American Healthways Expands with HealthSpring into Chicago; Medicare A

    Business Editors/Health/Medical Writers

    NASHVILLE, Tenn.--(BUSINESS WIRE)--March 17, 2005--American Healthways, Inc. (NASDAQ: AMHC) today announced an agreement with HealthSpring of Illinois to join in its foray into the greater Chicago area, bringing together proven partners in a new market with a common goal of improving the health and the quality of life for Medicare Advantage seniors.
    "HealthSpring and American Healthways have collaborated in other markets and made a tremendous difference in the lives of seniors in the HealthSpring Cares program, where nurses work closely with members to help them understand and follow their physician's plan of care, set personal health goals and gain control of their overall health," said Randy K. Fike, president, HealthSpring of Illinois. "We're excited to be able to offer seniors in the greater Chicago area some of the most recognized and respected disease management programs in the country."
    American Healthways has been working with HealthSpring of Tennessee since 2002, and last year expanded into the health plan's Alabama and Texas markets. In each market, American Healthways provides programs for 16 different diseases, focusing on the whole person, not just a single disease.
    "Our relationship with HealthSpring is built on a mutual commitment to improve clinical and financial outcomes, both of which have been achieved to a high level, and we look forward to continuing that success in the Chicago area," said American Healthways President and Chief Executive Officer Ben R. Leedle Jr. "We are excited that our HealthSpring partners will continue to be engaged with us in a strategic way and share our passion for developing innovative approaches to improving health."
    HealthSpring of Illinois is owned by NewQuest, LLC, the Nashville-based parent company of HealthSpring of Tennessee, HealthSpring of Alabama, Texas HealthSpring and HealthSpring of Illinois. HealthSpring is dedicated to improving the health of the community it serves by delivering the highest quality and greatest value in healthcare benefits and services. HealthSpring currently serves over 190,000 commercial and 65,000 Medicare members in four states. For more information, visit www.myhealthspring.com.

    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: TEXAS TENNESSEE ILLINOIS INDUSTRY KEYWORD: INSURANCE CONSUMER/HOUSEHOLD MEDICAL SOURCE: American Healthways, Inc.

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