Artificial intelligence technology company, Catasys, is expanding its medical platform and beyond following a financial agreement with Goldman Sachs Specialty Lending Group to secure $45 million in debt financing. The company plans to use the proceeds to close existing credit facilities and grow its technology, specifically its Catasys PRE platform, and develop new contracts and expansions.
Founded in 2003, the Los Angeles tech company uses artificial intelligence and data analytics to identify patients with behavioral conditions and catch and treat any mental illness before it gets worse or develops into chronic medical conditions like hypertension, diabetes, coronary artery disease, congestive heart failure, or COPD by linking patients to services.
The company’s OnTrak software, which is currently available in 27 states, links its expansive medical data to care coaching and community care coordinators, who can address social and environmental cause of behavioral conditions.
“Our leadership team worked closely with Goldman Sachs over the past few months and are thrilled to have the bank as a new financing provider, which may result in future funding commitments,” said Terren Peizer, chairman and CEO, Catasys, in a statement. “Given current and anticipated growth of eligible members of our outreach pool, we anticipate the proceeds from this financing will enable Catasys to achieve positive cash flow as we continue working to execute on our program and platform expansions and technological advancements in the remainder of 2019 and beyond. Given our capital-light model, we remain optimistic that our growth can be funded by access to additional debt capital, if necessary, and internally generated cash flow.”
Catasys’ corporate team recently saw some expansions as well with the appointment of Daniel Prewitt as senior vice president of sales, Michael Wain as senior vice president of member engagement, and the appointment of Robert L. Rebak, a 30-year industry vet, to its board of directors.
In August, the company reported that its Q2 revenue was up 135%, or $7.7 million, and nearly matched levels for the full year of 2018 and increased 13% from Q1. Overall, revenue increased 180% to $14.5 million in the quarter ending June 30, 2019, compared to $5.2 million during the same period in 2018.
So far, new enrollment increased 81% year over year, and the company expects revenues to reach $35 million in 2019.