Situation Audit

This is a report about the behavioral health care organization I work for called OnTrak, Inc, but at this time only steps 7 (critical resources) and 8 (leadership, governance, and management) need to be completed. Each step has to be 2-3 pages long, APA format, in-text citation included, and references. There’s no certain amount of resources that have to be cited. I have attached a sample of the report provided by my professor. The sample is not my paper and it was just provided by my professor for assistance. The highlighted sections are 7 & 8. I have also attached instructions and references. Some references I have used in the previous steps of the assignment and some I have not used. The ones I have not used are included in the reference list of the sample report & would be helpful, especially when defining terms, shown in the example. I have also included some other material, which are resources, etc mentioned in the instructions.

ANSWER

Ontrak Inc.

Introduction

Ontrak is a program that identifies, treats, engages, and activates people with unresolved health problems that cause or exacerbate the chronic disease. Ontrak programs significantly improve health outcomes and reduce medical costs by 40% or more. Their proven solution provides members with regular virtual and telemedicine care coaching and face-to-face visits from health care providers, leveraging local resources to support the social determinants of health. In crucial clinical value criteria, Ontrak far outperforms its competitors, achieving higher awareness rates, program enrolment rates, and graduation rates, as well as higher NPS scores for members – in other words, Ontrak works. This paper examines Ontrak’s core resources, governance, and leadership.

Body

Critical resources

Human Resources.

Human resources include all full-time and part-time employees currently employed by Ontrak.  The current payroll was very useful in determining the number of employees. A comparison was also used, which is still common. Ontrak’s direct or indirect competition by the number of employees was analysed by its auditors to find undervalued stocks with similar characteristics or reserves that could be an excellent addition to the portfolio. Ontrak benchmarking is also used for relative valuation, where Ontrak is evaluated by comparing valuation multiples of similar companies (Fusari et al., 2020).  According to recent financial reports, Ontrak currently has 723 employees; this is 93.43% less than other healthcare organizations. However, this number is significantly higher than the healthcare industry. Compared to listed companies, Ontrak has significantly fewer employees; US-listed companies have 96.16% more employees than Ontrak. At Ontrak, most employees can work from home, which is an advantage (de Greeff, & Shennan, 2020). Most employees believe the work environment, team, and work-life balance are excellent. Some employees say they like having an employee-focused and trying to help others.

Financial Resources

Ontrak has had negative cash flow since inception, has devoted significant resources to grow, and plans to continue to do so in the future. Ontrak may require additional financing before its cash flow becomes cash flow positive, and Ontrak May never become cash flow positive. In addition, given the Company’s current valuation, raising additional funds by issuing shares may further dilute shareholders (de Greeff, & Shennan, 2020). The shares issued may also provide more benefits, privileges, or rights than those enjoyed by holders of ordinary shares. Ontrak raises funds through the issuance of debt securities, which have more rights, freedoms, and benefits than those enjoyed by holders of Ontrak’s common shares. The terms of the debt securities may impose significant restrictions on the Company’s operations beyond those described above.

Ontrak have registered a positive growth in its sales per revenue since 2016. In 2016 the sales per revenue was $ 7.08M while in 2020 it had hit 82.84M. Sales growth increased from 9.07% in 2017 to 136.04% in 2020. Another factor which was considered in the financial evaluation was Gross Income Growth which increased from 249.07% in 2018 to 167.13% in 2020. In 2017 the gross income growth was negative at -52.30%.  Pre-tax Income Growth was 24.14% in 2017, however, it registered negative figures in 2018 and 2019 at -4.50%, -80.56% respectively (Fusari et al., 2020). In 2020 the Pre-tax Income recorded a positive growth at 8.98%. Gross income and Net income also recorded positive growth between the years 2016 and 2020 while preferred dividends stood at $1.99M in 2020.

Informational resources.

Ontrak was incorporated in Delaware on September 29, 2003. Ontrak is based at 2120 Colorado Ave, Suite 230, Santa Monica, CA 90404, and its telephone number is (310) 444-4300. www.catasys.com  is the official website address for Ontrak. The Company’s Annual Reports, Quarterly reports, Current Reports, and amendments to those reports filed according to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934. The Reports are available free of charge at the Company’s website as soon as practicable after the Company has filed such documents electronically or furnished them to the Securities and Exchange Commission (Fusari et al., 2020).. Also, the SEC maintains a website that contains Ontrak’s public filings with the SEC and other information about the Company. The contents of these sites are not reproduced in the annual reports. In addition, the Company’s links to the URLs of these sites are passive text links only.

