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Pediatrix Confirms Settlement of Nevada Investigations

    FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Nov 8, 2001--Pediatrix Medical Group, Inc., (NYSE:PDX) today confirmed and clarified reports that it has settled two separate billing investigations with the State of Nevada.
    The settlements included $110,000 paid in April 2001 covering Medicaid reimbursements for a billing practice established by a physician group prior to that group's acquisition by Pediatrix's wholly-owned subsidiary, Obstetrix Medical Group, Inc.
    Separately, Pediatrix paid $35,000 last month to the State of Nevada as settlement for any potential claims related to certain Medicaid billings for neonatology, newborn and pediatric services.
    Pediatrix fully cooperated with state officials, and the settlement agreements were reached as part of a desire to avoid the time and expense of litigation associated with disputed claims. There was no admission of liability on the part of Pediatrix, nor violation of any state or federal regulations.
    In general, Pediatrix believes that billing audits, inquiries and investigations from government agencies will continue to occur in the ordinary course of its business and in the healthcare services industry in general. Pediatrix's previously stated policy is to disclose individual investigations based upon its analysis of the materiality of the investigations to the Company. Based upon settlements reached in Florida, Arizona and Nevada, the Company remains confident that its billing practices are appropriate. However, there can be no assurance as to whether any inquiry will have a material adverse effect on its business, financial condition and results of operations.

    About Pediatrix

    Pediatrix was founded in 1979. Its neonatal physicians provide services at more than 185 NICUs and through Obstetrix its perinatal physicians provide services in 16 markets where Pediatrix's neonatal physicians practice. Combined, Pediatrix and its affiliated professional corporations employ more than 585 physicians in 27 states and Puerto Rico. Additional information is available on the Internet:

    Except for historical information, matters discussed in this release include forward-looking statements that involve risks and uncertainties including, but not limited to, business, financial and integration risks. In addition, Pediatrix details other risk factors in its Annual Report on Form 10-K for the year ended December 31, 2000, filed with the U.S. Securities and Exchange Commission. These risks and uncertainties could cause actual results to differ materially from those projected or anticipated in the forward-looking statements.


    CONTACT:  Pediatrix Medical Group, Inc., Fort Lauderdale
              Bob Kneeley, 954/384-0175, x-5300

    SOURCE:  Pediatrix Medical Group, Inc.