THE INNOVATOR OF THE YEAR: American LIFECARE

A trip to China in 1995 gave American LIFECARE Chairman Ed Michael Reggie the idea to transform his managed care organization by incorporating the healing arts. "At that time in the United States there was tremendous backlash against HMOs because of burdensome restrictions on choice," says Reggie.

The services, which became widely available last year, include yoga, massage and acupuncture. Members of the socalled Healing Arts Network also get discounts at Aveda. Concept salons and Smoothie King franchises. Members do not pay extra to access the network, and the process is simple: Members simply show their insurance identification cards to the receive discounts.

"Whereas members might perceive massage to be a luxury enjoyed periodically, they might be inclined to purchase a Smoothie on a regular basis as a healthy lunch alternative, for example," says Reggie. "It is these daily benefits to the HAN member that make the network truly umique." He says the therapeutic massage and other spa services have proven extremely popular.