Texas Health Resources and Healthways Announce Ten-Year Commitment to Improve Well-Being and Reduce Health-Related Costs i

Collaboration to Establish Texas Health as the Premier Driver of Well-Being and Performance for Individuals, Employers, and Communities in North Texas

Regional Model Holds Promise for Health Systems across the Nation

ARLINGTON, Texas & NASHVILLE, Tenn.--(BUSINESS WIRE)-- Texas Health Resources (Texas Health) and Healthways (NASDAQ: HWAY) today announced a 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 respective resources and capabilities to fulfill three primary objectives:

1. Keep healthy people healthy
2. Maintain healthy behaviors and reduce modifiable health-related risk factors
3. Optimize care for those with known conditions or diseases.

When executed fully, the anticipated results of this unprecedented agreement 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.

“The face of health care is changing in Texas and across the country,” said Douglas D. Hawthorne, FACHE, CEO of Dallas-based Texas Health Resources, one of the largest faith-based, nonprofit health systems in the United States. “The system that we have today is not sustainable. Our mission to improve the health of the people in the communities we serve is about more than sick care -- it’s about keeping people well and keeping them out of the hospital. We must start earlier and keep people healthier to keep the costs down. We must increase collaboration with physicians, employers, health plans, and communities to extend our reach beyond the walls of the hospital.

“We chose to work with Healthways because we knew that we need a trusted industry collaborator who shares our vision and has a proven track record of innovation, scalable solutions, and the tenacity to get results.”

“The cost of health care in this country continues to rise at an alarming rate,” noted Healthways CEO, Ben R. Leedle, Jr. “Regardless of what happens in Washington, D.C., Healthways is going to work with health systems like Texas Health to tackle this problem. Texas Health is an acknowledged leader and innovator among the nation’s largest health systems. Recognizing their excellence and commitment to improving the health of people in the communities they serve, it should be no surprise that they have chosen to continue to lead and not follow. We are excited to join them in this bold step to improve well-being and lower health-related costs for the people of North Texas.”

Texas Health and Healthways will provide a broad set of technology and management tools, along with a dedicated, highly-trained workforce of population health experts. As a result, physicians will benefit from a far greater ability to guide their patients’ health and keep pace with their constantly evolving patient populations.

“Successfully launching a proactive well-being improvement model begins at the point of highest trust and influence with individuals of any population,” added Hawthorne. “That means working with physicians and other providers to reinforce and strengthen the relationship they have with their patients.”

Leedle continued, “Twenty, even ten, years ago, the health care industry didn’t have the tools or, more importantly, the advanced science to prove that this type of model could improve well-being and performance, and reduce health-related costs. In the past several years, Healthways has led the way to establishing that proof. We believe that infusing our experience and proven capabilities in well-being improvement into Texas Health’s broad array of health care facilities and services may well serve as a national model for the health care delivery system of the future.”

Under the terms of this agreement, both organizations are deeply aligned to take advantage of their collective capabilities and to introduce innovation that further advances the model over time. Over the next 90 days, Texas Health and Healthways will confirm their initial strategic, implementation, and operating plans for the adoption of new capabilities and services within the health system. The initial plan will take the better part of a year to implement. When fully operational, the new model will be distributed through a number of channels, including Texas Health’s facilities, physicians’ offices, and community- and business-based venues.

“We must focus more of our resources on helping people stay healthy and make lifestyle changes that will dramatically reduce the incidence, prevalence, and severity of disease,” said Dr. Mark Lester, Interim Chief Clinical and Quality Officer, Texas Health Resources. “Physicians will help lead and direct these efforts, and it will require the success of collaborations such as the one announced today by Texas Health Resources and Healthways to get us out of the sick-care model that has dominated health care in the US for the last 50 years.”

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 24 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, a large physician group, outpatient facilities, 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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Chip Wochomurka, 615-614-4493
Director Investor Relations
[email protected]
Texas Health Resources
Wendell Watson, 682-236-6963
Director of Public Relations
[email protected]

KEYWORDS:   United States  North America  Tennessee  Texas

INDUSTRY KEYWORDS:   Health  Fitness & Nutrition  Hospitals  General Health