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Last updated on May 30, 2012 at 0:10 EDT

Healthways, Community Health Group of San Diego Sign 3-Year Deal for Medi-Cal High Risk Care Management

January 30, 2007
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Healthways, Inc. (NASDAQ: HWAY) and Community Health Group of San Diego today announced a three-year agreement to provide Healthways’ industry-leading Care SupportSM services to select Community Health Group members. The agreement marks Healthways’ eighth contract to provide services within the Medicaid population and reflects the company’s continued commitment to delivering proven Health and Care SupportSM solutions tailored to the unique needs of Medicaid, Medicare, Medicare Advantage and other government health plan members.

“Community Health Group believes in delivering quality customer service, coordinating exceptional quality medical care and creating positive relationships with its health care partners in the community,” said Community Health Group CEO Norma Diaz. “We believe that member care and the delivery of care happen one patient at a time. Being local enables our staff to be more directly involved with our physicians, clinics, members and ancillary providers. Our dedication to service is a key factor in our selection of business partners and bringing value added to our members is important.”

The agreement, which begins March 1, 2007, will provide high risk care management services to Community Health Group members with diabetes or heart disease along with a specific need for intensive interventions. Healthways’ high risk care management solution provides intensive one-on-one telephonic support that empowers members to become active participants in the management of their conditions. The contract brings Healthways total number of covered Medicaid members to more than 60,000. Healthways also provides Care Support services to Medicare members through Medicare Advantage health plans, Medicare Health Support and Healthways Health SupportSM offerings like The SilverSneakers® Fitness Program for older adults.

“Healthways is driven by a deep belief in the power of focused support at the individual level to improve health outcomes and reduce healthcare costs,” said Healthways President and CEO Ben R. Leedle, Jr. “We share Community Health Group’s commitment to improving the health of its members, and we’re pleased that this agreement aligns Healthways’ passion for improving health with our leadership in health and care support solutions for government health plan members.”

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 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 Healthways’ Annual Report on Form 10-K for the fiscal year ended August 31, 2006. Consequently, actual operations and results may differ materially from those expressed in these forward-looking statements. Healthways undertakes no obligation to update or revise any such forward-looking statements.

About Community Health Group of San Diego

Community Health Group, which is located in Chula Vista, California, is a non-profit Knox-Keene licensed Health Care Service Plan that operates in San Diego and southern portions of Riverside Counties and is accredited by the National Committee for Quality Assurance (NCQA). This year marks 25 years of business for Community Health Group, which serves more than 95,000 members and is dedicated to serving underserved populations. Community Health Group serves Medi-Cal and Healthy Families members and operates a Third Party Administrators operation. Community Health Group has the largest market share for San Diego County for both Medi-Cal and Healthy Families products. True to its non-profit mission, Community Health Group is dedicated to promoting, achieving and sustaining individual and community health while providing quality care in a culturally competent manner.

About Healthways

Healthways is the leading provider of specialized, comprehensive Health and Care SupportSM solutions to help millions of people maintain or improve their health and, as a result, reduce overall healthcare costs. Healthways’ programs are designed to help healthy individuals stay healthy, mitigate and slow the progression of disease associated with family or lifestyle risk factors and promote the best possible health for those already affected by disease. Our proven, evidence-based programs provide highly specific and personalized interventions for each individual in a population, irrespective of age or health status, and are delivered to consumers by phone, mail, internet and face-to-face interactions, both domestically and internationally. Healthways also provides a national, fully accredited complementary and alternative Health Provider Network, offering convenient access to individuals who seek health services outside of, and in conjunction with, the traditional healthcare system. For more information, please visit www.healthways.com.