HP Lands $380 Million Outsourcing Deal with Healthways, A Provider of Wellness Solutions

Hewlett-Packard Co.'s enterprise services unit said that it has won a 10-year, $380 million contract to supply Healthways Inc., a publicly-traded, $700 million provider of healthcare solutions based in Franklin, TN, with applications and technology services.

Under terms of the agreement, HP will provide Healthways with applications development and management services to help it improve its technology infrastructure. Healthways said that it expects consulting with HP will allow its mission critical application Embrace to support more customers and increasing market demand for multi-party integration.

In addition, the companies said that they will leverage HP's expertise in healthcare applications for private and public health insurance programs and Healthways' knowledge in well-being improvement solutions for domestic and international health plans, employers and governments, to uncover new market opportunities.

"The increased focus on improving health and well-being offers companies like Healthways unique opportunities for continued growth and expansion," said Sue Arthur, HP Enterprise Services vice president, Healthcare and Life Sciences.

"HP has 45 years of deep vertical experience to partner with companies like Healthways to address complex emerging business challenges effectively while mitigating risk," she said.

Ben R. Leedle, Healthways president and chief executive, said that "HP's deep healthcare expertise offered the best opportunity to enhance an already powerful platform with greater scalability and sustainable timely innovation at a lower cost for us."

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