Company Overview: Ontrak, Inc.

Core Business

• Industry: Behavioral Healthcare (Value-based model)
• Primary Focus: Identifies and engages individuals with unmet behavioral health needs, particularly those impacting chronic medical conditions.
• Technology: Proprietary Advanced Engagement System utilizing AI, predictive modeling, and comprehensive healthcare data to detect connections between behavioral health issues and physical conditions.
• Approach: Combines data analytics with human engagement (care coaches, telehealth, in-person interventions) to improve health outcomes and reduce healthcare costs.

Service Offerings

• Wholehealth+ Suite:
  1. Ontrak Identify: Uses AI to predict and find members with behavioral health conditions (e.g., anxiety, depression, substance use) that are often undiagnosed but impact chronic health conditions.
  2. Ontrak Outreach: Member enrollment specialists perform targeted multichannel outreach, achieving approximately 58% enrollment success rate.
  3. Ontrak Engage: Evidence-based coaching program that includes behavioral change techniques and real-time digital insights to support members across all acuity levels.
  4. Ontrak Access: Develops and monitors behavioral health provider networks with real-time referrals and outcomes.
  5. Ontrak Quality: Focused on improving quality scores (HEDIS, Star Ratings) through AI-driven interventions, closing care gaps, and addressing behavioral health metrics.

Market and Impact

• Targets complex populations with behavioral and chronic medical issues, such as diabetes, hypertension, COPD, and heart failure.
• Focuses on segments with high cost and needs for engagement; many members are traditionally unreachable by conventional providers.
• Significant emphasis on social determinants of health and personalized care.

Customer and Revenue Data

• Number of Employees (as of December 31, 2024): 112 total (104 full-time, 8 part-time)
• Key Customers:
  • Major payors including large health plans and regional Medicaid plans.
  • Contracted with multiple health plans, including Medicaid and Medicare Advantage programs.
  • Significant revenue dependence on a few large customers:
    • 2024 Revenue: $10.8 million (a decline from $12.7 million in 2023, primarily due to member disenrollments)
    • In 2024, 93% of revenue was attributable to three customers.
    • In 2023, 96% of revenue was attributable to three customers.
    • The largest customer announced it would not continue services after December 2024, impacting revenues.
• Revenue:
  • 2024: $10.8 million
  • 2023: $12.7 million
• Net Loss:
  • 2024: $25.5 million
  • 2023: $27.9 million
• Cash and Working Capital (as of December 31, 2024):
  • Total Cash: $5.7 million
  • Working Capital: $0.8 million

Recent Business Developments

• Effected a 1-for-15 reverse stock split (effective September 2024).
• Expanded programs in early 2024, increasing eligible members (callable outreach pool):
  • WholeHealth+: 4,908 members
  • Ontrak Engage: 20,648 members
• Signed new customer agreements with Medicaid, regional health plans, and large healthcare systems.
• Secured $5.0 million in Keep Well Notes in August 2024; purchased by Acuitas Capital.

Summary

Ontrak is a behavioral healthcare company providing AI-supported, data-driven programs focused on complex, high-cost populations with unmet behavioral health needs that exacerbate chronic conditions. It leverages proprietary technology and human coaching to improve clinical outcomes and generate cost savings for health payors. The company has around 112 employees and derives most of its revenue from a small number of large payor contracts, with ongoing challenges related to customer retention, capital needs, and market acceptance.