 0:23:13.119
<v Speaker 2>spoke with Yana. In it, I wrote about what happened

0:23:13.119 --> 0:23:16.640
<v Speaker 2>to Ayana, to Dina and b and to other patients.

0:23:17.440 --> 0:23:21.600
<v Speaker 2>I'd learned of multiple incidents of embryos being mislabeled, lost,

0:23:21.920 --> 0:23:26.520
<v Speaker 2>or accidentally destroyed at four different Kind Body clinics. After

0:23:26.600 --> 0:23:30.280
<v Speaker 2>my article was published, Gina wrote a blog post in response.

0:23:31.040 --> 0:23:34.800
<v Speaker 2>It said, in part quote, I'm proud that our doctors

0:23:34.800 --> 0:23:37.840
<v Speaker 2>are candid and tell the patient the truth rather than

0:23:37.880 --> 0:23:40.240
<v Speaker 2>hide any mistake made by a human in the lab.

0:23:40.880 --> 0:23:44.200
<v Speaker 2>We also buy upsided the embryo to ensure its genetic material,

0:23:44.480 --> 0:23:47.399
<v Speaker 2>and it came back and euploidy, which meant it was

0:23:47.440 --> 0:23:50.640
<v Speaker 2>abnormal and would likely have not have been transferred anyway,

0:23:51.400 --> 0:23:54.000
<v Speaker 2>So we didn't have to be honest, but we were.

0:23:55.040 --> 0:23:59.320
<v Speaker 2>The outcome would have been the same an unsuccessful IVF cycle,

0:23:59.520 --> 0:24:02.439
<v Speaker 2>which on fortunately happens about one third of the time,

0:24:02.600 --> 0:24:07.080
<v Speaker 2>and even the best IVF clinics, including our own. But

0:24:07.080 --> 0:24:10.359
<v Speaker 2>Ayana told me she felt robbed of the opportunity of

0:24:10.359 --> 0:24:14.280
<v Speaker 2>at least trying to transfer the embryo as planned. When

0:24:14.320 --> 0:24:18.000
<v Speaker 2>we spoke about six months after the error was discovered,

0:24:18.760 --> 0:24:21.240
<v Speaker 2>she said it didn't matter if it had been abnormal,

0:24:21.640 --> 0:24:24.879
<v Speaker 2>that God had gifted them that one embryo and it

0:24:24.960 --> 0:24:29.119
<v Speaker 2>was their choice, their chance to take. On top of that,

0:24:29.760 --> 0:24:32.200
<v Speaker 2>she had doubts about whether kind body was even telling

0:24:32.240 --> 0:24:36.640
<v Speaker 2>the truth about the abnormality. She kept thinking why had

0:24:36.680 --> 0:24:40.320
<v Speaker 2>they jumped to discard the embryo so quickly, Why wasn't

0:24:40.359 --> 0:24:43.960
<v Speaker 2>she at least given the chance to transfer, And unlike

0:24:44.040 --> 0:24:47.560
<v Speaker 2>other patients who might have sought legal recourse, she said

0:24:47.600 --> 0:24:49.600
<v Speaker 2>she felt trapped by her circumstances.

0:24:50.400 --> 0:24:54.960
<v Speaker 9>The situation. If it was different people like Americans, it

0:24:55.040 --> 0:24:58.920
<v Speaker 9>was different. I think if it happened on you. For example,

0:24:59.680 --> 0:25:03.919
<v Speaker 9>I think think it was like not this. Maybe you

0:25:04.119 --> 0:25:09.840
<v Speaker 9>sue them, you do something. But I'm a foreigner and

0:25:09.920 --> 0:25:14.800
<v Speaker 9>I'm religious, so my situation doesn't allow me to do anything.

0:25:15.720 --> 0:25:18.399
<v Speaker 2>Ayana opted to do the free cycle kind Body offered,

0:25:19.080 --> 0:25:23.080
<v Speaker 2>but it didn't yield any eggs. By that point, Ayana

0:25:23.200 --> 0:25:27.160
<v Speaker 2>was forty. After six IVF cycles and tens of thousands

0:25:27.160 --> 0:25:29.920
<v Speaker 2>of dollars spent, she and her husband started looking into

0:25:29.920 --> 0:25:35.520
<v Speaker 2>adoption instead. It's really hard to get a complete picture

0:25:35.680 --> 0:25:38.200
<v Speaker 2>of what kind of errors may be happening in US

0:25:38.240 --> 0:25:42.000
<v Speaker 2>fertility clinics, whether they're at kind Body or anyone else's.

