Q4 2023 Ontrak Inc Earnings Call
Okay.
Operator: Thank you for standing by, and welcome to Ontrak Health's fourth quarter earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. To remove yourself from the queue, you may press star 11 again. I would now like to hand the call over to Ryan Halsted, Investor Relations.
Speaker Change: Thank you for standing by and welcome to on track Health's fourth quarter and year end 2023 earnings conference call. At this time all participants are in a listen only mode. After the speech.
Speaker Change: Your presentation, there will be a question and answer session to ask a question. During the session you will need to press star one one on your telephone to remove yourself from the queue. You May Press Star one won that game I would now like to hand, the call over to Ryan Halsted Investor Relations. Please.
Ryan Halsted: Thank you, operator. And thank you all for participating in today's call. Joining me today are Brandon LaVerne, Chief Executive Officer and Chief Operating Officer, Mary Lou Osborne, President and Chief Commercial Officer, and James Park, Chief Financial Officer. Earlier today, Ontrak released financial results for the quarter ending December 31, 2020; a copy of the press releases is available on the company's website. Before we begin, I would like to make the following remarks concerning forward-looking statements.
Ryan Halsted: Thank you operator, and thank you all for participating in today's call. Joining me today are Brandon Laverne, Chief Executive Officer, and Chief Operating Officer, Mary Lou Osborn, President and Chief Commercial Officer, and James Clark Chief Financial Officer.
Ryan Halsted: Earlier today on track released financial results for the quarter ending December 31, 2020, it's great a copy of the press release is available on the company's website before we begin I would like to make the following remarks concerning forward looking statements. All statements in this conference call other than historical facts are forward looking statements.
Ryan Halsted: All statements in this conference call, other than historical facts, are forward-looking statements. The words anticipate, believes, estimate, expects, intends, guidance, confidence, targets, projects, and some other expressions typically are used to identify forward-looking statements. These forward-looking statements are not guarantees of future performance but may involve and are subject to certain risks and uncertainties. Other factors that may affect Ontrak's business, financial condition, and other operating results include but are not limited to the risk factors described in the risk factors section of the Form 10-K and Form 10-Q as filed with the SEC.
Ryan Halsted: Words, anticipates believes estimates expects intend guidance confidence target projects and some other expressions typically are used to identify forward looking statements. These forward looking statements are not guarantees.
Ryan Halsted: Future performance, but may involve and are subject to certain risks and uncertainties. Other factors that may affect contracts business financial condition and other operating results, which include but are not limited to the risk factors described in the risk factors section of the Form 10-K and Form 10-Q as filed with the SEC.
Ryan Halsted: Therefore, actual outcomes and results may differ materially from those expressed or implied by these forward looking statements on track expressed expressly disclaims any intent or obligation to update. These forward looking statements with that I'd like to turn the call over to Brandon.
Ryan Halsted: Therefore, actual outcomes and results may differ materially from those expressed or implied by these forward-looking statements. Ontrak expressly disclaims any intent or obligation to update these forward-looking statements.
Brandon H. LaVerne: Thanks, Ryan. We're excited to provide updates on the momentum in our pipeline and how Ontrak's continued innovation with the Advanced Engagement System is addressing the needs of our customers and building demand with prospective customers. Mary Lou will go into details with respect to prospects shortly. We also recognize our Medicare Advantage health plan customers are facing a challenging macro environment at the moment, which represents opportunities for Ontrak and our value proposition to help our health plan partners better serve their members in a cost-efficient manner. But first, allow me to cover the highlights from the recent quarter.
Brandon H. LaVerne: Thank you Brian.
Brandon H. LaVerne: We're excited to provide updates on the momentum in our pipeline and how <unk> continued innovation with the advanced engagements system is addressing the needs of our customers and building demand with perspective customers Mary Lou will go into details with respect to prospects shortly.
Brandon H. LaVerne: We also recognize our Medicare advantage health plan customers are facing a challenging macro environment at the moment, which represent opportunities for on track and our value proposition to help our health plan partners better serve their members in a cost efficient manner.
Mary Louise Elizabeth Osborne: First allow me to cover highlights from the recent quarter.
Mary Louise Elizabeth Osborne: Aside from new business development opportunities, but Mary Lou will discuss we focus this quarter on continued innovation and technology focus as we continue to develop our AI infused technology, we are able to offer increased efficiencies and higher ROI to our customers and pipeline, while maintaining our patient centered focus.
Brandon H. LaVerne: Aside from new business development opportunities that Mary Lou will discuss, we focus this quarter on continued innovation and technology. As we continue to develop our AI-infused technology, we are able to offer increased efficiencies and higher ROI to our customers and pipeline while maintaining our patient-centered focus. We recently introduced Ontrak's Advanced Engagement System to maximize more efficient and effective engagement by integrating AI throughout the member experience. The Ontrak Advanced Engagement System enables member engagement at greater scale and with greater efficiency than ever before.
We recently introduced <unk> advanced engagements system to maximize more efficient and effective engagement by integrating AI throughout the member experience.
Mary Louise Elizabeth Osborne: The entre advanced engagements system enables member engagement at greater scale and with greater efficiency than ever before.
Brandon H. LaVerne: We have achieved a member outreach success rate of 54% across all lines of business, which is more than double what we believe is the industry standard. The Advanced Engagement System is made up of multiple components, starting with a risk-based analytics engine, which uses AI algorithms to identify members and prioritize outreach based on factors like risk, readiness, acuity, claims, prescriptions, and enrollment history. Our engine can find hard-to-reach, high-risk members, for example, members with a high predicted probability of substance use disorder or depression but no associated diagnosis in existing health records.
Mary Louise Elizabeth Osborne: We have achieved a member outreach success rate of 54% and across all lines of business, which is more than double what we believe is the industry standard the.
Mary Louise Elizabeth Osborne: The advanced engagement system is made up of multiple components, starting with a risk based analytics engine, which uses AI algorithms to identify members and prioritize outreach based on factors like risk readiness acuity claims prescriptions and enrollment history.
Mary Louise Elizabeth Osborne: Our engine can find hard to reach high risk members. For example members with high predicted probability of substance use disorder or depression, but no associated diagnosis and existing health Records.
Mary Louise Elizabeth Osborne: As a result, 20% to 30% of our members obtained new behavioral health diagnosis after enrollment in the on track half plus program improving risk scores for these members.
Mary Louise Elizabeth Osborne: The next component of the advanced engagements system is our AI driven coach notes, which convert spoken interactions and to text significantly reducing the time care coaches spend recording engagement notes, resulting in increased care coach capacity about 20%.
Brandon H. LaVerne: As a result, 20-30% of our members obtained new behavioral health diagnoses after enrollment in the Ontrak Whole Health Plus program, improving risk scores for these members. The next component of the Advanced Engagement System is our AI-driven coach notes, which converts spoken interactions into text, significantly reducing the time care coaches spend recording engagement notes, resulting in increased care coach capacity of up to 20%, while our Care Signals engine flags and facilitates timely and relevant care interventions.
Mary Louise Elizabeth Osborne: While our care signals engine, slags, and facilitates timely and relevant care interventions.
Mary Louise Elizabeth Osborne: <unk> signals indicate important events like new diagnoses, new medications work stress and key factors that influenced wellness, enabling care coaches to proactively engage with members in advance of additional medical issues by setting revised goals and providing targeted coaching and support.
Mary Louise Elizabeth Osborne: Our next best action engine that offers immediate data driven recommendations to optimize care coaching interactions leading to a 25% reduction in time spent organizing schedules and tasks across caseload, while ensuring that resources are prioritized, where they're needed most.
Mary Louise Elizabeth Osborne: In certain cases, the next best action engine will trigger the built in AI virtual assistant which offers members an opportunity to engage with their entr'acte care team in more ways than ever before.
Brandon H. LaVerne: The care signals indicate important events like new diagnoses, new medications, work stress, and key factors that influence wellness, enabling care coaches to proactively engage with members in advance of additional medical issues by setting revised goals and providing targeted coaching support. Our next best action engine then offers immediate data-driven recommendations to optimize care coaching interactions, leading to a 25% reduction in time spent organizing schedules and tasks across caseloads, while ensuring that resources are prioritized where they're needed most. In certain cases, the next best action engine will trigger the built-in AI virtual assistant, which offers members an opportunity to engage with their Ontrak care team in more ways than ever before.
Mary Louise Elizabeth Osborne: So in here on tract care coaches adhere to best practices AI powered tools monitor for quality and fidelity. These technologies to evaluate care delivery and offer care coaches real time feedback into how well their interactions are serving members.
Mary Louise Elizabeth Osborne: The infrastructure the support certainly these dynamic capabilities is comprised of advanced data management systems, which have generated savings of 80% in the pipeline maintenance, Scott and delivered nearly 90% shorter turnaround times.
Mary Louise Elizabeth Osborne: Data exchange platform efficiently simplifies management of electronic data interchange, while effectively complying with federal requirements on best practices in the industry.
Mary Louise Elizabeth Osborne: Our infrastructure enables provider interoperability or the ability to exchange and use health information through high Trust certified industry standard frameworks.
Mary Louise Elizabeth Osborne: This creates a closed loop bidirectional data sharing ecosystem chemo seamlessly connecting providers specialists in onshore care coaches.
Mary Louise Elizabeth Osborne: Finally through our proprietary provider matching engine, we matched members with the right provider, reducing the stress of members on their own attempting to select the most suitable provider.
Brandon H. LaVerne: To ensure Ontrak care coaches adhere to best practices, AI-powered tools monitor for quality and fidelity. These technologies evaluate care delivery and offer care coaches real-time feedback into how well their interactions are serving members. The infrastructure that supports these dynamic capabilities is comprised of advanced data management systems, which have generated savings of 80% in pipeline maintenance costs and delivered nearly 90% shorter turnaround time. Our data exchange platform efficiently simplifies management of electronic data interchange while effectively complying with federal requirements and best practices in the industry.
