Members of multiple national health plans in treatment group

Evidence that Ontrak reduces the avoidable utilization that contributes to 44% of healthcare costs

Ontrak, Inc (NASDAQ: OTRK) (“Ontrak” or the “Company”), a leading AI-powered and telehealth-enabled, virtualized healthcare company, today announced that its new study, “Treatment Effect of the Ontrak Program,” finds that the Ontrak program produces a statistically significant reduction in hospitalizations and inpatient stays, while increasing utilization of preventative behavioral healthcare office visits among individuals who have untreated behavioral health needs and medical comorbidities. The cost savings for members who completed the 12-month program were notable at $486 per member per month and statistically significant at (p<0.001).

The research team for the Treatment Effect Foundational Retrospective Observational Study is led by Ontrak’s Dr. Hilary Placzek whose work focuses on measuring the impact of social and behavioral health interventions at scale. Dr. Placzek has a PhD in Clinical and Population Health Research from the University of Massachusetts Medical School, and an MPH in Global Health/Epidemiology from Boston University School of Public Health. Dr. Placzek’s methodological training includes Harvard Medical School, Massachusetts Department of Public Health, University of Massachusetts Medical School, and Boston University School of Public Health. Her work has been published in journals such as PLoS Medicine, Journal of Managed Care Pharmacy, Vaccine, Journal of General Internal Medicine, and American Journal of Public Health.

Advisors to Dr Placzek’s team include Robert M Kaplan, faculty member at the Stanford School of Medicine Clinical Excellence Research Center (CERC) and also a Distinguished Research Professor of Health Services and Medicine at UCLA, and Jill Glassman PhD, Biostatistician and Senior Center Manager of Quantitative Analysis at the Stanford School of Medicine Clinical Excellence Research Center (CERC).

The research team created a simulated control group of 900 individuals to compare with those enrolled in the Ontrak program of the same number. The control group were members who were eligible to participate, but did not enroll in the program. The treatment group were those that enrolled and completed the Ontrak program. The study was conducted over 36 months, and data such as utilization of emergency departments and hospitalizations was analyzed for 12 months prior to enrollment in the program, and again for 24 months post-enrollment, to measure outcomes and determine whether the behavioral changes were durable over the long-term as a result of Ontrak’s approach.

The study shows a statistically significant reduction of 64% in inpatient hospitalizations within the treatment group. In addition, individuals enrolled in the Ontrak program sought out more office visits for preventive care and behavioral health services. The savings for members who completed the 12-month program were notable at $486 per member per month and statistically discernible at (p<0.001), which equates to a savings of nearly $12,000 per member over two years, post enrollment. The cost for all-cause health office visits rose $110 per member per month (p<0.001), a positive change indicating uptake of productive, preventive care and fewer costly and avoidable inpatient hospitalizations.

“There are tremendous gaps in care for individuals suffering with behavioral health conditions such as anxiety, depression and substance use disorders,” stated Jonathan Mayhew, Ontrak CEO. “A September 2020 study by Milliman highlighted the need to engage the high-cost patients with behavioral health conditions who represent just 5.7% of the population and yet account for 44% of healthcare costs. We are proud of the results of the new Ontrak Treatment Effect study, which provide strong evidence that we can reduce the avoidable utilization that contributes to 44% of healthcare costs. This means statistically significant savings for payers and lasting changes in behavioral health outcomes for those who graduate from the 52-week Ontrak program. We look forward to continuing our research to ensure that as many individuals as possible can benefit from continuous improvements to our AI-powered and care coach supported program of personalized, whole health care.”

Learn more about the Treatment Effect study: https://info.ontrak-inc.com/webinar-treatment-effect-of-the-ontrak-program

About Ontrak, Inc.

Ontrak, Inc. (f/k/a Catasys, Inc.) is a leading AI and telehealth enabled, virtualized healthcare 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 are not 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™ programs, a critical component of the PRE platform, are designed to provide healthcare solutions to 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 between 40 and 50 percent for enrolled members.

Learn more at www.ontrak-inc.com

Cautionary Note Regarding Forward-Looking Statements

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, which 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, our inability to execute our business plan, increase our revenue and achieve profitability, lower than anticipated eligible members under our contracts, our inability to recognize revenue, lack of outcomes and statistically significant formal research studies, difficulty enrolling new members and maintaining existing members in our programs, the risk that treatment programs might not be effective, difficulty in developing, exploiting and protecting proprietary technologies, intense competition and substantial regulation in the health care industry, the risks associated with the adequacy of our existing cash resources and our ability to continue as a going concern, our ability to raise additional capital when needed and our liquidity. 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 or other comparable words to be uncertain and forward-looking. Forward looking statements may include statements regarding our proprietary IP and technological innovation allowing us to identify, engage, and create lasting behavior change in the lives of those with unaddressed behavioral health conditions and chronic disease. 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, except as required by law.

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