-Lowfloat (float less than 3mln shares)
-Huge potential application for insurance market.
-Recent Nasdaq Listing(Not much press coverage)
-Conference to be held at the
Mandarin Oriental Hotel in New York City on Tuesday, May 2, 2017 at
10:00 am ET by Terren Peizer, Chairman of the Board and Chief Executive Officer.
Catasys, Inc. (CATS) provides data analytics based specialized
behavioral health management and integrated treatment services to
health plans through our On Trak solution. Our On Trak
solution is designed to improve member health and at the
same time lower costs to the insurer for underserved populations
where behavioral health conditions are causing or exacerbating
co-existing medical conditions. The program utilizes proprietary
analytics, member engagement and patient centric treatment that
integrates evidence-based medical and psychosocial interventions
along with care coaching in a 52-week outpatient program. Our initial
focus was members with substance use disorders, but we have expanded
our solution to assist members with anxiety and depression. We
currently operate our On Trak solutions in Florida, Georgia,
Illinois, Kansas, Kentucky, Louisiana, Massachusetts, Missouri, New
Jersey, North Carolina, Oklahoma, Pennsylvania, South Carolina,
Tennessee, Texas, Virginia, West Virginia and Wisconsin. We
provide services to commercial (employer funded), managed Medicare
Advantage, and managed Medicaid and duel eligible (Medicare and
Medicaid) populations.
Business
strategy is to provide a quality integrated medical and behavioral
program to help health plans and other organizations treat and manage
health plan members whose behavioral health conditions are
exacerbating co-existing medical conditions resulting in increased
in-patient medical costs. Our initial focus was members with
substance use disorder, and we have expanded our solution into
anxiety disorders and depression.
Key
elements of company business
strategy include :
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Demonstrating
the potential for improved clinical outcomes and reduced cost
associated with using our On Trak solution with key managed
care and other third-party payors;
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third-party payors on the disproportionately high cost of their
substance dependent population;
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Providing
our On Trak solution to third-party payors for
reimbursement on a case rate, fee for service, or monthly fee
basis;
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Generating
outcomes data from our On Trak solution to demonstrate cost
reductions and utilization of this outcomes data to facilitate
broader adoption.
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As
an early entrant into offering integrated medical and behavioral
programs for substance dependence, we believe we will be well
positioned to address increasing market demand. We believe our On
Trak solution will help fill the gap that exists today: a lack
of programs that focus on smaller populations with disproportionately
higher costs driven by behavioral health conditions that improve
patient care while controlling overall treatment costs.
Company
provide data analytics based specialized behavioral health management
and integrated treatment services to health plans through our On Trak
solution. Our
On Trak
solution
is designed to improve member health and at the same time lower costs
to the insurer for underserved populations where behavioral health
conditions are causing or exacerbating co-existing medical
conditions. The program utilizes proprietary analytics, member
engagement and patient centric treatment that integrates
evidence-based medical and psychosocial interventions along with care
coaching in a 52-week outpatient program. Our initial focus was
members with substance use disorders, but we have expanded our
solution to assist members with anxiety and depression. We currently
operate our On Trak
solutions in
Florida, Georgia, Illinois, Kansas, Kentucky, Louisiana,
Massachusetts, Missouri, New Jersey, North Carolina, Oklahoma,
Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West
Virginia and Wisconsin. We provide services to commercial
(employer funded), managed Medicare Advantage, and managed Medicaid
and duel eligible (Medicare and Medicaid) populations.
Our
Market
The
true impact of behavioral health is often under-identified by
organizations that provide healthcare benefits. The reality is that
individuals with behavioral health conditions:
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are
prevalent in any organization;
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cost
health plans and employers a disproportionate amount of money;
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have
higher rates of absenteeism and lower rates of productivity; and
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have
co-morbid medical conditions which incur increased costs for the
treatment of these conditions compared to a non-substance
dependent population.
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When
considering behavioral health-related costs, many organizations have
historically only looked at direct treatment costs–usually
behavioral claims. The reality is that individuals with
behavioral health conditions generally have overall poorer health and
lower compliance, which leads to more expensive treatment for
related, and even seemingly unrelated, co-occurring medical
conditions. In fact, for the members we seek to engage our solutions,
costs associated with behavioral health treatment are a small portion
of their overall healthcare claims.