Mary Louise Elizabeth Osborne: Our technology taps into <unk> 45 state behavioral health network to evaluate more than a dozen specialties and 30 sub specialties performance and outcomes as well as motive delivery diversity and demographics.
Mary Louise Elizabeth Osborne: Optimize provider matching helps drive remarkable clinical outcomes with members and providers are aligned and care.
Mary Louise Elizabeth Osborne: We've seen a greater than 50% clinically significant reduction in anxiety and depression symptoms evidenced by their guests Devon and PHP nine scores for members and our whole health plus program.
Mary Louise Elizabeth Osborne: In addition to announcing the rollout ever advanced engagements system.
Mary Louise Elizabeth Osborne: Integrating the recovering quality of life assessment, our recall into our whole health plus suite of products and services.
Mary Louise Elizabeth Osborne: Originally developed by the Oxford University Innovation lab, the integration of recall aligns perfectly with our focus on providing person centered measurement based care for individuals dealing with mental health and substance use conditions.
Brandon H. LaVerne: Our infrastructure enables provider interoperability, or the ability to exchange and use health information, through high-trust certified industry standard frameworks. This creates a closed-loop, bi-directional data-sharing ecosystem seamlessly connecting providers, specialists, and Ontrak care coaches. Finally, through our proprietary Provider Matching Engine, we match members with the right provider, reducing the stress of members on their own attempting to select the most suitable provider.
Mary Louise Elizabeth Osborne: Recall assessments are utilized to assess how mental health conditions psychological interventions and health care treatments affect patients' lives.
Mary Louise Elizabeth Osborne: Estimates prioritize understanding the individuals beyond diagnosis aligning with recovery oriented approaches as we adopt these assessments into archrock whole health plus on that.
Mary Louise Elizabeth Osborne: Im proud to share that we secured official recognition from the Oxford University Innovation lab is an authorized licensee serving as a testament to our focus on continued innovation and to improving outcomes through measured feedback.
Mary Louise Elizabeth Osborne: We recognize our Medicare advantage health plan customers are facing a challenging macro environment, including funding pressures declining star ratings elevated utilization trends and narrowing benefits packages.
Brandon H. LaVerne: Our technology taps into Ontrak's 45 state behavioral health networks to evaluate more than a dozen specialties and 30 subspecialties, performance, and outcomes, as well as mode of delivery, diversity, and demographics. Optimized provider matching helps drive remarkable clinical outcomes when members and providers are aligned in care. We've seen a greater than 50% clinically significant reduction in anxiety and depression symptoms, as evidenced by their GAT-7 and PHQ-9 scores, for members in our Whole Health Plus program.
Mary Louise Elizabeth Osborne: We believe this macro environment presents an opportunity for <unk> product offerings, we are well positioned to help our health plan partners better identify and engage their respective memberships to best utilize critical behavioral health benefits.
Mary Louise Elizabeth Osborne: Our technology care coaches and human centered approach integrates behavioral and physical health and can better identify and engage patients across the acuity spectrum.
Mary Louise Elizabeth Osborne: <unk> whole health plus program drives lower hospitalization in inpatient utilization.
Mary Louise Elizabeth Osborne: Medicare advantage plan partners membership.
Mary Louise Elizabeth Osborne: A program of continuous mental health assessments has also proven to improve health outcomes of untracked help members and increase engagement, which can contribute to the improvement in quality scores of health plan partners.
Brandon H. LaVerne: In addition to announcing the rollout of our advanced engagement system, we're integrating the Recovering Quality of Life Assessment, or REQOL, into our Whole Health Plus suite of products and services, originally developed by the Oxford University Innovation Lab. The integration of REQOL aligns perfectly with our focus on providing person-centered, measurement-based care for individuals dealing with mental health and substance use conditions. Recall assessments are utilized to assess how mental health conditions, psychological interventions, and health care treatments affect a patient's life.
Mary Louise Elizabeth Osborne: These quality scores are critical to maintaining or increasing our planned star ratings, which is a key driver of membership growth.
Mary Louise Elizabeth Osborne: <unk> whole health plus program is more important than ever and will.
Mary Louise Elizabeth Osborne: And very well aligned to help solve for these macro issues that Medicare advantage plans are facing today by delivering proven health outcomes and reducing costs, while also increasing engagement leading to increased quality scores.
Mary Louise Elizabeth Osborne: We are confident in our value proposition to health plan partners and are seeing continued demand in our rethink customer expansion and further progress in our pipeline as a result.
Mary Louise Elizabeth Osborne: Finally, we are pleased to have successfully completed our latest round of structured financing James will highlight in a few minutes.
Brandon H. LaVerne: These assessments prioritize understanding the individual beyond diagnosis and align with recovery-oriented approaches. As we adopt these assessments into Ontrak Whole Health Plus, I'm proud to share that we secured official recognition from the Oxford University Innovation Lab as an authorized licensee, serving as a testament to our focus on continued innovation and to improving outcomes through measured feedback. We recognize our Medicare Advantage Health Plan customers are facing a challenging macro environment, including funding pressures, declining star ratings, elevated utilization trends, and narrowing benefits packages.
Mary Louise Elizabeth Osborne: This funding provides us with additional runway to finance and execute our growth initiatives and reflects underlying confidence among our largest investors in our pipeline and prospects.
Mary Louise Elizabeth Osborne: These encouraging developments, including new signature sales momentum clinical outcomes and technological enhancements underscores the strength of our strategy the power of our product our dedication to our customers and members and the hard work of all of our employees.
Speaker Change: Now I'll pass it over to Mary Lou Osborn, who will provide further insight into our new customer and other exciting developments in our pipeline.
Speaker Change: Thank you Brandon.
Speaker Change: I am thrilled to provide a few updates on our new Medicaid health plan customer.
Speaker Change: And we discussed in our last earnings call.
Speaker Change: It is our privilege to be working with community care plan.
Brandon H. LaVerne: We believe this macro-environment presents an opportunity for Ontrak's product offer. We are well positioned to help our health plan partners better identify and engage their respective memberships to best utilize critical behavioral health benefits. Our technology, care coaches, and human-centered approach integrate behavioral and physical health and can better identify and engage patients across the acuity spectrum.'s Whole Health Plus program drives lower hospitalization and inpatient utilization for Medicare Advantage Planned Partners members.
Speaker Change: Hey provider service network plan located in South, Florida owned by large respected hospitals Memorial health care system and Broward health.
Speaker Change: We are happy to share that on tract Health has received Florida state approval from the Florida Agency for Healthcare administration.
Speaker Change: To partner with community care plan, providing behavioral health solution for adult members, aged 18 years and above.
Speaker Change: Beyond tract health.
Speaker Change: And community care teams are diligently working on the implementation plan.
We anticipate a go live date within the next 30 days.
Speaker Change: As we have reported in our last earnings call contract will be offering several of our behavioral health solutions to community care plans adult membership.
Speaker Change: Including whole health plus on track engage contract access and additional quality support for heated measures as well as a member portal.
Brandon H. LaVerne: Our program of continuous mental health assessments is also proven to improve health outcomes for Ontrak Health members and increase engagement, which can contribute to the improvement in quality scores of health plan partners. These quality scores are critical to maintaining or increasing a planned star rating, which is a key driver of membership growth. OnTrak's Whole Health Plus program is more important than ever and very well aligned to help solve for these macro issues that Medicare Advantage plans are facing today by delivering proven health outcomes and reducing costs, while also increasing engagement, leading to increased quality scores.
Speaker Change: In addition to this exciting contract when we are in the final contracting stages with two other prominent health plans representing over 2 million lives.
Speaker Change: Across all lines of business.
Speaker Change: Both health plans are interested in beginning a pilot partnership.
Speaker Change: One for Medicare advantage members any other for Medicaid members.
Speaker Change: Both health plans have stated when clinical and financial outcomes are proven.
Speaker Change: There is an intent to expand towards larger membership cohort.
Speaker Change: And across other lines of business.
Speaker Change: Also I'm delighted to share that we have expanded our behavioral health product offerings to one of our longstanding health plan partners.
Speaker Change: And <unk> health.
Speaker Change: The expanded partnership recently signed includes offering whole health plus to a broader commercial population.
Brandon H. LaVerne: We are confident in our value proposition to health plan partners and are seeing continued demand for our recent customer expansions and further progress in our pipeline as a result. Finally, we are pleased to have successfully completed our latest round of structured financing, which James will highlight in a few minutes. This funding provides us with additional runway to finance and execute our growth initiatives and reflects underlying confidence among our largest investors in our pipeline and process.
Speaker Change: As well as to self insured groups.
Together, the commercial and self insured group expansions represent more than a 6.5 X increase.
Speaker Change: And the number of Sentara health plan members eligible for the on track whole health plus program.
Speaker Change: We have already begun outreach and engage individuals identified in the expansions with unaddressed anxiety.
Speaker Change: Depression substance use disorder, and underlying chronic diseases for personalized care coaching.
Speaker Change: And prompt access to behavioral health providers when needed.
Brandon H. LaVerne: These encouraging developments, including the new signature, sales momentum, clinical outcomes, and technological enhancements, underscore the strength of our strategy, the power of our product, our dedication to our customers and members, and the hard work of all of our employees. Now I'll pass it over to Mary Lou Osborne, who will provide further insight into our new customer and other exciting developments in our pipeline. Mary Lou.
Speaker Change: In addition, we are in discussions with Centaur to further expand whole health plus.
Speaker Change: And on track engaged to a new line of business. These expansions and strong partnership illustrates the trust that Sentara has placed in on track.
Speaker Change: And serves as a testament to the five year relationship we have built together, achieving clinical and financial outcomes and effectively serving members with behavioral health conditions.