0:25:42.840 --> 0:25:46.040
<v Speaker 2>It's not an easy question to answer because, unlike other

0:25:46.119 --> 0:25:50.200
<v Speaker 2>types of medical facilities, there is no regulation requiring fertility

0:25:50.200 --> 0:25:55.399
<v Speaker 2>clinics to track lost, mishandled, or destroyed embryos, let alone

0:25:55.440 --> 0:25:59.720
<v Speaker 2>report them to any public database. There's the Clinical Laboratory

0:25:59.760 --> 0:26:03.520
<v Speaker 2>and Provement Amendments, also known as CLIA. It's a federal

0:26:03.560 --> 0:26:06.959
<v Speaker 2>statute that regulates testing and oversees some aspects of an

0:26:06.960 --> 0:26:11.040
<v Speaker 2>IVF clinic, like blood and semen testing. But crucially, CLIA

0:26:11.160 --> 0:26:14.680
<v Speaker 2>does not oversee the embryology lab, where the most sensitive

0:26:14.680 --> 0:26:19.360
<v Speaker 2>material is handled to fill the gap. Nonprofits and industry

0:26:19.400 --> 0:26:23.280
<v Speaker 2>groups have stepped in. The big one is CAP, also

0:26:23.400 --> 0:26:27.719
<v Speaker 2>known as the College of American Pathologists. CAP issues guidelines

0:26:28.359 --> 0:26:30.720
<v Speaker 2>like how many people should be on staff or the

0:26:30.760 --> 0:26:34.480
<v Speaker 2>optimal temperature for the lab. Clinics can get CAP accreditation

0:26:34.560 --> 0:26:37.560
<v Speaker 2>if they adopt these measures, and getting the stamp of

0:26:37.600 --> 0:26:42.920
<v Speaker 2>approval lends credibility, but that's really it. CAP cannot shut

0:26:42.960 --> 0:26:45.359
<v Speaker 2>down a clinic if it finds it's not in compliance.

0:26:46.520 --> 0:26:48.720
<v Speaker 2>In short, CAP has no teeth.

0:26:49.440 --> 0:26:51.800
<v Speaker 10>There are guidelines, but there are no requirements.

0:26:52.480 --> 0:26:56.520
<v Speaker 2>This is Evashennkman again. She's the embryologist who interviewed with

0:26:56.640 --> 0:26:59.280
<v Speaker 2>kind Body back when the company was just starting out.

0:27:00.000 --> 0:27:03.800
<v Speaker 2>He runs her own embryology school that trains young scientists

0:27:03.840 --> 0:27:06.840
<v Speaker 2>who want to go into IVF, and she consults for

0:27:06.880 --> 0:27:09.080
<v Speaker 2>clinics that want to open up labs of their own.

0:27:09.520 --> 0:27:11.520
<v Speaker 10>Just like you can go to a department health website

0:27:11.520 --> 0:27:13.960
<v Speaker 10>and look up physicians record, you can see how often

0:27:14.320 --> 0:27:17.440
<v Speaker 10>they have malpractice claims. You don't have that for the laboratory.

0:27:17.920 --> 0:27:20.520
<v Speaker 10>You don't know who that wizard is behind the curtain.

0:27:20.560 --> 0:27:23.600
<v Speaker 10>Is that somebody you know who's been involved in several

0:27:23.640 --> 0:27:26.639
<v Speaker 10>major mix up cases, and even if they're doing something egregious,

0:27:26.680 --> 0:27:29.439
<v Speaker 10>there's no board that steps in and investigates. You know,

0:27:29.480 --> 0:27:31.719
<v Speaker 10>maybe this person shouldn't be working in the lab anymore.

0:27:31.800 --> 0:27:34.199
<v Speaker 10>Maybe we can do some retraining so that this mistake

0:27:34.240 --> 0:27:36.959
<v Speaker 10>doesn't happen again. And that's the part that really started

0:27:37.000 --> 0:27:38.120
<v Speaker 10>to make me angry.

0:27:38.720 --> 0:27:42.320
<v Speaker 2>There is no requirement for fertility clinics to report incidents

0:27:42.480 --> 0:27:47.159
<v Speaker 2>caused by human error or other preventable mistakes. By contrast,

0:27:47.600 --> 0:27:51.040
<v Speaker 2>Eva points out that some countries in Europe have regulatory

0:27:51.080 --> 0:27:52.639
<v Speaker 2>agencies that track mistakes.

