Collaboration Intended to Establish Texas Health’s Accountable Care Organization as Model for Future Expansions

ARLINGTON, Texas & NASHVILLE, Tenn.--(BUSINESS WIRE)--Jan. 22, 2013-- Texas Health Resources (Texas Health) and Healthways (NASDAQ: HWAY) today provided insight into one aspect of their 10-year strategic agreement to dramatically change not only the way people in North Texas access and receive health care, but also to fundamentally transform the way people think about their “health”. Together, the two organizations will deploy their integrated physician-directed population health solution to drive health outcomes and cost savings through the newly created Texas Health accountable care organization (ACO) developed for a collaboration with Blue Cross and Blue Shield of Texas.

In announcing the formation of the ACO earlier this week, Doug Hawthorne, CEO of Texas Health Resources, said, "This agreement to establish an ACO is another example of the innovative approaches that we believe will lead to truly effective healthcare reform. Texas Health has been advancing the concept of putting more emphasis on keeping people healthy and out of the hospital and developing new programs like this ACO to help employers keep their employees healthy. By creating this ACO, Texas Health is delivering on our promise to collaborate with physicians, payers, employers and other health systems to align the efforts of all of us around what is best for the patient across the entire continuum of care.”

Hawthorne today added, “As we design, finalize and then launch this initial commercial ACO agreement, we have had and will continue to have Healthways engaged as our strategic partner.”

Texas Health and Healthways envision that results should include an increase in the percentage of healthy people; a reduction in per capita health-related risk; lower incidence and prevalence of chronic illness; fewer complications from known chronic disease; lower morbidity; lower utilization of health care services; fewer hospital readmissions; lower medical cost; increased productivity and performance and extended life expectancy. Results such as these are the ultimate objectives of the ACO model. The model also includes rewards to physicians for managing the underlying health and costs of their patient population as they move from the traditional fee-for-service approach to a fee-for-value payment model.

“Risk factors and chronic diseases that drive high medical cost and lost productivity continue to rise at an alarming rate,” noted Healthways CEO, Ben R. Leedle, Jr. “Our alignment with Texas Health is absolute in dealing with these issues. Healthways has led the way in establishing proven tools and the advanced science to deliver a model that improves well-being, which results in significant reduction of health-related costs. We believe that infusing our experience and proven capabilities to improve well-being into Texas Health’s broad array of healthcare professionals, facilities and services - and specifically within the construct of a commercial ACO model - affords a unique opportunity to drive the core of our value proposition: Healthier people cost less and perform better. Texas Health understands that proposition, and we are grateful for the opportunity to be working with such an outstanding partner.”

Texas Health and Healthways expect to collaborate in designing and implementing additional commercial ACO models with other insurers in the North Texas market in the future.

About Healthways

Healthways is the largest independent global provider of well-being improvement solutions. Dedicated to creating a healthier world one person at a time, the Company uses the science of behavior change to produce and measure positive change in well-being for our customers, which include employers, integrated health systems, hospitals, physicians, health plans, communities, and government entities. We provide highly specific and personalized support for each individual and their team of experts to optimize each participant’s health and productivity and to reduce health-related costs. Results are achieved by addressing longitudinal health risks and care needs of everyone in a given population. The Company has scaled its proprietary technology infrastructure and delivery capabilities developed over 30 years and now serves approximately 40 million people on four continents. Learn more at www.healthways.com.

About Texas Health Resources

Texas Health Resources is one of the largest faith-based, nonprofit health systems in the United States. The health system includes 25 acute care and short-stay hospitals that are owned, operated, joint-ventured or affiliated with Texas Health Resources. It includes the Texas Health Presbyterian, Texas Health Arlington Memorial, and Texas Health Harris Methodist hospitals, Huguley Memorial Medical Center, Texas Health Physicians Group, outpatient facilities, behavioral health and home health, preventive and fitness services, and an organization for medical research and education.

For more information about Texas Health Resources, call 1-877-THR-WELL, or visit www.texashealth.org.

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Source: Healthways

Healthways
Chip Wochomurka, 615-614-4493
Director Investor Relations
Chip.Wochomurka@Healthways.com
or
Texas Health Resources
Wendell Watson, 682-236-6963
Director of Public Relations
WendellWatson@TexasHealth.org