Speaker Change: Finally, the sales pipeline remains strong and growing.
Speaker Change: With approximately 26 active prospects, representing 15 million members across all lines of business.
Mary Louise Elizabeth Osborne: Thank you, Brandon. I am thrilled to provide a few updates on our new Medicaid health plan customer that we discussed in our last earnings call. It is our privilege to be working with Community Care Plan, a provider service network plan located in South Florida owned by large respective hospitals, Memorial Healthcare System, and Broward Health. We are happy to share that Ontrak Health has received Florida state approval from the Florida Agency for Healthcare Administration, and partners with Community Care Plan providing behavioral health solutions for adult members ages 18 years and above. The Ontrak Health and Community Care teams are diligently working on the Joint Implementation Plan, and we anticipate a go-live date within the next 30 days.
Speaker Change: We are happy with our progress of executing our new logo with a prominent Medicaid health plan.
Speaker Change: Any care plan as well as our multiple executed expansions with Centaur Hal.
Speaker Change: We look forward to welcoming our new customers with great excitement.
Speaker Change: We build these relationships serving new populations across multiple lines of business.
Speaker Change: Serving members in need of behavioral health support care and treatment.
Now I'd like to turn the call over to our Chief Financial Officer James Park.
James J. Park: Thanks, Mary Lou.
James J. Park: During the fourth quarter, we recorded revenue.
James J. Park: <unk> <unk>.
James J. Park: 41% year over year increase.
James J. Park: 2% to 50% increase in portal efforts enrolled members during the fourth quarter of 2023.
James J. Park: There to the same period in 2022.
Mary Louise Elizabeth Osborne: As we reported in our last earnings call, Ontrak will be offering several of our behavioral health solutions to community care plans and adult membership, including Whole Health Plus, OnTrack Engage, and OnTrack Access, in addition to quality support for HEDIS measures as well as a member portal. In addition to this exciting contract win, we are in the final contracting phase with two other prominent health plans representing over 2 million lives across all lines of business. Both health plans are interested in beginning a pilot partnership, one for Medicare Advantage members and the other for Medicaid members.
James J. Park: At the beginning of the quarter, we had 2290 equivalent enrolled members and ended with 1758 at the end of the quarter for a simple average of 2028.
James J. Park: That equates to revenue of about $546 per health plan enrolled member per month for the quarter.
James J. Park: <unk> decreased from $552.
James J. Park: Health plan enrolled member per month.
James J. Park: Three of 2023.
James J. Park: <unk> from acquired $139 in Q4 two.
James J. Park: Regarding our Q4 number of metrics.
James J. Park: We enrolled a total of 654 members during the quarter compared to 1272 in Q3 of this year and 754 in Q4.
James J. Park: Sure.
James J. Park: Regarding Q4, gross enrolments borrower outreach pool, which averaged 4131 for the quarter.
James J. Park: Annualized this 2% to 63% enrollment vary compared to 50% enrollment rate in Q3 of 2023 and 66% in Q4.
James J. Park: Both health plans have stated that when clinical and financial outcomes are proven, there is an intent to expand to a larger membership cohort and across other lines of business. Also, I'm delighted to share that we have expanded our behavioral health product offerings to one of our longstanding health plan partners and to Tara Hell. The expanded partnership recently signed includes offering Whole Health Plus to a broader commercial population, as well as to self-insured groups.
James J. Park: Sure.
James J. Park: Our average monthly this enrollment rate was 16% of the current quarter compared to 11% in both Q3 of two.
James J. Park: 2023 in Q4.
James J. Park: Sure.
James J. Park: But this enrollment rate was higher in the current quarter due to a significant number of members moving covered.
James J. Park: Medicaid Redetermination.
James J. Park: Without the impact of these members or this enrollment rate for the quarter would have been slightly lower than historical rates.
James J. Park: Further we graduated a 194 enrolled members during the quarter.
James J. Park: Together, the commercial and self-insured group expansions represent more than a 6.5X increase, and the number of Sentara Health Plan members eligible for the Ontrak Whole Health Plus program has already begun. We have already begun to outreach to and engage individuals identified in the expansions with unaddressed anxiety. and prompt access to behavioral health providers when needed. In addition, we are in discussions with Centauri to further expand Whole Health Plus and Ontrak Engage to a new line of business.
James J. Park: This equates to about 8% of enrolled members in the program at the beginning of the quarter, which was consistent with prior periods.
The impact of all this was a net enrollment decrease of 539 members in the.
James J. Park: The fourth quarter.
James J. Park: Our gross margin for the fourth quarter was 64, 6%, which decreased from 32% in Q3.
James J. Park: An increase of 61, 2% for the fourth quarter of last year.
James J. Park: The decrease in our gross margin in Q4 2000 compared to Q3.
James J. Park: Due to an increase in our <unk>.
James J. Park: Cost of revenue primarily related to the increase of member facing departments at the end of Q3.
James J. Park: These expansions and strong partnership illustrate the trust that Sentara has placed in Ontrak and serve as a testament to the five-year relationship we have built together, achieving clinical and financial outcomes and effectively serving members with behavioral health conditions. Finally, the sales pipeline remains strong and growing, with approximately 26 active prospects representing 15 million members across all lines of business. We are happy with our progress in executing a new logo with a prominent Medicaid health plan.
James J. Park: The increase in our gross margin compared to prior year was primarily due to the continued operational efficiencies in our member facing teams with the utilization of our <unk> system and process improvement as discussed earlier.
James J. Park: And in prior quarters.
James J. Park: Our coating capacity has now improved by over 90% accurate when we began to implement these initiatives all while continuing to provide the quality of care our members and customers.
James J. Park: Turning to the balance sheet and cash flow our task.
James J. Park: From operations in the fourth quarter was negative.
James J. Park: $6 million compared to negative $1 $4 million in the fourth quarter last year and negative $1 $8 million in Q3 of 443.
James J. Park: Community Care Plan, as well as our multiple executed expansions with Centaur Health. We look forward to welcoming our new customers with great excitement as we build these relationships serving new populations across multiple lines of business, serving members in need of behavioral health support, care, and treatment. Now, I'd like to turn the call over to our Chief Financial Officer, James Park.
James J. Park: This resulted in our average monthly cash burn could be about $1 3 million.
James J. Park: Per month for the full year 2023.
James J. Park: We believe our operational efficiencies and anticipated revenues from the appropriate primary Lou mentioned, how those are putting cash flow positivity in the near future.
James J. Park: We ended the quarter with cash and cash equivalents of $9 7 million up from $3 $2 million of our firm.
James J. Park: During the fourth quarter, we recorded revenue of $3.5 million, a 41% year-over-year increase due primarily to a 50% increase in total average enrolled members during the fourth quarter of 2023 compared to the same period in 2022. At the beginning of the quarter, we had 2,297 enrolled members and ended with 1,758 at the end of the quarter for a simple average of 2,029. That equates to revenue of about $546 per health plan enrolled member per month for the quarter, a small decrease from $552 per health plan enrolled member per month in Q3 of 2023 and an increase from $539 in Q4 of 2022, regarding our Q4 number metric.
James J. Park: Quarter.
James J. Park: There was no restricted cash outflows December 31st quarter can we agree however.
James J. Park: However, including restricted cash at the end of Q3.
James J. Park: The total capital of $9 2 million at the end of the quarter.
James J. Park: As previously announced in December of 2023.
James J. Park: <unk> at a public offering of $6 $3 million before offering related fees.
James J. Park: With a private placement converting all of that $2 million of our people in order to common equity.
James J. Park: Additionally in March 2024, we completed an amendment to the <unk> program and that gives us access to.
James J. Park: $15 million senior secured demand note with the setup of our monthly draw downs over the next year.
James J. Park: <unk> approval at requirement withdrawal.
James J. Park: These financing transactions have provided us with the additional capital needed to execute upon our pipeline, while significantly reducing our debt obligation and improving our balance sheet.
James J. Park: They serve as a testament to our ability to execute and validation of an evolving business.
James J. Park: Also in addition to the one <unk>, we have already drawn down in April.
James J. Park: We enrolled a total of 654 members during the quarter, compared to 1,272 in Q3 of this year and 754 in Q4 of 2022. Dividing Q4 gross enrollments by our outreach pool, which averaged 4,131 for the quarter, it annualizes to a 63% enrollment rate, compared to 50% enrollment rate in Q3 of 2023 and 66% in Q4 of 2022. Our average monthly disenrollment rate was 16% in the current quarter, compared to 11% in both Q3 of 2023 and Q4 of 2022.
James J. Park: Pro Amendment.
James J. Park: We also received cash proceeds of $149 million.
James J. Park: The exercise of warrants during March and April, which continue to build our capital procurement pipeline.
James J. Park: While we can't predict if and when the remaining warrants will be exercised.
James J. Park: Total nominal warrant exercise price would equate to $360 million.
James J. Park: Once that newly issued warrants with the current reset provision probably registered.
James J. Park: We will not be providing annual guidance at this point for tier one and 2044.
James J. Park: We anticipate revenue in the range of $2, <unk> and $2 $9 million.
Now we will open up for questions.
Speaker Change: Thank you please standby, while we compile the Q&A roster.
Speaker Change: Our first question comes from the line of Jonathan Aschoff of Roth <unk> your.
Jonathan Aschoff: Your question please Jonathan.
Jonathan Aschoff: Thank you.
Jonathan Aschoff: What does the new Florida agency for healthcare administration aboard.
James J. Park: The disenrollment rate was higher in the current quarter due to a significant number of members losing coverage due to Medicaid redetermination. Without the impact of these members, our disenrollment rate for the quarter would have been slightly lower than historical disenrollment. In addition, we graduated 194 enrolled members during the quarter. This equates to about 8% of the enrolled members in the program at the beginning of the quarter, which is consistent with prior periods. The impact of all this was a net enrollment decrease of 539 members in the fourth quarter.
