AMERICAN HEALTHWAYS INC
EX-10.3, 2005 CAPITAL ACCUMULATION PLAN
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<DESCRIPTION>EX-10.3, 2005 CAPITAL ACCUMULATION PLAN
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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 10.3 </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>American Healthways,
Inc. (the &#147;Company&#148;) </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fiscal Year 2005 Bonus
Criteria Under Capital Accumulation Plan </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Compensation Committee of the
Company&#146;s Board of Directors approved the bonus criteria for fiscal year 2005 under
the Capital Accumulation Plan (the &#147;CAP&#148;), a copy of which has been filed as
Exhibit&nbsp;10.11 to the Company&#146;s Registration Statement on Form&nbsp;S-1
(Registration No.&nbsp;33-41119) and Exhibit&nbsp;10.8 to Form&nbsp;10-K of the Company
for its fiscal year ended August&nbsp;31, 1995. For fiscal year 2005, awards made under
the CAP will be predicated on achieving targeted earnings per share. Under the CAP for
fiscal year 2005, eligible participants may receive a maximum deferred compensation award of up to 20% of such
participant&#146;s base salary. </FONT></P>









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