Catasys Announces Enrollment of Members with Anxiety Disorder in its OnTrak™ Program in Kansas
Company Further Expands its Commercial Equivalent Lives to 2.3 million
LOS ANGELES, May 12, 2015 /PRNewswire/ -- Catasys, Inc. (OTCQB: CATS), provider of proprietary health management services to health insurers and employers, announced today that it has begun enrolling members with anxiety disorder in its OnTrak Program with a leading national health care provider in Kansas.
In March 2015, Catasys announced the agreement to add members with anxiety to its existing OnTrak program in Kansas, substantially increasing the number of eligible lives in Kansas' population. Last month, the Company announced a multi-year agreement with Health Alliance Medical Plans (HAMP) to offer its OnTrak Program to eligible HAMP members in Illinois, thus adding approximately 100,000 Commercially Equivalent Lives (CELs) covered under its OnTrak Program. In the current year, Catasys has increased its CELs under contract by 28% to approximate 2.3 million covered CELs. CELs are a key operating metric, which the Company believes reflect the Company's potential growth as increasing CELs represent increasing potential future enrollment and revenue streams.
There are approximately 204 million lives covered under managed care in the United States. For every 1 million members in a health plan in the United States, approximately $160 million in claims are incurred by commercial health plan members diagnosed with substance dependence, translating to an initial $2 billion market opportunity for Catasys. Adding anxiety and depression conditions to the OnTrak programs is anticipated to increase the potential addressable market to more than $6 billion.
Rick Anderson, President and COO said, "In less than two months we were able to successfully commence enrollment of members suffering from anxiety disorders. Outcomes from our programs assisting members with substance use disorders to date show that OnTrak enrolled members have fewer ER visits and inpatient hospitalizations and lower health care costs. We believe expanding our program to members with anxiety disorders will be beneficial for these patients and we hope to demonstrate similar outcomes. Positive program outcomes are a key factor driving increases in CELs under contract."
The OnTrak program is designed to improve patient health and also lower the costs to the insurer for underserved populations where behavioral health conditions are exacerbating co-existing medical conditions. OnTrak has demonstrated effectiveness with a 50% reduction in health plan health care costs of members enrolled in the program as well as decreases in hospital days, ambulance usage, emergency room visits, and more through identification, engagement and treatment. Catasys currently operates programs or is contracted in Florida, Illinois, Kansas, Kentucky, Louisiana, Massachusetts, New Jersey, Oklahoma, West Virginia, and Wisconsin.
About Catasys, Inc.
Catasys, Inc. provides specialized healthcare management services to health plans and employers through its OnTrak program. Catasys' OnTrak program—contracted with a growing number of health insurers—is designed to improve member health and, at the same time, lower costs to the insurer for underserved populations where behavioral health conditions cause or exacerbate co-existing medical conditions. The program utilizes analytics to engage members in need of care and patient-centric treatment that integrates evidence-based medical and psychosocial interventions along with care coaching in a 52-week outpatient program. OnTrak is currently improving member health and, at the same time, is demonstrating reduced inpatient and emergency room utilization, driving a more than 50 percent reduction in total health insurers' costs for enrolled members. Catasys currently operates OnTrak in Florida, Kansas, Kentucky, Louisiana, Massachusetts, New Jersey, Oklahoma, West Virginia and Wisconsin and has recently contracted to expand to Illinois. For further information, please visit catasys.com.
Forward-Looking Statements
Except for statements of historical fact, the matters discussed in this press release are forward-looking and made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond our control that may cause actual results to differ materially from stated expectations. These risk factors include, among others, changes in regulations or issuance of new regulations or interpretations, limited operating history, our inability to execute our business plan, increase our revenue and achieve profitability, lower than anticipated eligible members under our contracts, our inability to recognize revenue, lack of outcomes and statistically significant formal research studies, difficulty enrolling new and maintain existing members in our programs, the risk that treatment programs might not be effective, difficulty in developing, exploiting and protecting proprietary technologies, intense competition and substantial regulation in the health care industry, the risks associated with the adequacy of our existing cash resources and our ability to continue as a going concern, our ability to raise additional capital when needed and our liquidity. You are urged to consider statements that include the words "may," "will," "would," "could," "should," "believes," "estimates," "projects," "potential," "expects," "plan," "anticipates," "intends," "continues," "forecast," "designed," "goal," or the negative of those words other comparable words to be uncertain and forward-looking. For a further list and description of the risks and uncertainties we face, please refer to our most recent Securities and Exchange Commission filings which are available on its website at http://www.sec.gov. Such forward-looking statements are current only as of the date they are made, and we assume no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Catasys, Inc.
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