Jonathan Aschoff: <unk> for your new customer and what might be the timeline for it to translate into increased revenue we're on track.
You really would want to take that.
Jonathan Aschoff: No.
Jonathan Aschoff: Florida.
Jonathan Aschoff: Agency.
Jonathan Aschoff: Approach that's aka.
Jonathan Aschoff: That agency approves all health plan vendors.
Jonathan Aschoff: That health plans want to work with in Florida. So it's terrific news that we've been approved.
Jonathan Aschoff: That also means any additional Florida customers leave it brings forward have already been through the Florida agency approval process.
Speaker Change: Does that answer your question.
Speaker Change: Yes.
Speaker Change: Next one is how much more financial impact is negative financial impact is expected for many additional Medicaid dis enrollment.
James J. Park: Our gross margin for the fourth quarter was 64.6%, which decreased from 72% in Q3 2023 and increased from 61.2% in the fourth quarter of last year. The decrease in our gross margin in Q4 2023 compared to Q3 2023 was due to an increase in our cost of revenue, primarily relating to the increase in member-facing departments at the end of Q3. The increase in our growth margin compared to the prior year was primarily due to the continued operational efficiencies in our member-facing teams with the utilization of various AI and other systems and process improvements we discussed earlier and in prior quarters. Our coaching capacity has now improved by over 90% since last year when we began to implement these initiatives, all while continuing to provide the quality of care our members and customers need.
Speaker Change: I think from what we've seen so far is the bulk of the impact is.
Speaker Change: Alrighty, then there we definitely saw an impact in the fourth quarter as <unk> indicated in our December all mix.
Speaker Change: It's not entirely done yet, but from everything we've seen has definitely slowed.
Speaker Change: So don't expect a significant portion going forward.
Speaker Change: Okay.
Speaker Change: Could you please explain a bit clearer than the March 'twenty, one press release.
Speaker Change: The advanced engagement system what.
Speaker Change: Does it allow you to do that you could not do before implementing it.
Speaker Change: Yes.
Speaker Change: It's really putting together a lot of components that are that are bringing AI in and around our entire the entire journey of our members and so when we think a couple of years ago.
Speaker Change: Our members were.
Speaker Change: Predominantly talking to us on the phone our coaches, we would be serving members into the treatments communicating.
Speaker Change: Offline necessarily with providers and now we have the ability to we have the upfront ability to identify members. We've expanded that capability, we've expanded the timeline and the processing speed at which we can process and information.
James J. Park: Turning to the balance sheet and cash flow, our cash flow from operations in the 4th quarter was negative $3.6 million compared to negative $1.4 million in the 4th quarter last year and negative $1.8 million in Q3 of 2022. This resulted in our average monthly cash burn to be about $1.3 million per month for the full year 2023.
Speaker Change: We're serving up a lot more information to our coaches.
Speaker Change: So they have an understanding of what those next best actions are for the members that before it was read through a bunch of notes.
Speaker Change: These notes now are also being driven.
Speaker Change: Driven.
James J. Park: We believe our operational efficiencies and anticipated revenues from the process that Mary Lou mentioned have us approaching cash flow positivity in the near future. We ended the quarter with cash and cash equivalents of $9.7 million, up from $3.2 million at the end of the last quarter. There was no restricted cash as of December 31st, 2023.
Speaker Change: Through the AI and so the coach rather than following up a meeting and having to spend 15 to 2030 minutes to document what happen to that process is happening contemporaneously with the AI.
Speaker Change: Which frees up these coaches to serve more members.
Speaker Change: And so that's not only in efficiency, but it's also in support of incremental membership.
Speaker Change: And so then just expanding.
Speaker Change: With.
James J. Park: However, including restricted cash at the end of Q3, 2023, the total cash was $9.2 million at the end of the quarter. As previously announced, in December of 2023, we completed a public offering of $6.3 million before offering related fees, concurrent with a private placement converting all but 2 million of our people all noted to common equity. Additionally, in March 2024, we completed an amendment to the Key Flow Agreement that gives us access to a $15 million Senior Secure Demand Note, which is set up as monthly drawdowns over the next year and subject to approval at the time of the draw.
Speaker Change: More assessments are virtual assistance, Ken can now.
Speaker Change: Engage with our members and create interactions.
Speaker Change: Between coaching visits and in between provider visits they can help follow up and work on timing and reminders, which helps keep people in care and treatment.
Speaker Change: And in which in turn helps keep the members engaged and engagement is really most important at this point.
Speaker Change: To make sure that these members can stay on their journey stay.
Speaker Change: Maintaining their treatment plans and within the onsite program, and then ultimately serving and reducing their cost and improving their health.
Speaker Change: Okay, and lastly is the winding down of using your services by the customer that left in February of 2024. The overwhelming reason why the revenue in the fourth quarter dropped quarter over quarter.
James J. Park: These financing transactions have provided us with the additional capital needed to execute upon our pipeline while significantly reducing our debt obligation and improving our balance. They serve as a testament to our ability to execute and validation of Ontrak's evolving vision.
Speaker Change: Yes, Thats correct.
Speaker Change: No.
Speaker Change: Slight larger impact is going to be.
Speaker Change: Okay.
Speaker Change: Termination whenever that was.
Speaker Change: Also Canada.
Speaker Change: Okay. Thank you very much.
Operator: Also, in addition to the $1.5 million we have already drawn down in April on the New Keep Well Amendment, we also received cash proceeds of $1.9 million from the exercise of warrants during March and April, which continue to build our capital to execute on a pipeline. While we can't predict if and when the remaining warrants will be exercised, the total amount of warrants at their exercise price would equate to an additional $16 million in cash once the newly issued warrants with the current reset provisions have been legislated. We will not be providing annual guidance at this point. For Q1 2024, we anticipate revenue in the range of $2.5 million and $2.9 million. Now we will open up for questions.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Thank you. Thank you.
Speaker Change: I would now like to turn the conference back to Brandon Laverne for closing remarks, Sir.
Brandon H. LaVerne: Alright, Thank you Latif.
Brandon H. LaVerne: We'd like to thank everyone for participating on our call today and I wish you all great.
Speaker Change: Thank you.
Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: [music].
Operator: Thank you. Please stand by while we compile the Q&A roster. Our first question comes from the line of Jonathan Aschoff of Roth MKM. Your question, please, Jonathan. Thank you. You know, guys, what does the new Florida Agency for Healthcare Administration Award mean for your new customer? And, you know, what might be the timeline for it to translate into increased revenue for Ontrak?
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: [music].
Brandon H. LaVerne: So the Florida agency approved, that's ACCA, and that agency approves all health plan vendors that health plans want to work with in Florida. So it's terrific news that we've been approved. That also means any additional Florida customers we would bring forward have already been through the Florida agency approval process. Does that answer your question? Yes.
James J. Park: How much more negative financial impact is expected from any additional Medicaid disenrollment?
Brandon H. LaVerne: I think from what we've seen so far, the bulk of the impact has already been there. We definitely saw an impact in the fourth quarter, as James had indicated, in our disenrollments. It's not entirely done yet, but from everything we've seen, it's definitely slow. And so don't expect a significant portion going forward.
Brandon H. LaVerne: Okay, um, could you please explain, you know, a bit clearer than the March 21 press release about, you know, the advanced engagement system? What does it allow you to do that you could not do before?
Brandon H. LaVerne: It's really putting together a lot of components that are bringing AI in and around our entire journey of our members. And so, you know, when we think a couple of years ago, our members were predominantly talking to us on the phone, our coaches, we would be, you know, serving members into treatment, communicating, you know, offline necessarily with providers.
Brandon H. LaVerne: And now we have the ability to, you know, we've had the upfront ability to identify members. We've expanded that capability. We've expanded the timeline and the processing speed at which we can process that information. We're serving up a lot more information to our coaches so that they have an understanding of what those next best actions are for the members, whereas before, it was just a bunch of notes. These notes are now also being driven through the AI.
Speaker Change: [music].
Brandon H. LaVerne: And so the coach, rather than following up a meeting and having to spend 15, 20, 30 minutes documenting what happened, that process is happening contemporaneously with the AI, which frees up these coaches to serve more members. And so that's not only about efficiency, but it's also in support of, you know, incremental membership work. And so, just expanding, you know, with, you know, more assessments, our virtual assistants can now engage with our members and create interactions in between coaching visits and in between provider visits; they can help follow up and work on timing and reminders, which helps keep people in care and treatment.
Brandon H. LaVerne: And which in turn helps keep the members engaged, and engagement is really most important at this point to make sure that these members can stay on their journey, maintain their treatment plans and within the program, and then ultimately, you know, serving and reducing their costs and improving their health.
Brandon H. LaVerne: Okay. And lastly, you know, is the winding down of using your services by the customer that left in February of 2024 the overwhelming reason why revenue in the fourth quarter dropped quarter over quarter? Yes, that's correct.
Brandon H. LaVerne: Yes, that's correct. Now, the slight larger impact is going to be. The lead could read determination, but that was also a part of it.
Brandon H. LaVerne: I would now like to turn the conference back to Brandon LaVerne for his closing remarks, sir.
Operator: I would like to thank everyone for participating on our call today, and I wish you all a great afternoon. Thank you. And this concludes today's conference call. Thank you for participating. You may now disconnect. ?? ?? ?? ?? ?? ?? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?? ?? ?? ?? ?? ?? ?? ?? ??
Operator: And this concludes today's conference call. Thank you for participating. You may now disconnect. ?? ?? ?? ?? ?? ?? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Thank you for standing by, and welcome to OnTrack Health's fourth quarter.
Operator: And you're on the 2023 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star-1-1 on your telephone. To remove yourself from the queue, you may press star-1-1 again.
