Catasys Inc. (OTCMKTS:CATS), a health management services provider, rolled out a press release stating that it has started enrollments of members with anxiety disorders under its OnTrak Program. The enrollments are tied up with a national health care provider situated in Kansas. The announcement comes on the heels of its earlier statement from March 2015, where it had revealed about the agreement of adding anxiety ridden members to OnTrak program.
The new initiative
Following which, Catasys Inc. (OTCMKTS:CATS) entered into a multi-year agreement with Health Alliance Medical Plans (HAMP) in April. The company’s initiative helped it to extend its onTrak Program to additional 100,000 Commercially Equivalent Lives (CELs) in Illinois. During the ongoing year, Catasys Inc. (OTCMKTS:CATS) has successfully added 2.3 million CELs as a result of its initiatives. The company firmly believes that by doing this it will boost its potential to attract more enrollments and thereby, add to its revenues.
Sharing the details of the market, Catasys Inc. (OTCMKTS:CATS) noted that for every 1 million members covered under a health plan, nearly $160 million are spent in claims. Hence, looking at the 204 million lives that are currently covered under managed care, Caterpillar Inc. (NYSE:CAT) sees the market opportunity worth $2 billion. Further, by the inclusion of anxiety and depression to the program, the company anticipates the market to increase by another $6 billion.
The company’s President and COO, Rick Anderson said that they were able to start enrollment of members suffering from depression and anxiety within a period of two months. He highlighted that the analysis of historical data from their programs showed that enrolled members under OnTrak program paid fewer visits to ER and reported controlled inpatient hospitalization as well as lower health care costs. Anderson is positive that the company will attain similar outcomes going forward.
The stock of Catasys Inc. (OTCMKTS:CATS) traded marginally down by 1.49% to close at $1.98 while the average share trade volume for the day was recorded at 4,000 shares.