Thursday, June 14, 2018

Catasys Gets $10M In Debt Financing For AI, Healthcare Technology

Los Angeles-based Catasys, a provider of AI- and technology-enabled healthcare services, said today that it has received $10M in a debt financing round, split between a receivable facility agreement of $2.5 million with Heritage Bank of Commerce and a four-year term loan of up to $7.5 million with Horizon Technology Finance Corporation. The publicly held company said it will pay Prime plus 3% on its receivable facility agreement (currently, 7.75%), and an interest rate on the term loan is 9.75% and will float with Libor when north of 2% (currently, 9.10%). The company said the new funding will go towards new contracts and expansions, invest in new technology platforms, and provide excess capital. Catasys says it is using big data predictive analytics, artificial intelligence and telehealth to help improve the health of health plan members, applying that technology to treat the conditions that cause or exacerbate diabetes, hypertension, coronary artery disease, COPD, and congestive heart failure.