Ryan Halsted: I would now like to hand the call over to Ryan Halstead, Investor Relations. Thank you, operator. And thank you all for participating in today's call. Joining me today are Brandon LaVerne, chief executive officer and chief operating officer, Mary Lou Osborne, president and chief commercial officer, and James Park, chief financial officer. Earlier today, Ontrak released financial results for the quarter ending December 31, 2020. A copy of the press releases is available on the company's website.
Ryan Halsted: Before we begin, I would like to make the following remarks concerning forward-looking statements. All statements in this conference call, other than historical facts, are forward-looking statements. The words anticipate, believes, estimates, expects, intends, guidance, confidence, targets, projects, and some other expressions typically are used to identify forward-looking statements. These forward-looking statements are not guarantees of future performance but may involve and are subject to certain risks and uncertainties. Other factors that may affect Ontrak's business, financial condition, and other operating results include, but are not limited to, the risk factors described in the risk factors sections of the Form 10-K and Form 10-Q as filed with the SEC.
Ryan Halsted: Therefore, actual outcomes and results may differ materially from those expressed or implied by these forward-looking statements. Ontrak expressly disclaims any intent or obligation to update these forward-looking statements.
Brandon H. LaVerne: Thank you, Ryan. We're excited to provide updates on the momentum in our pipeline and how Ontrak's continued innovation with the Advanced Engagement System is addressing the needs of our customers and building demand with prospective customers. Mary Lou will go into details with respect to prospects shortly. We also recognize our Medicare Advantage health plan customers are facing a challenging macro environment at the moment, which represents opportunities for Ontrak and our value proposition to help our health plan partners better serve their members in a cost-efficient manner. But first, allow me to cover the highlights from the recent quarter.
Brandon H. LaVerne: Aside from new business development opportunities that Mary Lou will discuss, we focus this quarter on continued innovation and technology. As we continue to develop our AI-infused technology, we are able to offer increased efficiencies and higher ROI to our customers and pipeline while maintaining our patient-centered focus. We recently introduced Ontrak's Advanced Engagement System to maximize more efficient and effective engagement by integrating AI throughout the member experience. The ONTRAP Advanced Engagement System enables member engagement at greater scale and with greater efficiency than ever before.
Brandon H. LaVerne: We have achieved a member outreach success rate of 54% across all lines of business, which is more than double what we believe is the industry standard. The Advanced Engagement System is made up of multiple components, starting with a risk-based analytics engine, which uses AI algorithms to identify members and prioritize outreach based on factors like risk, readiness, acuity, claims, prescriptions, and enrollment history. Our engine can find hard-to-reach, high-risk members, for example, members with a high predicted probability of substance use disorder or depression but no associated diagnosis in existing health records.
Speaker Change: [music].
Brandon H. LaVerne: As a result, 20 to 30 percent of our members obtain new behavioral health diagnoses after enrollment in the Ontrak Whole Health Plus program, improving risk scores for these members. The next component of the Advanced Engagement System is our AI-driven coach notes, which converts spoken interactions into text, significantly reducing the time care coaches spend recording engagement notes, resulting in increased care coach capacity of up to 20%, while our Care Signals engine flags and facilitates timely and relevant care interventions.
Brandon H. LaVerne: The care signals indicate important events like new diagnoses, new medications, work stress, and key factors that influence wellness, enabling care coaches to proactively engage with members in advance of additional medical issues by setting revised goals and providing targeted coaching support. Our next best action engine then offers immediate data-driven recommendations to optimize care coaching interactions, leading to a 25% reduction in time spent organizing schedules and tasks across caseloads, while ensuring that resources are prioritized where they're needed most. In certain cases, the next best action engine will trigger the built-in AI virtual assistant, which offers members an opportunity to engage with their Ontrak care team in more ways than ever before.
Speaker Change: Thank you for standing by and welcome to on track Health's fourth quarter and year end 2023 earnings conference call. At this time all participants are in a listen only mode. After the speaker presentation. There will be a question and answer session to ask a question. During the session you will need to press star one one on your telephone to remove yourself from the queue.
Speaker Change: Press Star one won that game I would now like to hand, the call over to Ryan Halsted Investor Relations. Please.
Thank you operator, and thank you all for participating in today's call. Joining me today are Brandon Laverne, Chief Executive Officer, and Chief Operating Officer, Mary Lou Osborn, President and Chief Commercial Officer, and James Park, Chief Financial Officer earlier today on track released financial results for the quarter ending December.
Brandon H. LaVerne: To ensure Ontrak care coaches adhere to best practices, AI-powered tools monitor for quality and fidelity. These technologies evaluate care delivery and offer care coaches real-time feedback into how well their interactions are serving them. The infrastructure that supports these dynamic capabilities is comprised of advanced data management systems, which have generated savings of 80% in pipeline maintenance costs and delivered nearly 90% shorter turnaround time. Our data exchange platform efficiently simplifies management of electronic data interchange while effectively complying with federal requirements and best practices in the industry.
Speaker Change: 31, 2023, a copy of the press release is available on the company's website before we begin I would like to make the following remarks concerning forward looking statements. All statements in this conference call other than historical facts are forward looking statements. The words anticipates believes estimates expects intends guy.
Speaker Change: <unk> confidence targets projects and some other expressions typically are used to identify forward looking statements. These forward looking statements are not guarantees.
Speaker Change: Future performance, but may involve and are subject to certain risks and uncertainties. Other factors that may affect contracts business financial condition and other operating results, which include but are not limited to the risk factors described in the risk factors section of the Form 10-K and Form 10-Q as filed with the SEC.
Brandon H. LaVerne: Our infrastructure enables provider interoperability, or the ability to exchange and use health information, through high-trust certified industry standard frameworks. This creates a closed-loop, bi-directional data-sharing ecosystem seamlessly connecting providers, specialists, and OnTrackCare coaches. Finally, through our proprietary provider matching engine, we match members with the right provider, reducing the stress of members on their own attempting to select the most suitable provider.
Speaker Change: Therefore, actual outcomes and results may differ materially from those expressed or implied by these forward looking statements on track expresses expressly disclaims any intent or obligation to update. These forward looking statements with that I'd like to turn the call over to Brendan.
Speaker Change: Thank you Brian.
Brandon H. LaVerne: Our technology taps into Ontrak's 45-state behavioral health network to evaluate more than a dozen specialties and 30 sub-specialties, performance and outcomes, as well as mode of delivery, diversity, and demographics. Optimized provider matching helps drive remarkable clinical outcomes when members and providers are aligned in care. We've seen a greater than 50% clinically significant reduction in anxiety and depression symptoms, as evidenced by their GAT-7 and PHQ-9 scores, for members in our Whole Health Plus program.
Brendan: We're excited to provide updates on the momentum in our pipeline and how on tracts continued innovation with the advanced engagements system is addressing the needs of our customers and building demand with prospective customers Mary Lou will go into details with respect to prospects shortly.
Brendan: We also recognize our Medicare advantage health plan customers are facing a challenging macro environment at the moment, which represent opportunities for on track and our value proposition to help our health plan partners better serve their members in a cost efficient manner.
Mary Louise Elizabeth Osborne: First allow me to cover highlights from the recent quarter.
Brandon H. LaVerne: In addition to announcing the rollout of our Advanced Engagement System, we're integrating the Recovering Quality of Life Assessment, or REQOL, into our Whole Health Plus suite of products and services, originally developed by the Oxford University Innovation Lab. The integration of REQOL aligns perfectly with our focus on providing person-centered, measurement-based care for individuals dealing with mental health and substance use conditions. Recall assessments are utilized to assess how mental health conditions, psychological interventions, and health care treatments affect a patient's life.
Mary Louise Elizabeth Osborne: Aside from new business development opportunities, but Mary Lou will discuss we focus this quarter on continued innovation and technology focus as we continue to develop our AI infused technology, we are able to offer increased efficiencies and higher ROI to our customers and pipeline.
Mary Louise Elizabeth Osborne: In Canada, our patient centered focus.
Mary Louise Elizabeth Osborne: We recently introduced <unk> advanced engagement system to maximize more efficient and effective engagement by integrating AI throughout the member experience.
Mary Louise Elizabeth Osborne: Advanced engagement system enables member engagement that greater scale and with greater efficiency than ever before.
Mary Louise Elizabeth Osborne: We have achieved a member outreach success rate of 54% and across all lines of business, which is more than double what we believe is the industry standard the.
Brandon H. LaVerne: These assessments prioritize understanding the individual beyond diagnosis, aligning with recovery-oriented approaches. As we adopt these assessments into Ontrak Whole Health Plus, I'm proud to share that we secured official recognition from the Oxford University Innovation Lab as an authorized licensee, serving as a testament to our focus on continued innovation and to improving outcomes through measured feedback. We recognize our Medicare Advantage health plan customers are facing a challenging macro environment, including funding pressures, declining star ratings, elevated utilization trends, and narrowing benefits packages.
Mary Louise Elizabeth Osborne: The advanced engagement system is made up of multiple components, starting with a risk based analytics engine, which uses AI algorithms to identify members and prioritize outreach based on factors like risk readiness acuity claims prescriptions and enrollment history.
Our engine can find hard to reach high risk members. For example members with high predicted probability of substance use disorder or depression, but no associated diagnosis and existing health Records.
Mary Louise Elizabeth Osborne: As a result, 20% to 30% of our members obtained new behavioral health diagnoses after enrollment in the on track half plus program improving risk scores for these members.
Brandon H. LaVerne: We believe this macro-environment presents an opportunity for OnTrack's product offer. We are well positioned to help our health plan partners better identify and engage their respective memberships to best utilize critical behavioral health benefits. Our technology, care coaches, and human-centered approach integrate behavioral and physical health and can better identify and engage patients across the acuity spectrum. Ontrak's Whole Health Plus program drives lower hospitalization and inpatient utilization for Medicare Advantage Planned Partners members.
