Pioneering Digital Pharmacy Enters Houston Market

Capsule’s Free Same-Day Prescription Delivery Helps Solve Pharmacy Desert and Medical Stigmatization Problems

Capsule, America’s leading digital pharmacy, officially announced its launch in the Houston area with a smarter, simpler, kinder, and better pharmacy, including free same-day delivery, smart refills to ensure a dose is never missed, and direct communication with pharmacists. Capsule makes medicine more accessible and convenient for millions of Houston area residents, including many of those who live in access-challenged pharmacy deserts. The product also allows for discreet delivery of frequently stigmatized medications, along with ongoing, confidential pharmacist care and advice by text, chat, or phone.

“Capsule’s mission has always been to build a pharmacy that works for everyone,” said Eric Kinariwala, founder and CEO, Capsule. “We believe that the core pharmacy experience is fundamentally broken for the hundreds of millions of Americans who take medication regularly, so we set out to rebuild that experience from the inside out.”

Capsule has digitized the entire pharmacy experience end-to-end with proprietary technology— eliminating familiar frustrations, such as persistently out-of-stock medications, long wait times, lack of price transparency, and the inability to obtain private and personalized advice from expert pharmacists. Instead of spending millions on corner stores or forcing people to wait while their medications are mailed to them, Capsule has invested in technology and delivery that enables same-day, hand-delivery of prescriptions to anyone in its service area, which includes all of Harris County and parts of Chambers, Fort Bend, Galveston, and Montgomery counties. Capsule accepts all major insurance plans, including Medicare and Medicaid, and works to find cost savings to pass on to consumers.

The expansion to Houston builds on Capsule’s existing operations in New York, Los Angeles, Chicago, Austin, Boston, and more than a dozen other U.S. cities. By year’s end, Capsule anticipates it will have the ability to serve 100 million Americans.

Seamless Customer Experience

Using Capsule is simple: once a customer has signed up through the Capsule app or website, their prescriptions are transferred from their current pharmacy to Capsule, which then sends a text to schedule free, same-day doorstep delivery.

Houstonians can also ask their doctors to send prescriptions directly to Capsule. Capsule is free; the only cost to consumers is their current insurance co-pay. Additionally, customers can call, text, or chat in real-time with expert pharmacists, see the cost of medications, view side-effects and medication information, and manage prescriptions and refills directly from their phones or computers.

The Growing Problem of Medication Non-Adherence

50% of prescriptions in America go unfilled. This problem, known as medication non-adherence, leads to $300 billion in additional healthcare costs. Many factors contribute to this problem, including the ability to easily access a pharmacy and pharmacist, concerns around privacy and stigmatization, and the familiar frustrations of the pharmacy leading to prescription abandonment.

Crossing the Pharmacy Desert

 One-third of all neighborhoods in the largest U.S. cities are pharmacy deserts, where residents must travel a mile or more to access their medications. This problem affects nearly fifteen million people nationwide and disproportionately impacts communities of color who already have lower rates of medication adherence and need to travel even farther to their nearest pharmacy to obtain their prescriptions. In Houston, studies show that more than 40% of Hispanic residents and over 70% of Black residents live in pharmacy deserts.

 This disparity is worsening as the pandemic—and changes in Medicaid laws—have accelerated the closure of pharmacies in Houston. According to USA Rx data, Harris County has just 1.39 pharmacies per 10,000 residents, well below the national average of 2.4.

“We know that there is a direct link between proximity to a pharmacy and prescription fill rates,” Kinariwala said. “And the consequences of failing to fill vital prescriptions can be dire. Capsule is a part of the solution.”

Privacy Matters

Studies have consistently shown that perceived stigma and concern about unintentional disclosures are also significant factors in low pharmacy refill adherence rates for medications related to behavioral health disorders, hormone replacement therapies, HIV treatment and prevention, reproductive health, and pain management. Capsule ensures that customers can discreetly fill their prescriptions and ask confidential questions to pharmacists via text, chat, or phone.

Simple, Delightful Healthcare: Capsule’s Future 

Capsule recently raised an additional $300 million in new capital, bringing its total funds raised to $570 million. The company plans to use the new resources to continue investing in its products and technology platform and to expand into new markets, with a goal of reaching 100 million people by the end of 2021. 

Capsule is also building a seamless customer experience that bridges the specific need for prescriptions and a full range of medical services.

“Capsule’s long-term ambition is to create a hub where consumers can access all of their healthcare needs in a single, simple, holistic place,” said Kinariwala. “We’re doing that in a way that brings together everybody in healthcare versus trying to own all of those things ourselves. Just like you buy a cell phone and choose apps, people will be able to access Capsule’s digital pharmacy, as well as a best-in-class curated set of products and services to meet all of their healthcare needs from within a single app.”