0:27:53.119 --> 0:27:55.199
<v Speaker 10>One of my colleagues there in Ireland sent me a

0:27:55.240 --> 0:27:57.560
<v Speaker 10>text message a couple of weeks ago when we're talking

0:27:57.560 --> 0:27:59.560
<v Speaker 10>about some of the issues here. She's like, you're really

0:27:59.600 --> 0:28:02.680
<v Speaker 10>telling me that you don't have to report if there's

0:28:02.720 --> 0:28:05.240
<v Speaker 10>a serious error in the lab, Like there's no proactive

0:28:05.280 --> 0:28:08.040
<v Speaker 10>reporting where you get somebody that comes in and investigates you.

0:28:08.119 --> 0:28:11.439
<v Speaker 10>I said, no, it is not, and that just blows

0:28:11.440 --> 0:28:14.800
<v Speaker 10>their mind. It was really shocking to them, because what

0:28:15.000 --> 0:28:18.560
<v Speaker 10>prevents you from making that error once a year, twice

0:28:18.560 --> 0:28:21.800
<v Speaker 10>a year every other year. The vast majority of clinics

0:28:21.800 --> 0:28:25.680
<v Speaker 10>do a very good job in providing great care to patients.

0:28:25.720 --> 0:28:27.679
<v Speaker 10>But also how do we protect against the clinics that

0:28:27.680 --> 0:28:30.040
<v Speaker 10>aren't following the rules or following the guidelines.

0:28:30.680 --> 0:28:33.520
<v Speaker 2>Many of these errors are never known to people trying

0:28:33.560 --> 0:28:36.880
<v Speaker 2>to decide which fertility clinic to go to. You can't

0:28:36.960 --> 0:28:40.680
<v Speaker 2>google their error rates, and looking up a clinic's history

0:28:40.680 --> 0:28:44.760
<v Speaker 2>of lawsuits may not be that revealing. Many errors never

0:28:44.800 --> 0:28:48.240
<v Speaker 2>make it into the public record because patients sign arbitration

0:28:48.360 --> 0:28:51.840
<v Speaker 2>agreements that prohibit them from speaking publicly about what happened

0:28:51.880 --> 0:28:52.760
<v Speaker 2>to them.

0:28:52.720 --> 0:28:57.240
<v Speaker 11>And what's that about. It's because fertility clinics operate in

0:28:57.400 --> 0:29:02.760
<v Speaker 11>such a highly competitive space where a clinic never wants

0:29:02.800 --> 0:29:05.800
<v Speaker 11>to be known as that entity that has dropped somebody's

0:29:05.800 --> 0:29:07.360
<v Speaker 11>ex or embryos on the ground.

0:29:08.040 --> 0:29:11.320
<v Speaker 2>Adam Wolf is a partner at Piferwolf, a law firm

0:29:11.320 --> 0:29:15.440
<v Speaker 2>that specializes in fertility cases. Adam declined to say whether

0:29:15.520 --> 0:29:18.320
<v Speaker 2>he had cases with kind Body, but he did talk

0:29:18.360 --> 0:29:20.440
<v Speaker 2>about the kind of calls he gets all the time

0:29:20.480 --> 0:29:22.160
<v Speaker 2>from patients of fertility clinics.

0:29:22.960 --> 0:29:27.200
<v Speaker 11>We get calls from people who are just devastated by

0:29:27.240 --> 0:29:32.280
<v Speaker 11>the results, usually the failures of their of the fertility

0:29:32.320 --> 0:29:37.640
<v Speaker 11>work from their fertility clinic. And sometimes that is just

0:29:37.720 --> 0:29:41.840
<v Speaker 11>the natural byproduct of fertility work. It's not always successful,

0:29:41.880 --> 0:29:45.320
<v Speaker 11>even under the best of circumstances. But in many of

0:29:45.320 --> 0:29:48.800
<v Speaker 11>the occasions where our potential clients call us, what we

0:29:48.920 --> 0:29:53.240
<v Speaker 11>uncover is that the failure of a particular IVF cycle

0:29:53.320 --> 0:29:56.360
<v Speaker 11>or other work in a fertility clinic is the result

0:29:56.520 --> 0:29:59.680
<v Speaker 11>of misconduct or certain types of negligence.

0:30:04.480 --> 0:30:06.800
<v Speaker 2>Adam has seen some of the worst mistakes in this

0:30:06.840 --> 0:30:10.040
<v Speaker 2>field happen at all sorts of clinics. One of his

0:30:10.120 --> 0:30:13.440
<v Speaker 2>clients discovered after she gave birth that the baby boy

0:30:13.520 --> 0:30:17.240
<v Speaker 2>she had carried wasn't hers, and she was devastated when

0:30:17.280 --> 0:30:19.880
<v Speaker 2>she had to turn the baby over to his biological parents.

