LOS ANGELES, CALIFORNIA — March 26, 2012 — Catasys, Inc. (CATS)
announced today that members enrolled in its OnTrak program are showing improvements in member health and initial medical cost reductions of more than 50%.
Health plan members enrolled in Catasys’ OnTrak program to date are showing substantial reductions in substance use and cravings, as well as strong improvements in depression, anxiety and stress levels. Cost reductions were primarily driven through a 58% reduction in inpatient admissions and a 52% reduction in emergency room visits as compared to the base period prior to enrollment. Interestingly, while pharmacy costs were flat, the number of prescriptions nearly doubled as patients optimized their medication mix, improved compliance and proactively addressed comorbid conditions. These results are consistent with prior matched pair control testing which showed similar declines in cost for treated patients and an increase in costs for the control group.
The vast majority of members are not only showing health improvements combined with cost reductions, they are remaining with the program. Strong program retention of 88% is being driven by intensive, high-touch interactions with the Catasys Care Coaches supporting and reinforcing recovery skill building and better whole health management.
“We are pleased with the progress of our OnTrak members,” said Rick Anderson, Catasys President and COO. “These results demonstrate that addressing this often overlooked and underserved population through the OnTrak program can positively impact member health and can translate into millions of medical dollar savings for health plans. The high retention rates indicate a high level of member satisfaction with the program.”
Catasys, Inc. provides specialized health management services to health plans, employers and unions through a network of licensed and company managed health care providers. The Catasys substance dependence program was designed to address substance dependence as a chronic disease. The program seeks to lower costs and improve member health through the delivery of integrated medical and psychosocial interventions in combination with long term care coaching, including a proprietary treatment program for alcoholism and stimulant dependence. For further information, please visit www.catasyshealth.com.
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, lack of outcomes and statistically significant formal research studies, difficulty enrolling members in our programs, the risk that treatment programs might not be effective, difficulty in developing, exploiting and protecting proprietary technologies and intense competition and substantial regulation in the health care industry. 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.
Terri MacInnis, Director of Investor Relations
Bibicoff + MacInnis, Inc.