News Release
January 25, 2011
HMSA and Healthways announce new 10-year agreement
Elisa Yadao
(808) 948-6025
elisa_yadao@hmsa.com
The Hawaii Medical Service Association (HMSA) and Healthways (NASDAQ: HWAY) today
announced a new 10-year agreement transferring HMSA’s integrated health management
functions and its HealthPass and other health and wellness programs to Healthways.
The two organizations will also work jointly to further the development and implementation
of the HMSA’s state-wide patient-centered medical home initiative.
Under the terms of the agreement, Healthways will assume responsibility for HMSA’s
disease management, care management, pharmacy benefit management, and health promotion,
prevention and quality improvement solutions and functions for the plan’s
approximately 700,000 individual, commercial and government-sponsored members.
“This is an important part of our effort to provide our members the best quality,
most affordable health care in the nation,” said Robert P. Hiam, president
and CEO of HMSA. “Utilizing Healthways’ nationally recognized expertise
in health management and health coaching enables HMSA to streamline our core business
functions, expand patient support services for our providers and continue working
to create an economically sustainable health care delivery system in Hawaii,”
Hiam added.
Healthways has been delivering HMSA’s health coaching and CareConnection
chronic disease programs for the past decade from its facility in Kapolei, Hawaii
where it maintains a clinical and operations staff of approximately 60 employees.
Michael A. Gold, HMSA executive vice president and COO said,“HMSA and Healthways
have a long history of jointly developed and implemented innovations designed to
improve the health and well-being of our members while reducing the cost of care.
Our new arrangement will enable us to put more focus on supporting the patient-physician
relationship and is a major step forward in pursuit of our goal to have the healthiest
members in the nation by providing them with the country’s most affordable,
highest quality health care and best customer experience.”
HMSA will also transfer operations of HMSA subsidiary Integrated Services, Inc.
(ISI) to Healthways. ISI provides health, wellness and prevention support to HMSA
employer groups, health care providers and members. Approximately 125 HMSA and ISI
employees will be offered positions by Healthways. The company will also assume
responsibility for HMSA’s current health research functions.
“Hawaii’s #1 state ranking in the Gallup-Healthways Well-Being Index
is not an accident,” said Ben R. Leedle, Jr., Healthways CEO. “HMSA’s
continual focus on improving the health and health care for its members and customers,
and the processes of care delivery for its providers is reflected in that result.
We are proud to have been part of helping HMSA in that effort over the past decade
but the work of maintaining the #1 ranking is never done. The data collected by
the Well-Being Index identifies areas of opportunity, particularly with respect
to helping employers across the state further realize the individual and corporate
performance benefits associated with improved well-being.”
“In the post-health care reform environment, the challenges facing America’s
health care system are well understood,” Leedle added. “More importantly,
there is growing recognition among all stakeholders that the best solutions will
be based on collaborative efforts that help individuals, wherever they may be on
the health continuum, avoid the next episode of care; and, when care is needed,
assure that it’s provided effectively, efficiently and by health care professionals
who are able to maximize their training and capabilities. But we will not just be
integrating services; we will also be further integrating those services with the
delivery system. By doing so, we will be actively removing historic system barriers
to achieving those goals and providing time-tested, proven solutions that will improve
the health and well being of members, improve both member and provider satisfaction
with the care experience and, as a result, reduce the cost of care and improve individual
and organizational performance.”
“Over our 10-year relationship with HMSA, we continually have been impressed
by their leaders’ focus on innovation and their willingness to jointly develop
approaches to improve the health and reduce the cost of care for their members and
customers,” Leedle concluded. “Both organizations long have been convinced
of the real value for members and providers resulting from effective integration
of services. The arrangement between us takes that integration to a new and exciting
dimension. As has been the case with so many other innovations over the past decade,
we are convinced that this new approach will distinguish itself as a model for the
entire health insurance industry. We look forward to getting started on this next
chapter of our relationship.”
About HMSA
HMSA is a nonprofit, mutual benefit association founded in Hawaii in 1938. It is
governed by a community board of directors that includes representatives from health
care, business, labor, government, education, clergy, and the community at large.
HMSA is an independent licensee of the Blue Cross and Blue Shield Association. Nationally,
HMSA and 38 other Blue Cross and Blue Shield plans provide worldwide coverage to
more than 100 million members.
About Healthways
Healthways is the leading provider of specialized, comprehensive solutions to help
millions of people maintain or improve their health and well-being and, as a result,
reduce overall costs. Healthways' solutions are designed to keep healthy people
healthy, reduce health-related risks and optimize care for those with chronic illness.
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 and a national Fitness Center
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.
For more information about the Gallup-Healthways Well-Being Index, please visit
www.well-beingindex.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 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 1A, and Part II, Item 7, of Healthways' Annual Report on Form 10-K for the
fiscal year ended December 31, 2009 and Part I, Item 2 and Part II, Item 1A of Healthways’
Quarterly Report on Form 10-Q for the period ended September 30, 2010. 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.
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