Monday, 20 May 2024
Trending

Investing

Ontrak Health reports growth and new partnerships in Q1 2024 By Investing.com

Instacart cuts internal valuation for the third time to $13 billion - The Information


Ontrak Health (OTRK) has announced its financial results for the first quarter of 2024, highlighting a year-over-year revenue increase of 6% to $2.7 million and a new partnership with Community Care Plan.

The company’s WholeHealth+ program is set to expand as part of the Statewide Medicaid Managed Care re-procurement, with Ontrak commencing outreach to new eligible members in the next 30 to 60 days.

Despite a slight decrease in gross margin to 63.6%, Ontrak remains focused on its growth strategy, including finalizing deals with two major healthcare plans and launching services for Sentara Medicaid members.

Key Takeaways

  • Ontrak Health’s revenue grew to $2.7 million, a 6% increase from the previous year.
  • The company has a new partnership with Community Care Plan in South Florida, enhancing its targeted outreach pool.
  • Ontrak’s WholeHealth+ program is praised for its effectiveness in patient experience and member retention.
  • A new Medicaid amendment will offer WholeHealth+ to Sentara Medicaid members, with details pending.
  • Q1 saw an increase in average enrolled members by 15%, despite a net enrollment decrease of 237 members.
  • The company anticipates Q2 2024 revenue to be between $2.4 million and $2.8 million.
  • Cash flow from operations was negative $3.3 million, ending the quarter with $6.4 million in cash.
  • Ontrak is in advanced talks with two prominent healthcare plans, expecting to finalize deals soon.
  • The exercise of remaining warrants could inject an additional $15.9 million in cash.

Company Outlook

  • Expected Q2 2024 revenue between $2.4 million and $2.8 million.
  • Launching the Community Care Plan in one county, with potential for significant growth.
  • Finalizing deals with two major healthcare plans, expecting customer feedback within 30 to 60 days.
  • Majority of disenrollment fallout from Medicaid losses is believed to be resolved, despite some states extending timelines.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or
remove ads
.

Bearish Highlights

  • Slight decrease in gross margin to 63.6% in Q1.
  • Net enrollment decrease of 237 members in Q1.
  • Negative cash flow from operations standing at $3.3 million.

Bullish Highlights

  • New subcontractor approval with Community Care Plan as part of Medicaid Managed Care re-procurement.
  • WholeHealth+ program’s success in delivering superior patient experiences and improving health outcomes.
  • Ongoing expansion opportunities with other health plans.

Misses

  • Gross margin decreased slightly compared to previous…

Click Here to Read the Full Original Article at All News…