American Healthways Names Ben R. Leedle, Jr. President and Chief Operating Officer.

Health/Medical Writers

NASHVILLE, Tenn.--(BW HealthWire)--May 22, 2002

American Healthways, Inc. (Nasdaq/NM:AMHC), the nation's leading provider of specialized, comprehensive care enhancement services to health plans, physicians and hospitals, today announced that its Chief Operating Officer, Ben Leedle, has been appointed President of the Company.

In his new capacity, Leedle will continue to report to Thomas Cigarran, the Company's Chairman and Chief Executive Officer. Mr. Leedle replaces Rich Rakowski, who will have a leadership role in the Company's joint strategic Innovation Initiative with Blue Cross and Blue Shield of Minnesota (see separate announcement).

"Ben has been a major contributor to the company's success and growth over the past 16 years," said Cigarran. "His constant drive for new and improved programs that have positive bottom-line impact for our health plan clients has helped win new customers and secure broader implementation of our innovative care enhancement services. He has the confidence of our Board and the entire senior management team in leading the Company forward toward its objectives.

"American Healthways' industry-leading position is in no small part a reflection of Ben's energy and leadership," Cigarran added. "Lives under contract, revenues and earnings per share have all grown dramatically over the past three years. As our Chief Operating Officer, Ben has been instrumental in leading that growth. As President and COO, Ben will contribute even more significantly to the Company's ability to assess market needs, develop products that are responsive to those needs, deliver services which exceed our customers' expectations and assure the Company's continued growth and success."

Mr. Leedle, 41, joined American Healthways in 1985. During his career with AMHC, he has held increasingly more responsible positions in both operations and business development. In 1994, the Company selected Leedle to head the development and operations of the then new health plan business segment that, under his direction, now provides more than 70% of the Company's revenues and profits. Most recently Leedle has served as Executive Vice President and COO of American Healthways responsible for operations, information technology, human resources, informatics, contract performance, product performance and management, and sales and business development. "All of us at AMHC are delighted with Ben's promotion as it recognizes both his past and anticipated future contributions to the Company's success," Cigarran added.

AMHC also announced today its previous appointment of Donald B. Taylor as executive vice president, business development reporting to Mr. Leedle. Mr. Taylor is responsible for directing the company's health plan sales and business expansion activities.

"The historical growth at AMHC has been a function of successfully selling our service to customers and then delivering on our promises and commitments," Leedle said. "Don's demonstrated ability to effectively develop and lead a sales organization that sells a conceptual service product to executive management in a highly complex market space made it clear to us that he was the right person for this critically important role in the Company. Further, his general business expertise and experience makes him a valuable member of our senior management team."

Prior to joining American Healthways in February, Mr. Taylor was the president of FISI Madison Financial and BCI - a subsidiary of Cendant Corporation. Under his direction, that company reached record sales growth in the US market. He also successfully launched the company's entrance into the international market during his tenure.

"The most important assets we have at American Healthways are the people who work here." said Cigarran, "Ben and Don, along with the rest of the senior management team, have the experience, skills and drive necessary to provide the critical leadership to assure the continued growth and success of the Company."

Nashville-based American Healthways (www.americanhealthways.com) is the nation's leading provider of specialized, comprehensive care enhancement services to health plans, physicians and hospitals. The Company's programs have been recognized for innovation and excellence, most recently by the Disease Management Association of America's 2001 Comprehensive Disease Management Company Leadership Award. American Healthways has contracts to provide disease and care management programs to health plans with members in all 50 states, the District of Columbia and Puerto Rico. The Company also operates diabetes management programs in nearly 80 hospitals nationwide.