Pediatrix Expands Its Pediatric Cardiology Services With Arizona Group Practice Acquisition
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Dec. 15, 2003--Pediatrix Medical Group, Inc. (NYSE:PDX) has completed the acquisition of one of the nation's largest private pediatric cardiology physician practices, a 13-physician group that is based in Phoenix.
Arizona Pediatric Cardiology Consultants, APCC, has built a strong regional reputation for clinical excellence, providing comprehensive physician services to fetal and pediatric patients with congenital heart disease. APCC's expertise includes echocardiography and diagnostic and interventional cardiac catheterizations. Additionally, APCC provides pacemaker therapies and electrophysiology studies. The group maintains offices in Phoenix, Mesa and Tucson and operates outreach clinics throughout the State of Arizona, including certain Indian Reservations.
Pediatrix paid cash for the practice, and the transaction is expected to be immediately accretive to earnings. Specific terms were not disclosed.
"This transaction provides strong clinical synergies for our patients in Arizona and throughout the southwestern U.S., and it is an important milestone in our efforts to establish a national group of pediatric cardiologists that can draw on the considerable resources provided by Pediatrix," said Roger J. Medel, M.D., President and Chief Executive Officer of Pediatrix Medical Group. "Pediatric cardiology represents an attractive opportunity for us to expand our patient services and to continue to integrate the medical care offered to our high-risk patients."
The APCC physicians already work closely with Pediatrix's physicians who provide high-risk maternal-fetal care and neonatal specialists who provide care to high-risk patients in Phoenix, Mesa and Tucson.
"We enjoy a long-standing and successful clinical relationship with Pediatrix and we have been impressed by the integrated care model that they have developed for high-risk pregnancies and high-risk newborns," said Roy Jedeikin, M.D., Medical Director of APCC. "We look forward to the opportunities to contribute to that clinical model."
Pediatric cardiology is a vitally-important subspecialty within pediatric medicine and is linked closely with maternal-fetal and neonatal intensive care. There are approximately 1,500 board-certified pediatric cardiologists in the U.S. and about 40,000 infants, or 1 percent of all babies born in the U.S. each year, are born with congenital cardiovascular malformations. Advances in diagnostic procedures have made it possible to identify cardiovascular malformations relatively early in a pregnancy, and pediatric cardiologists routinely work closely with maternal-fetal specialists and neonatologists to improve patient outcomes.
The acquisition of APCC significantly expands Pediatrix's pediatric cardiology practice, which had consisted of eight pediatric cardiologists practicing in South Florida.
During 2003, Pediatrix has acquired six physician groups practicing within the neonatal, pediatric intensive care and pediatric cardiology subspecialties, and has expanded by receiving contracts to manage additional neonatal intensive care units (NICUs) in two U.S. markets. In addition, Pediatrix this year 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 http://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.
Pediatrix Medical Group, Inc.
Bob Kneeley, 954/384-0175, x-5300
SOURCE: Pediatrix Medical Group, Inc.