Crystal Research Associates has released a 56-page Executive Informational Overview (EIO) on healthcare service and data analytics company, California-based Catasys, Inc. The EIO details Catasys' business model, technology development, customers and end users, treatment approach, opportunities in the behavioral healthcare market, competition, and more. The report is available for download below.
Catasys provides big data–based analytics and predictive modeling–driven health management services for health plans. These services aim to improve member health while simultaneously lowering insurer costs for underserved populations. Catasys’ OnTrak™ integrated solutions serve individuals who have behavioral health disorders that exacerbate coexisting medical conditions, resulting in higher hospital admissions and emergency room (ER) visits. The Company has developed analytics for identifying which individuals on an insurance plan are “high utilizers” with impactable costs due to having a substance dependency or an anxiety disorder. Catasys targets these patients with its proprietary direct outreach capability to enroll them in the OnTrak™ patient-centric treatment program. OnTrak™ integrates evidence-based medical and psychosocial interventions in a 52-week outpatient program that has shown a 50%+ reduction in total costs for health insurers’ enrolled members—stemming from decreases in hospital days, ambulance usage, and ER visits. The Company has entered into contracts with several insurance providers for OnTrak™, which is now available in 10 states, including through Aetna/Coventry, Humana, Centene, Fallon Health, Health Alliance Medical Plans, and Reliant Medical Group. Collectively, this entails approximately 2.3 million Commercially Equivalent Lives (CELs). Catasys’ pipeline includes 10 million additional CELs, with 4 million in advanced discussions. CELs are a metric of growth potential, as increasing CELs may represent increasing future enrollment.
Catasys operates under the premise that substance dependence is a chronic disease, where successful patient outcomes require provider coordination, a whole-person-health treatment philosophy, member skill building, and long-term reinforcement. The Company employs a standardized, evidence-based, integrated treatment program that enables consistent quality of care for members in an outpatient environment, supported by their own Care Coach.
OnTrak™ may help fill the gap that exists as underserved populations with behavioral health conditions do not seek treatment. Moreover, Catasys is able to provide health insurers with data measuring cost reductions and uses this data to help increase adoption of OnTrak™.
A normal covered life averagely costs a health plan $3,250/year while a high-utilizer, substance-dependent life costs $27,500. If insurers pay Catasys, for example, $8,500 per member who enrolls in OnTrak™, and OnTrak™ generates a 50% cost savings, there is a potential savings to insurers in the first year of ~$5,250 per enrolled member. The cost savings is expected to continue after the first year.
Catasys’ senior management team has over 50 years of experience in substance dependence and 100 years of healthcare experience, specifically in engaging, treating, and empowering members with coexisting medical and behavioral conditions to modify behavior.
Enrollment in OnTrak™ increased 102% in Q2 2015 versus Q1 2015, and Catasys’ Q2 2015 revenue was up 51% year-over-year. As of August 13, 2015, Catasys reported ~$451,000 cash on hand.