Pediatrix Acquires Knoxville, TN, Neonatal Practice
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--June 20, 2003--Pediatrix Medical Group, Inc., (NYSE:PDX) today announced that it has expanded its presence in Tennessee, acquiring a large neonatal physician group practice based in Knoxville.
The six physicians and four neonatal nurse practitioners employed by the practice provide patient care at five Knoxville-area hospitals, including East Tennessee Children's Hospital, a regional pediatric referral center. Combined volume at all of the units staffed by the physician group exceeds 20,000 annual patient days, including more than 13,500 annual neonatal intensive care unit (NICU) patient days. The physicians also cover well-baby nurseries at several Knoxville-area hospitals.
Pediatrix paid cash for the practice, and expects that the transaction will be immediately accretive to earnings per share. Specific terms were not disclosed.
The physicians join Pediatrix's growing national group practice focused on maternal-fetal-newborn care, which includes physicians practicing in nearby Chattanooga, and at two Memphis-area hospitals.
The Knoxville group practice acquisition is a continuation of Pediatrix's strategy of extending its national group, adding value to patients, physicians, hospital administrators and third-party payors. Earlier this month, Pediatrix began providing physician services at a large children's hospital in Corpus Christi, TX, a contract that was awarded through internal development efforts.
Pediatrix also recently expanded into newborn metabolic diagnostic screening with the acquisition last month of Neo Gen Screening, Inc., the nation's largest independent laboratory providing newborn screening.
Pediatrix was founded in 1979. Its neonatal physicians provide services at more than 200 NICUs, and through Obstetrix, its perinatal physicians provide services in many markets where Pediatrix's neonatal physicians practice. Combined, Pediatrix and its affiliated professional corporations employ more than 630 physicians in 30 states and Puerto Rico. Additional information is available on the Internet at http://www.pediatrix.com. Information about Neo Gen Screening is available on the Internet at http://www.neogenscreening.com
Matters discussed in this release may include forward-looking statements within the meaning of the securities laws. All statements, other than statements of historical facts, that address activities, events or developments that Pediatrix intends, expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements 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 relevant. Any forward-looking statement is not a guarantee of future performance and is subject to various risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by such forward-looking statement. Such risks and uncertainties include, among others: pending and future billing and other investigations by government authorities; Pediatrix's ability to comply with laws and regulations applicable to the healthcare industry; limitations of, reductions in or retroactive adjustments to reimbursement amounts or rates by government-sponsored healthcare programs; whether physicians appropriately record the services they provide; Pediatrix's ability to find suitable acquisition candidates and to successfully integrate future or recent acquisitions; laws protecting the privacy of patient healthcare information; federal and state healthcare reform or changes in government-sponsored healthcare programs; Pediatrix's ability to successfully recruit and retain qualified physicians; malpractice and other lawsuits; the value of Pediatrix's intangible assets, such as goodwill; Pediatrix's ability to manage growth; fluctuations in quarterly results; and competition in the healthcare industry.
Pediatrix more fully describes these and other risk factors in its Annual Report on Form 10-K for the year ended December 31, 2002, filed with the Securities and Exchange Commission. Any forward-looking statements in this press release are made as of the date hereof based on management's current beliefs and expectations and Pediatrix has no obligation to update and revise any such statements, whether as a result of new developments, information or otherwise.
CONTACT: Pediatrix Medical Group, Inc., Fort Lauderdale
Bob Kneeley, 954/384-0175, x-5300
SOURCE: Pediatrix Medical Group, Inc.