According
to the U.S. Census Bureau in 2014, there were over 283 million lives
in the U.S. covered by various private managed care programs,
including Preferred Provider Organizations (PPOs), Health Maintenance
Organizations (HMOs), self-insured employers and managed
Medicare/Medicaid programs. Each year, based on our
analysis, approximately 1.9% of commercial plan members will have a
substance dependence diagnosis, and that figure may be lesser or
greater for specific payors depending on the health plan demographics
and location. A smaller, high-cost subset of this
population drives the majority of the claims costs for the overall
substance dependent population. For commercial members
with substance dependence and a total annual claims cost of at least
$7,500, the average annual per member claims cost is $30,000,
compared with an average of $3,250 for a commercial non-substance
dependent member, according to our research.
Our
customers provide health insurance to individuals or groups
(Contracted Membership). We contract with our customers to provide
our On Trak solution to the customers’ Contracted Membership
generally in specific lines of business (e.g., commercial, Medicare,
Medicaid, etc.) and/or specific states or other geographical areas
and for specific indications, such as substance use disorders and,
more recently, anxiety and depression. We refer to the Contracted
Membership to whom we are providing the On Trak solution as
Covered Lives. Generally, we receive data relating to the Covered
Lives on a regular basis from our customers. We use that data to
identify members who meet our contractual eligibility requirements
(Eligible Members) and we attempt to engage and enroll those members
in our On Trak solution. Our Eligible Members can fluctuate
significantly from month to month due to fluctuations in our
customers’ Contracted Membership and changes in eligibility due to
changes in claims or eligibility data provided to us by our
customers. Based on our analysis of the data provided to us by our
customers, approximately 0.45% of the adult Contracted Membership in
a commercial line of business is anticipated to be eligible for our
On Trak solution. Based on our analysis, Medicare and Medicaid
lines of business average approximately 2.5 times the number of
Eligible Members for our On Trak solution as the same number
of Covered Lives in a commercial line of business. Further, our
preliminary data analysis shows that adding anxiety and depression
indications to our Covered Lives is anticipated to increase our pool
of Eligible Members substantially. Based on the latest data provided
by one of our customers that has contracted for us to provide On Trak
for anxiety, adding the anxiety and depression indications are
anticipated to increase the number of Eligible Members by
approximately four times over substance use disorders alone. There
are fluctuations in the number of Eligible Members across customers
and geographies. Our analysis to date is based on limited data, and
in some cases like anxiety and depression, very limited data. There
can be no assurance that the data we have analyzed to date will be
predictive of the future or that the portion of Covered Lives that
are eligible for our programs will not change in the future. In
addition, the percentage of Eligible Members in any lines of Covered
Lives may fluctuate substantially from period to period.
Catasys,
Inc. ($CATS) Solution: On Trak
Our
On Trak solution combines evidence-based medical and
psychosocial treatments with elements of population health management
and ongoing member support to help health plans treat members with
substance dependence, anxiety and depression and to improve member
health and lower the overall health plan costs of these members. We
believe the benefits of our On Trak solution include improved
clinical outcomes and decreased costs for the payor, and improved
quality of life and productivity for the member.
Although
the healthcare services industry is competitive, we believe On Trak
is the only solution of its kind. The On Trak solution was
developed by behavioral health experts with years of clinical
experience. This experience has helped to form key areas of expertise
that we believe sets our solution apart from other solutions,
including member engagement, working directly with the member
treatment team and a more fully integrated treatment offering.
Our
On Trak solution includes the following components:
identification of impactable members, member engagement,
enrollment/referral, provider network, outpatient medical treatment,
outpatient psychosocial treatment, care coaching, monitoring and
reporting, and our proprietary web-based clinical information
platform (eOn Trak ).
We
assist health plans to identify those members who incur significant
costs and may be appropriate for enrollment into On Trak . We
then engage and enroll targeted members into our program through
direct mailings and telephonic outreach, and referral through health
plan sources. After enrollment, our contracted network of providers
provide treatments utilizing integrated medical and psychosocial
treatment modalities, including our proprietary On Trak therapy
modules for anxiety, depression and substance use disorders to help
members develop improved coping skills and a recovery support
network. Throughout the treatment process, our care coaches work
directly with members to keep them engaged in treatment by
proactively supporting members to enhance motivation, minimize lapses
and enable lifestyle modifications consistent with the recovery
goals. Periodically, we will provide outcomes reporting on clinical
and financial metrics to our customers to demonstrate the extent of
the program’s value.
Clinical
and financial outcomes from the On Trak solution have been
promising with On Trak enrolled members achieving an average
gross cost reduction of more than 50% for the year after enrollment
compared to the 12 months prior to enrollment. In addition, to date,
approximately 80% of members who have remained eligible have been
retained in the program.
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