URAC Renews Accreditation of American Healthways Programs

NASHVILLE, Tenn.--(BUSINESS WIRE)--Nov. 8, 2004--American Healthways, Inc. (Nasdaq: AMHC) today announced it has received a full, two-year re-accreditation under URAC's Disease Management Organization Standards for programs treating diabetes, congestive heart failure, coronary artery disease and chronic obstructive pulmonary disease. Additionally, URAC granted accreditation for the Company's asthma program.

URAC is one of the nation's most respected, independent health-care accrediting organizations. American Healthways was an early adopter of URAC standards and first received accreditation from the organization in August of 2002.

“Such commitment underscores why there has been seen such rapid growth and widespread success within the disease management industry in recent years.”

"We commend URAC for its role in raising the bar across our industry, and we are proud of our ability to continually live up to its rigorous standards," said Ben R. Leedle Jr., president and CEO of American Healthways. "Our accreditation through URAC demonstrates the consistent high quality of our program design and delivery and should give our health plan customers confidence in the integrity of the programs we're providing."

In addition to a thorough review of program design and procedures, URAC evaluated American Healthways operations in Nashville; St. Louis; Eagan, Minnesota and Kapolei, Hawaii to gain a 50 percent sample of locations where the programs are offered. All four locations were found compliant with the organization's standards.

URAC enlists committees of employers, consumers, providers, regulators and health care organizations to develop its accreditation programs. Its standards are widely circulated for public comment and beta-tested before finalization.

"American Healthways has consistently displayed leadership through a commitment to quality and accountability," said Garry Carneal, URAC president and CEO. "Such commitment underscores why there has been seen such rapid growth and widespread success within the disease management industry in recent years."

URAC is a leader in the accreditation of health and managed care organizations, and continues to develop new standards for health care and revise existing ones to promote national standards and to ensure that all stakeholders, including consumers and providers are protected. URAC has issued over 2,300 accreditation certificates to more than 500 health care programs that provide health care to millions of Americans.

American Healthways' programs are designed to enhance the care experience and reduce the cost of care, employing the principles of evidence-based medicine and recognized standards of care to support the physician's plan of care and help people with chronic and other diseases improve their health. The programs monitor patients' conditions, educate them to become more effective self-managers of their disease and support them in creating and sustaining the behavior changes that result in better health. Advanced technologies also help determine those at high risk of health complications, enabling the provision of preventive interactions that can greatly reduce or avoid costly health-care episodes.

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 August 31, 2004, the Company had more than 1.3 million lives under management nationwide. For more information, visit www.americanhealthways.com.