Pediatrix Acquires Two Physician Practices
Adds Nashville Neonatal, Central California Maternal-Fetal Groups
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Oct. 1, 2007--Pediatrix Medical Group, Inc., (NYSE: PDX) has completed the acquisitions of a neonatal physician group practice based in Nashville, TN, and a maternal-fetal medicine group practice located in San Luis Obispo, CA., in two separate transactions, each of which was effective September 30, 2007.
The six physicians practicing as Neonatologists Professional Service staff the Level III neonatal intensive care unit (NICU) at Nashville's Baptist Hospital. Historical patient volume at that NICU exceeds 9,000 annual patient days.
Central Coast Maternal-Fetal Medicine, Inc., is a three-physician group specializing in high-risk obstetrics and serving California's growing communities in San Luis Obispo, northern Santa Barbara and southern Monterey counties.
Neonatologists Professional Service was formed in 1982, and has maintained a continuous relationship with Baptist Hospital for over 25 years. Among the catalysts for the group to join Pediatrix is their need for additional infrastructure to support anticipated patient volume growth, which is expected when the Baptist NICU expands in the near future.
"The administrative side of a medical practice has become so complicated over the years," said Jorge Rojas, M.D., a founding partner of the practice. Dr. Rojas will now serve as Pediatrix's medical director. "It has become increasingly difficult for us to dedicate the resources needed to manage in this environment while maintaining our focus on patient care. As a larger group, Pediatrix has the experience and the personnel to support our practice, allowing us to dedicate more resources to taking care of our patients."
The neonatologists practicing at Baptist Hospital also expect that as part of Pediatrix they'll have more comprehensive information to help them continuously improve clinical quality.
"Our ability to gather data in an electronic note system, and to compare and evaluate our outcomes across the large base of neonatal units contributing to Pediatrix's clinical data warehouse is very attractive," Dr. Rojas said.
Pediatrix's national group of neonatal physicians includes more than 735 neonatologists who staff more than 240 NICUs. Prior to this acquisition, Pediatrix's network in Tennessee included practices in Memphis, Knoxville and Chattanooga.
San Luis Obispo Maternal-Fetal Medicine
Growth of the San Luis Obispo maternal-fetal medicine practice has largely been the result of increasing demand from referring obstetricians for services including high risk pregnancy consultation and management, prenatal diagnosis, and obstetric ultrasound.
"We have a geographically large referral area with a growing, younger population, and our practice has expanded based on the quality of services that our patients receive," said Leonard A. Cedars, M.D., who will serve as Pediatrix's maternal-fetal medicine medical director and who has been practicing in San Luis Obispo since 1996. "Our continued growth will be the result of our ability to maintain our focus on the expansion of our clinical services, and we expect that Pediatrix's clinical and administrative support will help us to better serve our communities."
The Central Coast physicians will practice as part of Obstetrix Medical Group, Pediatrix's national group of more than 90 maternal-fetal medicine subspecialists. They also work with the neonatal physicians practicing as part of Pediatrix who staff the Sierra Vista Regional Medical Center NICU located in San Luis Obispo.
Pediatrix paid cash for both practices, and they are expected to immediately contribute to the Company's earnings per share. No additional terms were disclosed.
Pediatrix has completed seven physician group practice acquisitions during 2007, including: three neonatal group practices; a maternal-fetal medicine practice; one pediatric cardiology practice; an ultrasound radiology practice; and an anesthesia physician group practice.
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 the maternal-fetal, neonatal intensive care and pediatric cardiology 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 240 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 1,000 physicians in 32 states and Puerto Rico. Pediatrix is also the nation's largest provider of newborn hearing screens and newborn metabolic screening. 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". Additional factors include, but are not limited to: the possible discovery of additional facts beyond those reviewed by the Audit Committee; litigation related to the matters investigated by the Pediatrix's Audit Committee or the restatements to Pediatrix's financial statements and other historical disclosures; and any regulatory actions of the SEC or the U.S. Attorney related to such matters.
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