Ontrak Down 49% on Loss of Aetna Contract
By Josh Beckerman
Ontrak Inc. shares were recently down 49% to $30.31 as the
company said its largest customer is terminating its participation
status effective June 26.
Benchmark Research, which identified the customer as Aetna, said
its rating and price target are under review.
The Ontrak platform helps treat health plan members with
unaddressed behavioral health conditions that cause or exacerbate
diseases such as diabetes, hypertension and coronary artery
The company said "the relationship with our Ontrak-A customer
was unique, because they evaluated Ontrak on a provider basis, not
as a vendor as do all of our other health plan partners. As such,
the customer evaluated our performance based on our ability to
achieve the lowest possible cost per medical visit, and not on our
clinical outcomes data or medical cost savings, which were
meaningful and significant."
Ontrak said "unlike our other health plan partners, we
interacted only with the behavioral health division, with no
involvement from the medical division of the plan."
Ontrak said "we are proud of the fourth-quarter expansions we
have made with our other existing health plans and recently signed
contract renewals with current customers." The company said
fourth-quarter revenue was $29.3 million, up 149%.
RBC Capital downgraded Ontrak to sector perform from outperform
and reduced its price target to $32 from $82.
Write to Josh Beckerman at email@example.com
(END) Dow Jones Newswires
March 01, 2021 13:27 ET (18:27 GMT)
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