0:30:21.080 --> 0:30:23.800
<v Speaker 2>Another one of his clients alleged that their clinic let

0:30:23.880 --> 0:30:27.320
<v Speaker 2>seven of their embryos dry out, destroying all of them.

0:30:27.600 --> 0:30:30.040
<v Speaker 2>The couple sued the clinic, but then reached a settlement

0:30:30.040 --> 0:30:33.520
<v Speaker 2>out of court. Adam says, the majority of incidents like

0:30:33.600 --> 0:30:36.360
<v Speaker 2>these never become public because.

0:30:36.000 --> 0:30:40.920
<v Speaker 11>We end up settling those cases with a confidentiality agreement

0:30:41.920 --> 0:30:45.240
<v Speaker 11>that prohibits anybody from talking about that case or those

0:30:45.400 --> 0:30:49.760
<v Speaker 11>errors publicly. Now, that makes a lot of sense for

0:30:49.840 --> 0:30:54.520
<v Speaker 11>the fertility clinic which wants to hide its errors, but

0:30:54.600 --> 0:30:58.400
<v Speaker 11>it creates a big public problem, which is that the

0:30:58.440 --> 0:31:03.160
<v Speaker 11>public doesn't know about the vast majority of errors that

0:31:03.240 --> 0:31:06.440
<v Speaker 11>we have seen in fertility clinics and that have caused

0:31:06.440 --> 0:31:07.479
<v Speaker 11>our clients to suffer.

0:31:13.000 --> 0:31:18.640
<v Speaker 2>Coming up on IVF disrupted the Kind Body story. With

0:31:18.840 --> 0:31:24.000
<v Speaker 2>Kind Bodies cash reserves dwindling, the question arises, do its

0:31:24.040 --> 0:31:26.920
<v Speaker 2>patients really need everything it's selling.

0:31:30.240 --> 0:31:32.960
<v Speaker 4>At your white coat ceremony, which is the first thing

0:31:33.000 --> 0:31:36.320
<v Speaker 4>you participate in before you start med school. You take

0:31:36.360 --> 0:31:40.320
<v Speaker 4>that oath, and that oath is first, do no harm.

0:31:40.920 --> 0:31:45.600
<v Speaker 12>My good friend who went through another clinic, she kept

0:31:45.640 --> 0:31:47.240
<v Speaker 12>kind of mentioning like because I was like, so, did

0:31:47.240 --> 0:31:50.440
<v Speaker 12>you pay for the extra however, couple hundred bucks for

0:31:50.480 --> 0:31:53.200
<v Speaker 12>embryo glue? She was like embryo glue. Like I never

0:31:53.200 --> 0:31:55.960
<v Speaker 12>heard of embryo glue. And I was like, oh, like,

0:31:56.400 --> 0:32:00.240
<v Speaker 12>we just paid four hundred bucks this round for embryo glue.

0:32:00.800 --> 0:32:03.600
<v Speaker 3>I just went through two weeks of medications and traveled

0:32:03.600 --> 0:32:07.120
<v Speaker 3>here and spent thousands of dollars for this procedure, and

0:32:07.200 --> 0:32:08.840
<v Speaker 3>you're telling me I didn't need to do it.

0:32:09.400 --> 0:32:12.040
<v Speaker 4>I'm not a salesperson when it comes to medical care.

0:32:16.000 --> 0:32:20.080
<v Speaker 2>IVF disrupted The Kind Body Story is reported and hosted

0:32:20.120 --> 0:32:24.480
<v Speaker 2>by me Jackie Devalos. The series is produced by Sean

0:32:24.600 --> 0:32:29.920
<v Speaker 2>Len and Jilda Decarly, editing by Caitlin Kenney, Jeff Grocott

0:32:30.200 --> 0:32:34.720
<v Speaker 2>and Joshua Brustein. Blake Maples is our sound engineer. Voice

0:32:34.720 --> 0:32:38.440
<v Speaker 2>acting in this episode was provided by Diana Johnston, Tina

0:32:38.480 --> 0:32:42.920
<v Speaker 2>Marie Murray, and Rosanna Pilcher. Fact checking by Anica Robbins.

0:32:43.440 --> 0:32:47.920
<v Speaker 2>Bloomberg Senior Executive Editor for Technology is Tom Giles. Our

0:32:47.960 --> 0:32:51.719
<v Speaker 2>head of podcasting is Sage Bauman. You can reach us

0:32:51.720 --> 0:32:55.360
<v Speaker 2>at podcasts at Bloomberg dot net. IVF Disrupted is a

0:32:55.400 --> 0:33:00.480
<v Speaker 2>production of Bloomberg and iHeart Podcasts S