Behavioral health and wellness prediction company Catasys has inked a deal with banking firm Goldman Sachs to secure $45 million in debt financing.
WHAT THEY DO
Catasys uses artificial intelligence and data analytics to pinpoint health plan members who may have a behavioral health condition. The idea is to catch untreated mental illness before the issue becomes worse. The system then works on linking patients to services.
It also provides a treatment program, dubbed OnTrak, which includes both virtual and in-person services.
WHAT IT’S FOR
The new infusion of cash will be put towards retiring its existing credit facilities and growing its technology. In particular, the company plans to expand on its platform Catasys PRE, which predicts disease and behavior changes.
“Given current and anticipated growth of eligible members of our outreach pool, we anticipate the proceeds from this financing will enable Catasys to achieve positive cash flow as we continue working to execute on our program and platform expansions and technological advancements in the remainder of 2019 and beyond," Terren Peizer, chairman and CEO of Catasys, said in a statement. "Given our capital-light model, we remain optimistic that our growth can be funded by access to additional debt capital, if necessary, and internally generated cash flow.”
Predictive analytics company have been emerging in the market in recent years. In February KenSci, maker of a risk prediction platform for healthcare, closed a $22 million Series B funding round.
Even some of the biggest names in Silicon Valley are jumping into the game. This year the US Patent and Trademark Office published a Google patent application that revealed some details on a predictive EHR system. The proposed system can aggregate and store EHRs for a diverse population, while compiling each individual patient’s records into a single chronological document.