Pediatrix Acquires Atlanta Anesthesia Group Practice
Completes $100 Million Share Repurchase
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--July 3, 2008--Pediatrix Medical Group, Inc. (NYSE: PDX) has completed the acquisition of Georgia Perioperative Consultants, LLC, an anesthesia physician group practice that provides services to patients treated at facilities in the Atlanta metropolitan area.
Georgia Perioperative consists of 28 physicians and 66 certified registered nurse anesthetists (CRNAs) and anesthesia assistants who practice at Atlanta's Piedmont Hospital, Piedmont Fayette Hospital, and five ambulatory surgery centers in the Atlanta area.
The transaction is Pediatrix's second anesthesia group practice acquisition and advances the Company's strategy of building a national group practice of anesthesia services to parallel its neonatal, maternal fetal, pediatric cardiology and pediatric intensivist physician services. Pediatrix's first anesthesia acquisition, Fairfax Anesthesiology Associates, based in northern Virginia, was completed in September 2007.
The physicians at Georgia Perioperative joined Pediatrix for a variety of reasons, including the opportunity to collaborate with anesthesia practices across the United States to improve patient care, as well as to gain needed administrative support to manage anticipated growth.
"We expect that as part of Pediatrix we'll enjoy some relief from many of the pressures on the business side of our practice, and that we'll play a role in helping to shape the future of anesthesia services within this organization," said Jeffrey D. Shapiro, M.D., President of Georgia Perioperative Consultants. "We're excited about building on Pediatrix's approach to clinical quality and best practices and working with other groups to transfer those skills to anesthesia."
The Georgia Perioperative practice was formed in 1970 and has worked with Piedmont Hospital, a 481-bed tertiary care center, to provide anesthesia services since then. The practice has grown with the hospital system and the surrounding communities. Piedmont Fayette is a 143-bed acute care community hospital located in Fayetteville, GA. Pediatrix physicians staff the neonatal intensive care units at both hospitals.
"With Georgia Perioperative, and Fairfax Anesthesiology, we're demonstrating that we have the right model to attract leading anesthesia practices, in growing markets, to help us to build a national practice within this specialty," said Roger J. Medel, M.D., Chief Executive Officer of Pediatrix. "As we execute on our strategy, we will be very deliberate in delivering added value to those physicians who join us, to our hospital partners and ultimately to our patients."
Georgia Perioperative will be integrated into American Anesthesiology, a division of Pediatrix, which will apply Pediatrix's core competency of managing the numerous administrative functions of hospital-based physician groups to anesthesia practices, allowing anesthesiologists, nurse anesthetists and anesthesia assistants more time to provide patient care. Pediatrix also encourages its physicians to use aggregated clinical data to conduct ongoing research, education and collaborative initiatives to improve patient care.
Pediatrix paid cash for the practice, which is expected to contribute annual earnings of approximately three cents per share after considering amortization expense and foregone investment income. The estimated earnings are based on Georgia Perioperative's current operations and does not include potential improvements under Pediatrix's processes. Additional terms of the transaction were not disclosed.
Pediatrix now has more than 200 anesthesia providers, including more than 80 anesthesiologists and more than 120 CRNAs and anesthesia assistants providing patient care in Georgia and Virginia.
The Company remains focused on expanding its historical physician services around newborn, maternal fetal and pediatric subspecialty care, as well as building its anesthesia physician services. In addition to Georgia Perioperative, Pediatrix has acquired one neonatal, one maternal fetal and three pediatric cardiology group practices, during 2008.
Separately, the Company announced that it has completed the $100 million share repurchase program that had been authorized in late May.
Pediatrix Medical Group, Inc. is the nation's leading provider of neonatal, maternal-fetal and pediatric physician subspecialty services and recently expanded to include anesthesiology services. Pediatrix physicians and advanced practitioners are reshaping the delivery of care within their subspecialties using evidence-based tools, continuous quality initiatives and clinical research to enhance patient outcomes and provide high-quality, cost-effective care. Founded in 1979, its neonatal physicians provide services at more than 250 neonatal intensive care units, and in many markets they collaborate with affiliated maternal-fetal medicine, pediatric cardiology physician subspecialists and pediatric intensivists to provide a clinical care continuum. Combined, Pediatrix and its affiliated professional corporations employ more than 1,100 physicians in 32 states and Puerto Rico. Pediatrix is also the nation's largest provider of newborn hearing screens. Additional information is available at www.pediatrix.com.
Certain statements and information in this press release may be deemed to be "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. 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 are forward-looking statements. 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 Pediatrix'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 Pediatrix 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 Pediatrix's most recent Annual Report on Form 10-K, including the section entitled "Risk Factors".
CONTACT: Pediatrix Medical Group, Inc. Bob Kneeley, 954-384-0175, x-5300 Director, Investor Relations email@example.com
SOURCE: Pediatrix Medical Group, Inc.