Post by JHam on Aug 10, 2018 3:18:14 GMT
This is an interesting one. To summarize as briefly as I can. It's a company that has made a platform called OnTrak that works with insurance companies/health plans to cut costs of people with chronic disorders who don't seek care. And therefore cause a financial burden for these companies.
ACTC investors will recognize the name of the CEO (and Wallstreet legend), Terren Peizer
They have no competition in this field and after 14 years of building the technology they are finally launching their platform. So far 7 of the 8 biggest health insurers (like Aetna, Humana, Anthem, etc...) have partnered with CATS.
It is a $5B market (at the moment) that Peizer believes they can capture 70% of. He said two days ago at the Canaccord conference that he believes they will be bringing in hundreds of millions in billings in the next few years, with an assumption that they can eventually reach a $3.5B revenue stream.
Current market cap: $125M
Shares o/s: 15.9M (insiders own 12.9M)
Current pps: $7.88
Not quite sure on the current cash situation. They entered into a $10M loan agreement in June where they can pull money out as needed at 7.75% and 9.7% interest.
I opened a medium position yesterday at $6.99 (and it already shot up to $7.88). Earnings will be reported soon and Terren hinted at Canaccord that investors will be happy with the growth since 1Q.
Canaccord webcast:
wsw.com/webcast/canaccord30/cats/index.aspx
Good interview with Terren Peizer:
(6:31 to skip to talk about CATS)
www.youtube.com/watch?v=iSOay5XaVtQ
Overview
Catasys leads the health care industry in improving health and reducing claims costs for health plan members with behavioral health disorders that cause or exacerbate co-existing medical conditions. OnTrak™, a 52-week intensive outpatient program, treats an overlooked population: members suffering from chronic disorders such as substance use disorder, anxiety and depression who rarely seek care. These members cost health plans millions of medical dollars primarily due to preventable ambulance usage, medical ER visits and medical inpatient admissions. Despite having a behavioral health diagnosis, their behavioral health spending is relatively minor or non-existent.
Catasys uses a proprietary analytics platform and predictive modeling to identify high utilizers of medical healthcare services with costs that can be significantly reduced by addressing the underlying behavioral health disorder(s). Through proactive outreach, we engage and treat these individuals in our patient-centric program that integrates evidence-based medical interventions, psychosocial skill building and care coaching by nurses.
The end result is improved health and quality of life for the member, and a 50% reduction in claims costs to the health plan.
Catasys has contracted with leading national, regional and local health insurance companies and currently operates programs in California, Connecticut, Florida, Georgia, Illinois, Kansas, Kentucky, Louisiana, Massachusetts, Missouri, New Jersey, North Carolina, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West Virginia and Wisconsin. The company continues to expand into additional states at the request of its health plan customers.
Core Beliefs
We believe that successful outcomes require a whole-person treatment philosophy, integrated behavioral/medical care, provider coordination, member skill building, and long term reinforcement.
Experience
The Catasys team comprises doctors, nurses and business professionals with extensive experience in behavioral health and a passion for alleviating the suffering of individuals with coexisting behavioral and medical conditions. As thought leaders in health care, our staff has published books, papers and studies relating to behavioral health and predictive modeling. Catasys is known for translating proven science into practice quickly, and its proprietary methodology in understanding and engaging members who need treatment.
ACTC investors will recognize the name of the CEO (and Wallstreet legend), Terren Peizer
They have no competition in this field and after 14 years of building the technology they are finally launching their platform. So far 7 of the 8 biggest health insurers (like Aetna, Humana, Anthem, etc...) have partnered with CATS.
It is a $5B market (at the moment) that Peizer believes they can capture 70% of. He said two days ago at the Canaccord conference that he believes they will be bringing in hundreds of millions in billings in the next few years, with an assumption that they can eventually reach a $3.5B revenue stream.
Current market cap: $125M
Shares o/s: 15.9M (insiders own 12.9M)
Current pps: $7.88
Not quite sure on the current cash situation. They entered into a $10M loan agreement in June where they can pull money out as needed at 7.75% and 9.7% interest.
I opened a medium position yesterday at $6.99 (and it already shot up to $7.88). Earnings will be reported soon and Terren hinted at Canaccord that investors will be happy with the growth since 1Q.
Canaccord webcast:
wsw.com/webcast/canaccord30/cats/index.aspx
Good interview with Terren Peizer:
(6:31 to skip to talk about CATS)
www.youtube.com/watch?v=iSOay5XaVtQ
Overview
Catasys leads the health care industry in improving health and reducing claims costs for health plan members with behavioral health disorders that cause or exacerbate co-existing medical conditions. OnTrak™, a 52-week intensive outpatient program, treats an overlooked population: members suffering from chronic disorders such as substance use disorder, anxiety and depression who rarely seek care. These members cost health plans millions of medical dollars primarily due to preventable ambulance usage, medical ER visits and medical inpatient admissions. Despite having a behavioral health diagnosis, their behavioral health spending is relatively minor or non-existent.
Catasys uses a proprietary analytics platform and predictive modeling to identify high utilizers of medical healthcare services with costs that can be significantly reduced by addressing the underlying behavioral health disorder(s). Through proactive outreach, we engage and treat these individuals in our patient-centric program that integrates evidence-based medical interventions, psychosocial skill building and care coaching by nurses.
The end result is improved health and quality of life for the member, and a 50% reduction in claims costs to the health plan.
Catasys has contracted with leading national, regional and local health insurance companies and currently operates programs in California, Connecticut, Florida, Georgia, Illinois, Kansas, Kentucky, Louisiana, Massachusetts, Missouri, New Jersey, North Carolina, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West Virginia and Wisconsin. The company continues to expand into additional states at the request of its health plan customers.
Core Beliefs
We believe that successful outcomes require a whole-person treatment philosophy, integrated behavioral/medical care, provider coordination, member skill building, and long term reinforcement.
Experience
The Catasys team comprises doctors, nurses and business professionals with extensive experience in behavioral health and a passion for alleviating the suffering of individuals with coexisting behavioral and medical conditions. As thought leaders in health care, our staff has published books, papers and studies relating to behavioral health and predictive modeling. Catasys is known for translating proven science into practice quickly, and its proprietary methodology in understanding and engaging members who need treatment.
