Attractive, Rapidly Growing Management-Services Platform
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Aug. 18, 2014--
MEDNAX, Inc. (NYSE:MD), the national medical group specializing in
neonatal, anesthesia, maternal-fetal, pediatric cardiology, and other
pediatric physician services, today announced the signing of a
definitive agreement to acquire MedData, Inc., a rapidly-growing
provider of revenue cycle management services, including professional
and facility coding, billing and collections, as well as an industry
leading early out/patient pay solution, to emergency department,
hospitalist, and other physician specialty groups, as well as to
hospitals.
Founded in 1980, MedData has emerged as a leading innovator in
technology- and offshore-enabled revenue cycle management, with a suite
of outsourced services targeted at the intersection of reimbursement and
patient engagement and satisfaction. The company’s “patient-focused”
approach has generated proven results for its clients, while its
distinctive combination of onshore and offshore capabilities provides
efficiency and additional scalability as the company continues to grow
rapidly. Driven by its proven outcomes and customer-focused approach,
MedData has generated compound annual revenue growth of more than 25%
since 2007, to a current run rate of approximately $65 million. Today,
the company serves more than 3,000 physicians at 700 facilities across
43 states.
“This transaction marks an important step in our strategic growth,” said
Roger J. Medel, M.D., Chief Executive Officer of MEDNAX. “We believe it
will provide us with a very attractive platform through which to provide
management services to facilities and physician groups beyond our
existing footprint, a capability we anticipate to grow in demand as
reimbursement structures continue to evolve. Having worked with MedData
for several years, we recognized the value of this organization and the
services it provides. Just as importantly, MedData’s service offerings
and client base are very complementary to our own core capabilities and
physician specialties, and this combination should thus allow us to
expand our offerings for our existing hospital relationships and to
build new relationships with unaffiliated hospitals and physicians.”
“We’re extremely excited about what this means for our business,” said
Ann Barnes, Chief Executive Officer of MedData. “MEDNAX is committed to
helping MedData build an enhanced services platform and expand our
presence across the healthcare landscape in a meaningful way. More than
ever, we will be driving revenue cycle management solutions that help
improve our clients’ business now and in the future.”
The transaction is expected to close in the third quarter of 2014,
subject to regulatory approvals. This will be a cash transaction and is
expected to be accretive to earnings, after non-cash amortization
expense and interest expense.
ABOUT MEDDATA
MedData, Inc. is one of the nation’s leading providers of a range of
patient-focused medical revenue
cycle management services including billing, coding, collections,
and patient
satisfaction. For more than 30 years, the Company has been providing
innovative billing solutions to the medical community and serving
millions of patients across numerous medical specialties. MedData
currently serves more than 3,000 physicians at 700 facilities across 43
states from its headquarters in Brecksville, OH, as well as from offices
in Grand Rapids, MI, Roseville, CA, Bellevue, WA, and Peoria, IL. To
learn more about MedData’s patient-focused medical revenue cycle
management solutions, please visit www.meddata.com.
ABOUT MEDNAX
MEDNAX, Inc. is a national medical group that comprises the nation's
leading providers of neonatal, anesthesia, maternal-fetal and pediatric
medical and surgical subspecialty services. The Company is reshaping the
delivery of care within its specialties and subspecialties using
evidence-based tools, continuous quality initiatives and clinical
research to enhance patient outcomes and provide high-quality,
cost-effective care. Pediatrix Medical Group, a division of MEDNAX, was
founded in 1979 and includes neonatal physicians who provide services at
more than 360 neonatal intensive care units, and collaborate with
affiliated maternal-fetal medicine, pediatric cardiology, pediatric
critical care and physician subspecialists to provide a clinical care
continuum. Pediatrix is also the nation's largest provider of newborn
hearing screens. American Anesthesiology, a division of MEDNAX, was
established in 2007 and includes more than 2,150 anesthesiologists and
advanced practitioners who provide anesthesia care to patients in
connection with surgical and other procedures as well as pain
management. MEDNAX, through its affiliated professional corporations,
employs approximately 2,500 physicians in 34 states and Puerto Rico.
Additional information is available at www.mednax.com.
Certain statements and information in this press release may be
deemed to contain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Forward-looking statements may
include, but are not limited to, statements relating to our objectives,
plans and strategies, and all statements, other than statements of
historical facts, that address activities, events or developments that
we intend, expect, project, believe or anticipate will or may occur in
the future. These statements are often characterized by terminology such
as “believe”, “hope”, “may”, “anticipate”, “should”, “intend”, “plan”,
“will”, “expect”, “estimate”, “project”, “positioned”, “strategy” and
similar expressions, and are based on assumptions and assessments made
by MEDNAX’s management in light of their experience and their perception
of historical trends, current conditions, expected future developments
and other factors they believe to be appropriate. Any forward-looking
statements in this press release are made as of the date hereof, and
MEDNAX undertakes no duty to update or revise any such statements,
whether as a result of new information, future events or otherwise.
Forward-looking statements are not guarantees of future performance and
are subject to risks and uncertainties. Important factors that could cause
actual results, developments, and business decisions to differ
materially from forward-looking statements are described in MEDNAX’s
most recent Annual Report on Form 10-K and its Quarterly Reports on Form
10-Q, including the sections entitled “Risk Factors”, as well MEDNAX’s
current reports on Form 8-K, filed with the Securities and
Exchange Commission.
Source: MEDNAX, Inc.
MEDNAX, Inc.
Charles Lynch, 954-384-0175, x-5692
Vice
President, Strategy and Investor Relations
charles_lynch@mednax.com