DMAA Statement on Healthways, LifeMasters Merger Agreement

FOR IMMEDIATE RELEASE
May 30, 2006

Contact: Carl Graziano
Director, Strategic Communications
(202) 737-5781
cgraziano@dmaa.org

Statement attributable to:
Tracey Moorhead
Executive Director, DMAA

"The merger agreement announced today between Healthways and LifeMasters speaks to a robust economic environment for disease management organizations. That environment also is reflected in other notable consolidations of disease management, as pointed out by a recent Boston Consulting Group report on payer trends and opportunities in the disease management industry.

"The BCG report, which charted 17 acquisitions and mergers among the largest disease management organizations and health plans from 2001 to 2005, pointed out that disease management isn't yet mature and that much opportunity for growth and development remains. Part of that growth comes through consolidation--market leaders expanding their base by acquiring proven companies that complement or enhance existing services or markets. This is the natural evolution of many business sectors, and disease management is no exception.

"We're confident that as disease management evolves, transactions such as this will create stronger organizations whose successes improve the outlook for all disease management and care coordination providers."

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About DMAA
DMAA is a non-profit, voluntary membership association representing all stakeholders in disease management and care coordination. Through advocacy targeting the health care industry, government agencies, employers and the general public, DMAA promotes the important role disease management and care coordination play in improving care quality and outcomes for people with chronic conditions. Visit DMAA online at www.dmaa.org.