American Healthways, Saint Mary's Health Plans Expand Relationship

    Business Editors/Health/Medical Writers

    NASHVILLE, Tenn.--(BUSINESS WIRE)--Feb. 16, 2005--Building on four years of successful initiatives with diabetes and cardiac members, Saint Mary's Health Plans of Reno, Nevada, has deepened its relationship with American Healthways, Inc. (NASDAQ:AMHC), signing a new four-year agreement to provide disease management programs to both fully insured members of its HealthFirst HMO plan and its roster of self insured employer groups.
    Under the new agreement, Saint Mary's will add disease management programs for chronic obstructive pulmonary disease (COPD), asthma and 11 impact conditions, which include illnesses such as low back pain. The new contract also includes American Healthways' StatusOne high-risk health management program. Additionally, Saint Mary's will make American Healthways' diabetes and cardiac programs available to its self-insured line of business.
    "We believe in disease management and its ability to improve the health of our members," said Don Kowitz, chief operating officer for Saint Mary's Health Plans. "We've seen these programs make a significant difference in the lives of our members with diabetes and cardiac conditions, and we felt compelled to expand the reach of what we were doing."
    Saint Mary's insures approximately 32,000 members. It began its relationship with American Healthways in October of 2000, initially contracting for the Company's diabetes program. Two years later, the heath plan added a cardiac program. Both have generated positive outcomes.

    Outcomes for diabetes and cardiac programs

    After compiling three years of outcomes for its diabetes program, Saint Mary's found significant improvements in clinical, utilization and financial results compared to the baseline year before the programs were implemented. The results for the diabetes program included increases in the percentage of members adhering to specific standards of care (at least one A1C test, an LDL test, a microalbumin test, and a dilated retinal eye exam) per year.
    Additionally, Saint Mary's has recorded first year outcomes for the cardiac program that demonstrate similar success, including an increase in the percentage of members with at least one LDL test and the percentage of members diagnosed with heart failure who are taking an ACE Inhibitor.
    In both the diabetes and cardiac programs, there have been significant decreases in hospital admissions, emergency room visits and total medical costs.
    "Saint Mary's focus on providing quality health care services, anticipating medical trends and growing in new directions is squarely aligned with the intent and outcomes of our programs, and we look forward to building on the success of our relationship to further drive improved health and reduced costs for members within the Saint Mary's system," said Ben Leedle, president and CEO of American Healthways.

    About Saint Mary's Health Plans

    Saint Mary's Health Plans, based in Reno, Nevada, has become a leader in providing health plans and services with the help of the region's best providers. Saint Mary's offers high quality health plan options to local employers through Saint Mary's HealthFirst (HMO), Saint Mary's Preferred Health Insurance Company (PPO), CDS Group Health (TPA), and CDS CompFirst (MCO & TPA).

    About American Healthways

    American Healthways is the nation's leading and largest provider of specialized, comprehensive disease management, care enhancement and high-risk health management services proven to improve the quality of health care and lower costs. As of Nov. 30, 2004, the Company had more than 1.4 million lives under management nationwide. For more information, visit www.americanhealthways.com.

    Safe Harbor Provisions

    This press release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. In order for American Healthways to utilize the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, investors are hereby cautioned that these statements may be affected by the important factors, among others, included in the discussion in Part I, Item 1, and Part II, Item 7, of American Healthways' Annual Report on Form 10-K for the fiscal year ended Aug. 31, 2004, and Part I, Item 2 of American Healthways' Quarterly Report on Form 10-Q for the quarter ended Nov. 30, 2004. Consequently, actual operations and results may differ materially from those expressed in these forward-looking statements. American Healthways undertakes no obligation to update or revise any such forward-looking statements.

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CONTACT: American Healthways, Inc., Nashville Kriste Goad, 615-263-7524 kriste.goad@amhealthways.com

KEYWORD: NEVADA TENNESSEE INDUSTRY KEYWORD: MEDICAL INTERNET E-COMMERCE MARKETING AGREEMENTS SOURCE: American Healthways, Inc.

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