Mary Louise Elizabeth Osborne: The next component of the advanced engagements system is our AI driven coach notes, which convert spoken interactions and to text significantly reducing the time care coaches spend recording engagement notes, resulting in increased care coach capacity of up to 20%.
Mary Louise Elizabeth Osborne: While our care signals engine, slags, and facilitates timely and relevant care interventions.
Mary Louise Elizabeth Osborne: The care signals indicate important events like new diagnoses, new medications work stress and key factors that influenced wellness, enabling care coaches to proactively engage with members in advance of additional medical issues by setting revised goals and providing targeted coaching and support.
Brandon H. LaVerne: Our program of continuous mental health assessments is also proven to improve health outcomes for Ontrak Health members and increase engagement, which can contribute to the improvement in quality scores of health plan partners. These quality scores are critical to maintaining or increasing a planned star rating, which is a key driver of membership growth. OnTrak's Whole Health Plus program is more important than ever and very well aligned to help solve for these macro issues that Medicare Advantage plans are facing today by delivering proven health outcomes and reducing costs, while also increasing engagement, leading to increased quality scores.
Mary Louise Elizabeth Osborne: Our next best action engine that offers immediate data driven recommendations to optimize care coaching interactions leading to a 25% reduction in time spent organizing schedules and tasks across caseload, while ensuring that resources are prioritized, where they're needed most.
Mary Louise Elizabeth Osborne: In certain cases, the next best action engine will trigger the built in AI virtual assistant which offers members an opportunity to engage with their entr'acte care team in more ways than ever before.
Mary Louise Elizabeth Osborne: So in here on tract care coaches adhere to best practices AI powered tools monitor for quality and fidelity.
Brandon H. LaVerne: We are confident in our value proposition to health plan partners and are seeing continued demand for our recent customer expansions and further progress in our pipeline as a result. Finally, we are pleased to have successfully completed our latest round of structured financing, which James will highlight in a few minutes. This funding provides us with additional runway to finance and execute our growth initiatives and reflects underlying confidence among our largest investors in our pipeline and process.
Mary Louise Elizabeth Osborne: Technology evaluate care delivery and offer care coaches realtime feedback into how well their interactions are serving members.
Mary Louise Elizabeth Osborne: The infrastructure the support certainly these dynamic capabilities is comprised of advanced data management systems, which have generated savings of 80% in the pipeline maintenance, Scott and delivered nearly 90% shorter turnaround times.
Mary Louise Elizabeth Osborne: Data exchange platform efficiently simplifies management of electronic data interchange, while effectively complying with federal requirements on best practices in the industry.
Mary Louise Elizabeth Osborne: Our infrastructure enables provider interoperability or the ability to exchange and use health information through high Trust certified industry standard frameworks. This creates a closed loop bidirectional data sharing ecosystem chemo seamlessly connecting providers specialists and on child care coaches.
Brandon H. LaVerne: These encouraging developments, including the new signature, sales momentum, clinical outcomes, and technological enhancements, underscore the strength of our strategy, the power of our product, our dedication to our customers and members, and the hard work of all of our employees. Now I'll pass it over to Mary Lou Osborne, who will provide further insight into our new customer and other exciting developments in our pipeline. Mary Lou.
Mary Louise Elizabeth Osborne: Finally through our proprietary provider matching engine, we matched members with the right provider, reducing the stress of members on their own attempting to select the most suitable provider.
Mary Louise Elizabeth Osborne: Our technology taps into <unk> 45 state behavioral health networks to evaluate more than a dozen specialties and 30 sub specialties performance and outcomes as well as motive delivery diversity and demographics.
Mary Louise Elizabeth Osborne: Thank you, Brandon. I am thrilled to provide a few updates on our new Medicaid health plan customer that we discussed in our last earnings call. It is our privilege to be working with Community Care Plan, a Provider Service Network plan located in South Florida, owned by large respective hospitals, Memorial Healthcare System, and Broward Health. We are happy to share that Ontrak Health has received Florida state approval from the Florida Agency for Healthcare Administration, partner with Community Care Plan, providing behavioral health solutions for adult members ages 18 years and above. The Ontrak Health and Community Care teams are diligently working on the Joint Implementation Plan. We anticipate a go-live date within the next 30 days.
Mary Louise Elizabeth Osborne: Optimize provider matching helps drive remarkable clinical outcomes with members and providers are aligned and care we've.
Mary Louise Elizabeth Osborne: We've seen a greater than 50% clinically significant reduction in anxiety and depression symptoms evidenced by their guests Devon and PHP nine scores for members and our whole health plus program.
Mary Louise Elizabeth Osborne: In addition to announcing the rollout ever advanced engagements system.
Mary Louise Elizabeth Osborne: Integrating the recovering quality of life assessments or recall into our whole health plus suite of products and services.
Mary Louise Elizabeth Osborne: Originally developed by the Oxford University Innovation lab, the integration of recall aligns perfectly with our focus on providing person centered measurement based care for individuals dealing with mental health and substance use conditions.
Mary Louise Elizabeth Osborne: As we reported in our last earnings call, Ontrak will be offering several of our behavioral health solutions to community care plans and adult membership, including Whole Health Plus, OnTrack Engage, and OnTrack Access, in addition to quality support for HEDIS measures as well as a member portal. In addition to this exciting contract win, we are in the final contracting phase with two other prominent health plans representing over 2 million lives across all lines of business. Both health plans are interested in beginning a pilot partnership, one for Medicare Advantage members and the other for Medicaid members.
Mary Louise Elizabeth Osborne: Assessments are utilized to assess how mental health conditions psychological interventions and healthcare treatments affect patients' lives.
Mary Louise Elizabeth Osborne: These assessments prioritize understanding the individual beyond diagnosis aligning with recovery oriented approaches as we adopt these assessments into archrock whole health clubs.
Mary Louise Elizabeth Osborne: Im proud to share that we secured official recognition from the Oxford University Innovation lab is an authorized licensee serving as a testament to our focus on continued innovation and so improving outcomes through measured feedback.
Mary Louise Elizabeth Osborne: We recognize our Medicare advantage health plan customers are facing a challenging macro environment, including funding pressures declining star ratings elevated utilization trends and narrowing benefits packages.
Mary Louise Elizabeth Osborne: Both health plans have stated that when clinical and financial outcomes are proven, there is an intent to expand to a larger membership cohort and across other lines of business. Also, I'm delighted to share that we have expanded our behavioral health product offerings to one of our longstanding health plan partners and to Tara Helm. The expanded partnership recently signed includes offering Whole Health Plus to a broader commercial population, as well as to self-insured groups.
Mary Louise Elizabeth Osborne: We believe this macro environment presents an opportunity for <unk> product offerings.
Mary Louise Elizabeth Osborne: Well positioned to help our health plan partners better identify and engage their respective memberships to best utilize critical behavioral health benefits.
Mary Louise Elizabeth Osborne: Our technology care coaches and human centered approach integrates behavioral and physical health and can better identify and engage patients across the acuity spectrum.
Mary Louise Elizabeth Osborne: <unk> whole health plus program drives lower hospitalization in inpatient utilization for Medicare advantage plan partners membership.
Mary Louise Elizabeth Osborne: Together, the commercial and self-insured group expansions represent more than a 6.5X increase and a number of Sentara Health Plan members eligible for the Ontrak Whole Health Plus program. We have already begun to outreach to and engage individuals identified in the expansions with unaddressed anxiety. Pression, Substance Use Disorder, and Underlying Chronic Diseases for Personalized Care Coaching, and I'm happy to answer any questions that you may have, and Provide Prompt Access to Behavioral Health Providers When Needed.
Mary Louise Elizabeth Osborne: A program of continuous mental health assessments has also proven to improve health outcomes of untracked help members and increase engagement.
Mary Louise Elizabeth Osborne: <unk>, which can contribute to the improvement in quality scores of health plan partners.
Mary Louise Elizabeth Osborne: These quality scores are critical to maintaining or increasing our plan star ratings, which is a key driver of membership growth.
Mary Louise Elizabeth Osborne: <unk> whole health plus program is more important than ever and will.
Mary Louise Elizabeth Osborne: And very well aligned to help solve for these macro issues that Medicare advantage plans are facing today by delivering proven health outcomes and reducing costs, while also increasing engagement leading to increased quality scores.
Mary Louise Elizabeth Osborne: In addition, we are in discussions with Centauri to further expand Whole Health Plus and Ontrak Engage to a new line of business. These expansions and strong partnership illustrate the trust that Sentara has placed in Ontrak and serve as a testament to the five-year relationship we have built together, achieving clinical and financial outcomes and effectively serving members with behavioral health conditions. Finally, the sales pipeline remains strong and growing, with approximately 26 active prospects representing 15 million members across all lines of business.
Mary Louise Elizabeth Osborne: We are confident in our value proposition to health plan partners and are seeing continued demand in our recent customer expansions and further progress in our pipeline as a result.
Mary Louise Elizabeth Osborne: Finally, we are pleased to have successfully completed our latest round of structured financing that James will highlight in a few minutes.
Mary Louise Elizabeth Osborne: This funding provides us with additional runway to finance and execute our growth initiatives and reflects underlying confidence among our largest investors in our pipeline and prospects.
Mary Louise Elizabeth Osborne: These encouraging developments include a new signature sales momentum clinical outcomes and technological enhancements underscores the strength of our strategy the power of our product our dedication to our customers and members and the hard work of all of our employees.
Mary Louise Elizabeth Osborne: We are happy with our progress in executing a new logo with a prominent Medicaid health plan, Community Care Plan, as well as our multiple executed expansions with Centara Health. We look forward to welcoming our new customers with great excitement as we build these relationships serving new populations across multiple lines of business, serving members in need of behavioral health support, care, and treatment. Now, I'd like to turn the call over to our Chief Financial Officer, James Park.
