Press release

Ontrak Reports Dramatic Increase in Mental Health Issues With a Multiplier Effect on Healthcare Costs

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Ontrak, Inc. (NASDAQ: OTRK) (“Ontrak” or the “Company”), a leading AI-powered and telehealth enabled, virtualized outpatient healthcare treatment company, today announced that the volume of evidence now pointing to a surge in mental health conditions may still understate the severity of the mental health crisis.

A recent Milliman Research Report commissioned on behalf of The Path Forward for Mental Health and Substance Use by the Mental Health Treatment and Research Institute found that the commercial “high cost behavioral group” accounted for only 5.7% of the population but 44% of total spend. This study was based on claims data from well before the pandemic and did not include Medicaid and the ageing Medicare members who typically have even higher medical expenditure.

Time Magazine Health has just reported that three times as many Americans met criteria for a depression diagnosis during the pandemic than before it and depression symptoms across a nationally representative survey skyrocketed from 8.5% to 28% of the U.S. population. Similarly, the most recent Kaiser Family Foundation Tracking Poll reported that for the first time since KFF began tracking this question in March, a majority of adults (53%) now say that stress and worry related to the pandemic has had a negative impact on their mental health. This is up 14 percentage points since May, and up 8 percentage points since the previous high of 45% in early April.

Mr. Terren Peizer, Chairman and CEO of Ontrak, stated, “There is now a preponderance of evidence that the mental health crisis in the country has overtaken our company estimates. We had previously attributed 30 to 35% of total medical spend to the high cost group, when the reality is now alarmingly higher. Even the Milliman figure of 44% likely underestimates the magnitude of the crisis, because it is based on pre-pandemic claims data, and does not include Medicare and Medicaid populations. What continues to be true is that the vast majority of the 5.7% group are treatment and care avoidant, and have multiple behavioral health conditions and chronic diseases, and therefore very high cost. Milliman indicates that the cost savings opportunity for an integrated medical and behavioral health approach could total between $37.6B and $67.8B. This is further validation of our strategy of serving care avoidant members through continued investment in a unique portfolio of evidence-based, whole health interventions, phenotyped to each member for maximum engagement and the best clinical outcomes. These are the unique Ontrak interventions that our health plan partners are rolling out across the country to ensure that the 5.7% of the population who account for at least 44% of healthcare costs are not left behind by the healthcare system.”

About Ontrak, Inc.

Ontrak, Inc. (f/k/a Catasys, Inc.) is a leading AI and telehealth enabled, virtualized outpatient healthcare treatment company, whose mission is to help improve the health and save the lives of as many people as possible. The company’s PRE™ (Predict-Recommend-Engage) platform predicts people whose chronic disease will improve with behavior change, recommends effective care pathways that people are willing to follow, and engages people who aren’t getting the care they need. By combining predictive analytics with human engagement, Ontrak delivers improved member health and validated outcomes and savings to healthcare payers.

The company’s integrated, technology-enabled Ontrak™ solutions, a critical component of the PRE platform, are designed to treat members with behavioral conditions that cause or exacerbate chronic medical conditions such as diabetes, hypertension, coronary artery disease, COPD, and congestive heart failure, which result in high medical costs.

Ontrak has a unique ability to engage these members, who do not otherwise seek behavioral healthcare, leveraging proprietary enrollment capabilities built on deep insights into the drivers of care avoidance.

Ontrak integrates evidence-based psychosocial and medical interventions delivered either in-person or via telehealth, along with care coaching and in-market Community Care Coordinators who address the social and environmental determinants of health, including loneliness. The company’s programs improve member health and deliver validated cost savings to healthcare payers of more than 50 percent for enrolled members. Ontrak solutions are available to members of leading national and regional health plans in 30 states and in Washington, D.C.

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