As more states pass some type of abortion ban, Hey Jane, a virtual clinic startup offering telemedicine abortion care, announced Thursday that it raised $2.2 million in an oversubscribed round from a group of investors, including Koa Lab, Gaingels and Foursight Capital Partners.
The idea for the remote-first company stemmed from a conversation in 2019 that founder and CEO Kiki Freedman had with some friends regarding Missouri being one of six states that has one abortion clinic left. Freedman explained that, in fact, the clinic was slated for closure that summer, which would have meant Missouri was the first state to not have any abortion care. The clinic was ultimately able to stay open.
“At the time, many of the emerging telemedicine clinics I saw were focused on men’s wellness and didn’t talk about women’s health,” Freedman told TechCrunch. “I thought this virtual model could be used for safe and discreet abortion care.”
One of Hey Jane’s investors, who wished to remain publicly anonymous, “was excited to invest in Freedman and Hey Jane” because he agreed — women’s health was an underserved category. Unlike men’s healthcare, abortion care is segregated from women’s health care. This stemmed from Reagan’s mandates separating abortion care from hospitals.
One in four women will have an abortion by age 45, according to Planned Parenthood. However, just in 2021, over 90 abortion restrictions were enacted in the United States, and there are 1,320 restrictions in total, according to The Guttmacher Institute, a nonprofit research and policy organization committed to advancing sexual and reproductive health and rights. Currently, Arkansas and Oklahoma have near-total abortion bans except when a patient’s life is endangered. Meanwhile, Idaho, South Carolina and Texas ban abortion at either six weeks or with very limited exceptions.
In July 2020, a federal judge granted approval for women to obtain abortion medication without having to see a doctor, which opened the door for companies, like Hey Jane and others, to begin offering “no touch” services for people who were less than 10 weeks pregnant.
The $249 treatment includes screening by a medical doctor, FDA-approved medication prescribed and shipped overnight to the person’s house, follow-up virtual visits and the ability to chat with a doctor during the entire process. The Hey Jane team also checks in frequently with the patient via text message.
The company said removing financial barriers is “a huge priority for us.” Though the company does not accept insurance yet, it is offering financial assistance through a nonprofit abortion fund partner, Reprocare. This organization subsidizes up to $110 of the $249 treatment so that patients can pay as little as $139 for treatment.
The new funding will enable Hey Jane to expand into new states and add to its team of seven to build out the product and automated process and for legal research so the company can stay abreast of telemedicine laws and telemedicine abortion laws for each state.
There are several regulatory requirements Hey Jane must follow in each state, including ensuring that clinicians only provide care to patients in states in which they’re licensed. For this reason, the company has clinicians licensed in each state in which it operates who are ready to prescribe medication when appropriate. It also has on-demand experts for emotional relief.
Hey Jane just launched across California this week and is also in New York and Washington. This means that Hey Jane’s service areas now cover up to 34% of all abortions performed annually in the United States, Freedman said. Those states were chosen first because California and New York have the highest number of abortions performed annually, she added.
“Although people in those states may have easier access to clinics, they could still strongly benefit from treatment with Hey Jane since it’s as safe and effective and half the price of in-clinic care,” Freedman said. “It doesn’t require costs, or time for travel or child care, ensures privacy and discretion and provides additional layers of emotional support.”
Freedman expects to be in 10 states by the end of the year and plans to be able to offer treatment in all 50 states in coming years. However, there are regulatory barriers limiting access to telemedicine abortion in 19 states. Hey Jane is partnering with the Advancing New Standards in Reproductive Health research group out of the University of California at San Francisco to gather information to this end.
“We are working with leading researchers to expand the ample existing evidence that this modality of care is safe, effective and preferred by patients,” she added. “We hope this research can further advance discussions in more restrictive states, ultimately leading to much needed, patient-centric updates to outdated regulations. Existing data on the safety and effectiveness of telemedicine abortion paints a very clear picture that this is the future of abortion care.”
The company is currently seeing 250% quarterly growth in the number of patients using the service. As it has grown, it is focusing more on additional tools for coordinated care and new products.
Abortions are often kept secret due to worries of judgment and discrimination, and Hey Jane will provide a much-needed outlet for patients to discreetly share their experiences and emotion, Freedman said.
“We are focusing on convenience and privacy,” she added. “Two-thirds of women don’t want to talk about their experience, so we want to provide a space for them.”
Matters of women’s health are highly personal. If you or someone you know is struggling with a private women’s health concern, please contact your primary care physician or secular community health clinic for more information.
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