Quit Genius Becomes The First Substance Use Disorder Treatment Provider To Put 100% of Fees at Risk, Guaranteeing Performance and Value For Virtual Addiction Treatment

Press Release

NEW YORK, NY, July 13, 2022Quit Genius, the world’s first digital clinic for treating multiple substance addictions, announced today that it has moved to a new 100-Percent-Fees-at-Risk pricing model, which means the company gets paid only if it meets strict clinical, engagement, satisfaction and operational performance goals. Quit Genius, which sells to employers and health plans, is the first provider in its category to move to a fully at-risk pricing model.

“Since founding Quit Genius, every contract we have signed has included fees at risk, so moving to a full-risk model is a natural evolution in our mission to help 100 million people conquer their substance addictions,” said Yusuf Sherwani, M.D., co-founder and CEO of Quit Genius. “We also recognize that in an increasingly uncertain economic environment, value-based care models will become more important than ever. It has always been clear to us that improving access to preventive SUD treatment is not just the right thing for members, but also a responsible business decision and one that will lead to a clear reduction in healthcare costs.”

Previously, Quit Genius offered 50 percent fees at risk, alongside a bundled case rate fee. Now, if Quit Genius misses performance goals, clients are eligible to receive up to 100 percent of the total fees paid. Performance guarantees are measured annually, but clients also receive quarterly performance updates to measure whether Quit Genius is on-track to meet them. Since launching to employers and health plans in 2020, the company has never missed a performance goal.

The average success rate for people in the Quit Genius tobacco program is 52 percent, far higher than traditional methods. Members enrolled in the Quit Genius alcohol program have a 62 percent reduction in alcohol use frequency within the first 30 days of care. And, on average, 51 percent of members that participate in opioid Medication-Assisted Treatment programs report negative opioid tests after 20 days in the program. Members access the Quit Genius program via their employee benefits provider.

Already recognized as the #1 digital clinic for substance addictions, Quit Genius grew revenue by 10x in 2021 and now partners with more than 100 employer and health plan clients covering 2.5M lives. Its headcount grew by 4x in the past year. Quit Genius is the only such solution with 9 peer-reviewed studies and a randomized controlled trial demonstrating best-in-class outcomes. The strength of its peer-reviewed outcomes and experience working with large employers and health plans across the nation allows Quit Genius to move to this new payment model.


About Pelago

Pelago partners with enterprises as the leading virtual clinic for substance use management among their employees. We are transforming substance use support – from prevention to treatment – delivering education, management skills, and opportunities for positive change to members struggling with substance use, most commonly tobacco, alcohol or opioids. Our solution gives employers the means to offer on-demand, personalized support to workers seeking to live healthier lives. Pelago’s cognitive behavioral therapy (CBT) and medication-assisted treatment (MAT) programs deliver convenient, accessible and effective support that seamlessly integrates with health plans, pharmacy benefit managers and wellness platforms. Tens of thousands of members enroll in the Pelago program each year, and more than 3.4 million now have access to the digital clinic.

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