Speaker Change: Now I will pass it over to Mary Lou Osborn, who will provide further insight into our new customer and other exciting developments in our pipeline.
Speaker Change: Thank you Brandon.
Speaker Change: I am thrilled to provide a few updates on our new Medicaid health plan customer.
Speaker Change: And we discussed in our last earnings call.
Speaker Change: It is our privilege to be working with community care plan.
Speaker Change: A provider service network plan located in South, Florida owned by large respected hospitals Memorial health care system and Broward health.
Speaker Change: We are happy to share that on tract Health has received Florida state approval from the Florida Agency for Health Care Administration.
James J. Park: During the fourth quarter, we recorded revenue of $3.5 million, a 41% year-over-year increase due primarily to a 50% increase in total average enrolled members during the fourth quarter of 2023 compared to the same period in 2022. At the beginning of the quarter, we had 2,297 enrolled members and ended with 1,758 at the end of the quarter for a simple average of 2,029. That equates to revenue of about $546 per health plan enrolled member per month for the quarter, a small decrease from $552 per health plan enrolled member per month in Q3 of 2023 and an increase from $539 in Q4 of 2022, regarding our Q4 number metric.
Speaker Change: To partner with community care plan, providing behavioral health solution for adult members, aged 18 years and above.
Speaker Change: Beyond tract health and community care teams are diligently working on the implementation plan.
Speaker Change: We anticipate a go live date within the next 30 days.
Speaker Change: As we have reported in our last earnings call contract will be offering several of our behavioral health solutions to community care plans adult membership.
Speaker Change: Including whole health plus on track engage contract access and additional quality support for heated measures as well as a member portal.
Speaker Change: In addition to this.
Exciting contract when we are in the final contracting stages with two other prominent health plans representing over 2 million lives.
Speaker Change: Across all lines of business.
Speaker Change: Both health plans are interested in beginning a pilot partnership.
James J. Park: We enrolled a total of 654 members during the quarter, compared to 1,272 in Q3 of this year and 754 in Q4 of 2022. Dividing Q4 gross enrollments by our outreach pool, which averaged 4,131 for the quarter, it annualizes to a 63% enrollment rate, compared to 50% enrollment rate in Q3 of 2023 and 66% in Q4 of 2022. Our average monthly disenrollment rate was 16% in the current quarter, compared to 11% in both Q3 of 2023 and Q4 of 2022.
Speaker Change: One for Medicare advantage members any other for Medicaid members. Both health plans have stated when clinical and financial outcomes are proven.
Speaker Change: There is an intent to expand to a larger membership cohort.
Speaker Change: And across other lines of business.
Speaker Change: Also I'm delighted to share that we have expanded our behavioral health product offerings to one of our longstanding health plan partners.
Speaker Change: And Tara health.
Speaker Change: The expanded partnership recently signed includes offering whole health plus to a broader commercial population.
Speaker Change: Well as to self insured groups.
Speaker Change: Together, the commercial and self insured group expansion represent more than a six five ex increase.
Speaker Change: And the number of Sentara health plan members eligible for the on track whole health plus program.
Speaker Change: We have already begun to outreach and engage individuals identified any expansions with unaddressed anxiety.
James J. Park: The disenrollment rate was higher in the current quarter due to a significant number of members losing coverage due to Medicaid redetermination. Without the impact of these members, our disenrollment rate for the quarter would have been slightly lower than historical disenrollment. In addition, we graduated 194 enrolled members during the quarter. This equates to about 8% of the enrolled members in the program at the beginning of the quarter, which is consistent with prior periods. The impact of all this was a net enrollment decrease of 539 members in the fourth quarter.
Speaker Change: Depression substance use disorder, and underlying chronic diseases for personalized care coaching.
Speaker Change: And prompt access to behavioral health providers when needed.
Speaker Change: In addition, we are in discussions with Centaur to further expand <unk> plus.
Speaker Change: And on track engaged to a new line of business. These expansions and strong partnership illustrates the trust that Sentara has placed in on track.
Speaker Change: <unk> serves as a testament to the five year relationship we have built together, achieving clinical and financial outcomes and effectively serving members with behavioral health conditions.
Speaker Change: Finally, the sales pipeline remains strong and growing.
Speaker Change: With approximately 26 active prospects, representing 15 million members across all lines of business.
James J. Park: Our gross margin for the fourth quarter was 64.6%, which decreased from 72% in Q3 of 2023 and increased from 61.2% in the fourth quarter of last year. The decrease in our gross margin in Q4 2023 compared to Q3 23 was due to an increase in our cost of revenue, primarily relating to the increase in member-facing departments at the end of Q3. The increase in our growth margin compared to the prior year was primarily due to the continued operational efficiencies in our member-facing teams with the utilization of various AI and other systems and process improvements we discussed earlier and in prior quarters. Our coaching capacity has now improved by over 90% since last year when we began to implement these initiatives, all while continuing to provide the quality of care our members and customers need.
Speaker Change: We are happy with our progress of executing our new logo with a prominent Medicaid health plan.
Speaker Change: Any care plan as well as our multiple executed expansions with Centaur Hal.
Speaker Change: We look forward to welcoming our new customers with great excitement.
Speaker Change: As we build these relationships serving new populations across multiple lines of business.
Speaker Change: Serving members in need of behavioral health support care and treatment.
Speaker Change: Now I'd like to turn the call over to our Chief Financial Officer.
Speaker Change: <unk> Park.
Park: Thanks, Mary Lou.
Park: During the fourth quarter, we recorded revenue.
Park: $5 million with 41% year over year increase.
Park: 2% to 50% increase in portal Roberts enrolled members during the fourth quarter of 2023 compared to the same period in 2022.
Park: At the beginning of the quarter, we had 2297 enrolled members and ended with 1758 at the end of the quarter.
Park: <unk> average of 2028.
Park: That equates to revenue of about $546 per home and enrolled member per month for the quarter, a small decrease from $552.
Park: Planned enrolled number per month in Q3 of.
Speaker Change: We agree.
Speaker Change: Increased from $539 in Q4 two.
Speaker Change: Regarding our Q4 member metrics, we enrolled a total of 654 remember during the quarter compared to 1272 in Q3 of this year and 754 in Q2.
Speaker Change: Regarding Q4 gross enrollments for our outreach pool, which averaged 4131 for the quarter.
Speaker Change: Otherwise this 263% enrollment vary compared to 50% enrollment rate in Q3 of 2023 and 66% in Q2.
Speaker Change: Our average monthly this enrollment rate was 16% of the current quarter compared to 11% in both Q3 of two.
Speaker Change: 2023 in Q4.
Speaker Change: Sure.
Speaker Change: But this enrollment rate was higher in the current quarter I'd be curious and number of members moving covers.
Speaker Change: Medicaid Redetermination.
Speaker Change: Without the impact of these members or this enrollment rate for the quarter would have been slightly lower than historical this enrollment rates.
Speaker Change: Further we graduated to a 194 enrolled members during the quarter.
James J. Park: Turning to the balance sheet and cash flow, our cash flow from operations in the 4th quarter was negative $3.6 million compared to negative $1.4 million in the 4th quarter last year and negative $1.8 million in Q3 of 2022. This resulted in our average monthly cash burn to be about $1.3 million per month for the full year 2023.
Speaker Change: So about 8% of enrolled members in the program at the beginning of the quarter, which was consistent with prior periods.
Speaker Change: The impact of all this was a net enrollment decrease of 539 members.
Speaker Change: Fourth quarter.
Speaker Change: Our gross margin for the fourth quarter was 64, 6%, which decreased from 72% in Q3.
Speaker Change: An increase of 61, 2% of the fourth quarter of last year.
Speaker Change: From a gross margin in Q4 compared to Q3.
Speaker Change: It was due to an increase in our cost of revenue primarily relating to the increase of member facing departments at the end of Q3.
Speaker Change: The increase in our gross margin compared to prior year was primarily due to the continued operational efficiencies in our member facing teams.
Speaker Change: Utilization of iron ore system.
James J. Park: We believe our operational efficiencies and anticipated revenues from the process that Mary Lou mentioned have us approaching cash flow positivity in the near future. We ended the quarter with cash and cash equivalents of $9.7 million, up from $3.2 million at the end of the last quarter. There was no restricted cash as of December 31st, 2023.
Speaker Change: System and process improvement as discussed earlier.
Speaker Change: And in prior quarters.
Speaker Change: Our coating capacity has now improved by over 90%.
Speaker Change: After when we began to implement these initiatives all while continuing to provide the quality of care our members and customers.
Speaker Change: Turning to the balance sheet and cash flow our cash flow.
Speaker Change: From operations in the fourth quarter was negative $6 million compared to negative $1 $4 million in the fourth quarter last year and negative $1 $8 million in Q3 of 2023.
Speaker Change: This resulted in our average monthly cash burn could be about $1 3 million.
Speaker Change: Per month for the full year 2023.
Speaker Change: We believe our operational efficiencies and anticipated revenues from the appropriate primary Lou mentioned, how those are putting cash flow positivity in the near future.
James J. Park: However, including restricted cash at the end of Q3, 2023, the total cash was $9.2 million at the end of the quarter. As previously announced, in December of 2023, we completed a public offering of $6.3 million before offering related fees, concurrent with a private placement converting all but 2 million of our people all noted to common equity. Additionally, in March 2024, we completed an amendment to the Keith-Lowe agreement that gave us access to a $15 million Senior Secure Demand Note, which is set up as monthly drawdowns over the next year and subject to approval at the time of the draw.
Speaker Change: We ended the quarter with cash and cash equivalents of $9 $7 million up from $3 $2 million up there in the last quarter.
Speaker Change: There was no restricted cash or both December 31.
