Pediatrix Acquires Virginia Neonatal Physician Group
FORT LAUDERDALE, Fla., Jan 5, 2004 (BUSINESS WIRE) -- The nation's largest provider of maternal-fetal and newborn physician services, Pediatrix Medical Group, Inc., (NYSE:PDX) has expanded its presence in Virginia with the acquisition of a neonatal physician group practice based in Lynchburg.
"Physicians continue to be drawn to our national group practice because we are proving that our integrated care model makes it possible for them to focus on improving patient care in their community," said Roger J. Medel, M.D., President and Chief Executive Officer of Pediatrix.
The acquired group consists of three neonatal physicians who provide patient services at the Level III neonatal intensive care unit (NICU) at Virginia Baptist Hospital. The neonatal physician practice at Virginia Baptist has annual patient volume in excess of 7,000 patient days, which includes care provided in both the NICU and the newborn nursery.
"We have enjoyed a strong relationship with the neonatal physicians practicing at Virginia Baptist, and we look forward to them bringing the resources of Pediatrix's national physician group, including their commitment to improving patient outcomes through research, professional education, and clinical quality initiatives to families in Central Virginia," said George W. Dawson, President and Chief Executive Officer of Centra Health, a regional healthcare system serving central Virginia that includes Virginia Baptist.
Pediatrix physicians currently provide neonatal physician services in several Virginia markets, including Alexandria, Virginia Beach and nearby Roanoke.
Pediatrix paid cash for the physician group practice, and specific terms were not disclosed. The transaction is expected to be immediately accretive to Pediatrix's earnings.
During 2003, Pediatrix acquired four neonatal physician group practices, two pediatric cardiology practices and a pediatric intensive care practice and entered into three contracts to provide neonatal physician services in several new markets. In addition, Pediatrix acquired the nation's largest independent laboratory providing newborn metabolic screening.
Pediatrix was founded in 1979. Pediatrix physicians are reshaping the delivery of maternal-fetal and newborn care, identifying best demonstrated processes and participating in clinical research to enhance patient outcomes and provide high-quality, cost-effective care. 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. Pediatrix also employs pediatric intensivists, pediatric hospitalists, and pediatric cardiologists. Combined, Pediatrix and its affiliated professional corporations employ more than 690 physicians in 30 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.
Matters discussed in this release may include forward-looking statements within the meaning of the Federal securities laws. Such forward-looking statements may include, but are not limited to, statements relating to Pediatrix's objectives, plans and strategies, and all statements (other than statements of historical facts) that address activities, events or developments that Pediatrix intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are often characterized by terminology such as "believe", "hope", "may", "anticipate", "should", "intend", "plan", "will", "expect", "estimate", "project", "positioned", "strategy" and similar expressions.
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 believed to be appropriate. Any forward-looking statement is made as of the date hereof. We disclaim any duty to update or revise any such statement, 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 that could cause actual results, developments and business decisions to differ materially from those contemplated by such forward-looking statements.
Some of the factors that may cause actual results, developments and business decisions to differ materially from those projected or anticipated by such forward-looking statements, as more fully discussed under the section entitled "Risk Factors" in Pediatrix's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, include, pending and future investigations by federal and state government authorities of Pediatrix's billing or other practices (including the previously disclosed investigations regarding Pediatrix's Medicaid billing practices and an investigation by the Federal Trade Commission); unfavorable regulatory or other changes or conditions in geographic areas where Pediatrix's operations are concentrated; determinations that Pediatrix failed to comply with applicable health care laws and regulations, limitations, reductions or retroactive adjustments reimbursement amounts or rates by government-sponsored health care programs; audits by third party payors with respect to Pediatrix's billings for services; failure of physicians affiliated with us to appropriately record and document the services that they provide; Pediatrix's failure to find suitable acquisition candidates or successfully integrate any future or recent acquisitions; Pediatrix's failure to successfully implement Pediatrix's strategy of diversifying its operations; impairment of long-lived assets, such as goodwill; federal and state health care reform, including changes in the interpretation of government-sponsored health care programs; Pediatrix's failure to successfully recruit additional and retain existing qualified physicians; pending and future malpractice and other lawsuits; Pediatrix's failure to manage growth effectively and to maintain effective and efficient information systems; Pediatrix's failure to collect reimbursements from third party payors in a timely manner; cancellation or non-renewal of Pediatrix's arrangements with hospitals, or renewal of such arrangements on less favorable terms; loss of Pediatrix's affiliated physicians' privileges or ability to provide services in hospitals, or hospitals entering into arrangements with physicians not affiliated with Pediatrix; and increased competition in the health care industry.
SOURCE: Pediatrix Medical Group, Inc.
Pediatrix Medical Group, Inc.
Bob Kneeley, 954-384-0175, x-5300