Leadership governance and management

Board of Directors.

Terren S. Peyser is the founder, president, and chief executive officer of the Company. Terren is an entrepreneur, investor, and financier with a particular interest in the medical industry. He is the founder of Ontrak, Inc. and has served as Chairman of the Board since its inception in 2004. Jonathan Mayhew is the Chief Executive Officer of Ontrak, Inc. Jonathan oversees all aspects of Ontrak’s operations (Rash et al., 2017). He joined the Company in 2021 from CVS, where he served as Chief Transformation Officer. The Chief Medical Officer is Dr. Julia Wright. Julia leads clinical research and new product development. She joined Ontrak in 2019 with over two decades of health systems leadership experience and a deep understanding of how to use data to improve the quality of evidence-based care. Other board members are Brandon H. LaVerne, chief financial officer, and Robert Newton, chief operating officer, and secretary.

Functions of the Board of Directors.

Ontrak’s management maintains a positive and relaxed business climate within the Company, which helps the company better manage its operations. To ensure maximum employee productivity, Ontrak’s administration has offered various incentives such as working from home, making work more flexible and convenient (Lisciandro, & Gibbs 2016). In addition, employees feel an integral part of the organization because they can continue to participate in many decision-making processes. Amtrak’s management has also ensured best practices and maximum supervision. They have also provided a wide range of training to their employees, ensuring a high-quality workforce at all times.

Committee Charters

The Board of Directors of Ontrak, Inc. has established several committees to assist it in carrying out its responsibilities. These include the Audit Committee, the Compensation Committee, and the Nominating and Corporate Governance Committee. The board of directors has adopted written charters for each of these committees (Lisciandro, & Gibbs 2016). The Audit Committee comprises three directors, Richard A. Berman, Richard J. Berman, and Diane Seloff, with Richard A. Berman serving as Chairman of the Audit Committee. The Board of Directors has determined that each member of the Audit Committee is independent under NASDAQ rules. The Audit Committee’s responsibilities include (a) reviewing the audit plan and its scope, (b) selecting, evaluating and, if necessary, replacing an independent registered public accounting firm, (c) reviewing significant deficiencies or material weaknesses in significant accounting policies, the design or operation of internal controls and significant changes in internal controls, and (d) following up on audit matters.

The Nominating and Corporate Governance Committee are consisting of three members, Mr. Sherman, Mr. Berman, and Mr. Gabrielson, independent under NASDAQ rules.  Mr. Sherman chairs the Corporate Governance and Nominating Committee. The committee nominates new directors and regularly monitors corporate governance matters. The compensation committee currently consists of three members, Michael Sherman, Richard J. Berman, and Edward Zecchini, independent under NASDAQ rules (Rash et al., 2017). Mr. Sherman is the chairman of the compensation committee. The Compensation Committee is responsible for reviewing and recommending to the Board of Director’s approval of the compensation of the Company’s executive officers.

Conclusion

In conclusion, the paper above has discussed in detail the critical resources of Ontrak, including human resources, financial resources, and informational resources. Moreover, leadership governance and management are as well discussed. The administration has had a positive impact on the Company through its well-structured leadership and governance.

References

De Greeff, A., & Shennan, A. H. (2020). Validation of the Spacelabs 90227 OnTrak device according to the European and British Hypertension Societies as well as the American protocols. Blood pressure monitoring, 25(2), 110-114.

Fusari, G., Gibbs, E., Hoskin, L., Dickens, D., Leis, M., Taylor, E., & Darzi, A. (2020). Protocol for a feasibility study of OnTrack: a digital system for upper limb rehabilitation after stroke. BMJ open, 10(3), e034936.

Lisciandro, J. G., & Gibbs, G. (2016). ‘OnTrack’to University: Understanding mechanisms of student retention in an Australian pre-university enabling program. Australian Journal of Adult Learning, 56(2), 198-224.

Rash, C. J., Alessi, S. M., & Petry, N. M. (2017). Substance abuse treatment patients in housing programs respond to contingency management interventions. Journal of substance abuse treatment, 72, 97-102.