Speaker Change: We agree however.
Speaker Change: However, including restricted cash at the end of Q3.
Speaker Change: The total capital of $9 2 million at the end of the quarter.
Speaker Change: As previously announced in December of 2023.
Speaker Change: <unk> at a public offering of $6 $3 million before offering related fees.
Speaker Change: With a private placement converting all of that $2 million of our people in order to common equity.
Speaker Change: Additionally in March 2024, we completed an amendment to the <unk> program and that gives us access to.
Speaker Change: $13 million senior secured the mandate, which is set up our multi draw downs over the next year.
Speaker Change: <unk> approval effort carnival's withdrawal.
James J. Park: These financing transactions have provided us with the additional capital needed to execute upon our pipeline while significantly reducing our debt obligation and improving our balance. They serve as a testament to our ability to execute and validation of Ontrak's evolving business. Also, in addition to the $1.5 million we have already drawn down in April on the New Keep Well Amendment, we also received tax proceeds of $1.9 million from the exercise of warrants during March and April, which continue to build our capital to execute on a pipeline.
Speaker Change: These Brian housing transactions have provided us with the additional capital needed to execute upon our pipeline, while significantly reducing our debt obligation and improving our balance sheet.
Speaker Change: They serve as a testament to our ability to execute and validation of an evolving.
Speaker Change: Also in addition to the one <unk> we are already drawn down in April.
Speaker Change: Willow Amendment.
Speaker Change: We also received cash proceeds of $149 million.
Speaker Change: The exercise of warrants during March and April, which continue to build our capital to execute on our pipeline.
James J. Park: While we can't predict if and when the remaining warrants will be exercised, the total amount of warrants at their exercise price would equate to an additional $16 million in cash once the newly issued warrants with the current reset provisions have been registered. We will not be providing annual guidance at this point. For Q1 2024, we anticipate revenue in the range of $2.5 million and $2.9 million. Now we will open up to questions.
Speaker Change: While we can't predict if and when the remaining warrants will be exercised.
Speaker Change: Total amount of warrant after expert.
Speaker Change: Would equate to the $360 million.
Speaker Change: Okay.
Speaker Change: Newly issued warrants with the current reset provision property registered.
Speaker Change: We will not be providing annual guidance at this point.
Speaker Change: Tier one and 2044.
Speaker Change: We anticipate revenue in the range of $2 <unk> $2 $9 million.
Speaker Change: Now we will open up for questions.
Operator: Thank you. Please stand by while we compile the Q&A roster.
Speaker Change: Thank you please standby, while we compile the Q&A roster.
Operator: Our first question comes from the line of Jonathan Aschoff of Roth MKM. Your question, please, Jonathan. Thank you. You know, guys, what does the...
Speaker Change: Our first question comes from the line of John.
Speaker Change: Jonathan Aschoff of Roth <unk> Your question please Jonathan.
Jonathan Matthew Aschoff: Thank you guys.
Jonathan Matthew Aschoff: What does the new Florida Agency for Healthcare Administration Award.
Brandon H. LaVerne: Thank you. You know, guys, what does the new Florida Agency for Healthcare Administration Award mean for your new customer? And, you know, what might be the timeline for it to translate into increased revenue for Ontrak?
Jonathan Matthew Aschoff: I mean for your new customer and what might be the timeline for it to translate into increased revenue we're on track.
Speaker Change: They really do want to take that.
Jonathan Matthew Aschoff: So.
Jonathan Matthew Aschoff: The Florida.
Jonathan Matthew Aschoff: Nancy.
Brandon H. LaVerne: So the Florida agency approved, that's ACA, and that agency approves all health plan vendors that health plans want to work with in Florida. So it's terrific news that we've been approved. That also means any additional Florida customers we would bring forward have already been through the Florida agency approval process.
Speaker Change: That's acre and that agency approves.
Speaker Change: <unk> health plan vendors that.
Speaker Change: That health plans want to work with in Florida. So it's terrific news that we've been approved.
Speaker Change: That also means any additional Florida customers, we would bring forward have already been through the Florida agency approval process.
Brandon H. LaVerne: Does that answer your question? Yes. Thank you. Thank you.
Speaker Change: Does that answer your question.
Speaker Change: Yes.
James J. Park: How much more negative financial impact is expected from any additional Medicaid disenrollment?
Speaker Change: Next one is how much more financial impact is negative financial impact is expected for many additional Medicaid disinvolvement.
Brandon H. LaVerne: I think from what we've seen so far, the bulk of the impact has already been there. We definitely saw an impact in the fourth quarter, as Dan said, indicated in our disenrollments. You know, it's not entirely done yet, but from everything we've seen, it's definitely slowed, and so don't expect a significant portion going forward.
Speaker Change: I think from what we've seen so far is the bulk of the impact is.
Speaker Change: Then there was definitely saw an impact in the fourth quarter as <unk> indicated in our dis enrollments.
Speaker Change: It's not entirely done yet, but from everything we've seen has definitely slowed.
Speaker Change: And so don't expect a significant portion going forward.
Brandon H. LaVerne: Okay, um, could you please explain, you know, a bit clearer than the March 21 press release about, you know, the advanced engagement system? What does it allow you to do that you could not do before?
Speaker Change: Okay.
Speaker Change: Could you please explain a bit clearer than the March 'twenty, one press release.
Speaker Change: Okay.
Speaker Change: Vince engagement system what.
Speaker Change: Does it allow you to do that you could not do before implementing it.
Brandon H. LaVerne: It's really putting together a lot of components that are bringing AI in and around our entire journey of our members. And so, you know, when we think a couple years ago, our members were, you know, predominantly talking to us on the phone, our coaches, we would be serving members into treatment, communicating, you know, offline necessarily with providers.
Speaker Change: It's really putting together a lot of components that are that are bringing AI in and around our entire the entire journey of our members and so when we think a couple of years ago.
Speaker Change: Our members were.
Speaker Change: Predominantly.
Speaker Change: Talking to us on the phone our coaches we would be.
Speaker Change: Serving members into the treatments communicating.
Speaker Change: Offline necessarily with providers and now we have the ability to we have the upfront ability to identify members. We've expanded that capability, we've expanded the timeline and the processing speed at which we can process that information.
Brandon H. LaVerne: And now we have the ability to, you know, we've had the upfront ability to identify members. We've expanded that capability. We've expanded the timeline and the processing speed at which we can process that information. We're serving up a lot more information to our coaches so that they have an understanding of what those next best actions are for the members, whereas before, it was, you know, reading through a bunch of notes. These notes are now also being driven through the AI.
Speaker Change: We're serving up a lot more information to our coaches.
Speaker Change: So they have an understanding of what those next best actions are for the members that before it was.
Speaker Change: Read through a bunch of notes.
Speaker Change: These notes now are also being.
Speaker Change: Driven through the AI and so the coach rather than following up a meeting and having to spend 15 to 2030 minutes to document what happened is that process is happening contemporaneously with the AI, which frees up these coaches to serve more members.
Brandon H. LaVerne: And so the coach, rather than following up a meeting and having to spend 15, 20, 30 minutes documenting what happened, that process is happening contemporaneously with the AI, which frees up these coaches to serve more members. And so that's not only about efficiency, but it's also in support of, you know, incremental membership work. And so, just expanding, you know, with, you know, more assessments, our virtual assistants can now engage with our members and create interactions in between coaching visits and in between provider visits; they can help follow up and and work on timing and reminders, which helps keep people in care and treatment.
Speaker Change: And so that's not only in efficiency, but it's also in support of incremental membership.
Speaker Change: Work.
Speaker Change: And so then just expanding.
Speaker Change: <unk>.
Speaker Change: More assessments are virtual assistance.
Speaker Change: <unk> can now.
Speaker Change: Engage with our members and create interactions in between coaching visits and in between provider visits.
Speaker Change: Can help follow up and work on timing and reminders, which helps keep people in care and treatment.
Brandon H. LaVerne: And which in turn helps keep the members engaged, and engagement is really, you know, most important at this point to make sure that these members can stay on their journey, stay maintaining their treatment plans and within the program, and then ultimately, you know, serving and reducing their costs and improving their health.
Speaker Change: And in which in turn helps keep the members engaged and engagement is really most important at this point.
Speaker Change: To make sure that these numbers can stay on their journey today.
Speaker Change: Maintaining their treatment plans and within the onsite program, and then ultimately serving and reducing their cost and improving their health.
Brandon H. LaVerne: Okay. And lastly, you know, is the winding down of using your services by the customer that left in February of 2024 the overwhelming reason why the revenue in the fourth quarter dropped quarter over quarter? Yes, that's correct, and Jonathan Aschoff, Brandon LaVerne, James Park, Mary Osborne, Ontrak, and
Speaker Change: Okay, and lastly is the winding down of using your services by the customer that left in February of 2024. The overwhelming reason why the revenue in the fourth quarter dropped quarter over quarter.
Speaker Change: Yes, that's correct.
Speaker Change: No.
Speaker Change: Slight larger impact is going to be.
Speaker Change: The Redetermination that was also Canada.
Brandon H. LaVerne: Yes, that's correct. Now, the slight larger impact is going to be.
Speaker Change: Okay. Thank you very much.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Thank you. Thank you.
Brandon H. LaVerne: The League for Determination, but I was also a part of that.
Speaker Change: I would now like to turn the conference back to Brandon Laverne for closing remarks, Sir.
Brandon H. LaVerne: I would now like to turn the conference back to Brandon LaVerne for his closing remarks, sir.
Brandon H. LaVerne: Alright, Thank you Latif.
Brandon H. LaVerne: We'd like to thank everyone for participating on our call today and wish you all great. Thank you.
Brandon H. LaVerne: I would like to thank everyone for participating in our call today, and I wish you all a great afternoon. Thank you.
Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.
Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect.