Pediatrix Launches New Initiative with Acquisition of Fairfax Anesthesiology Associates
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Sept. 4, 2007--Pediatrix Medical Group, Inc. (NYSE: PDX), today announced that its new division, American Anesthesiology, has completed the acquisition of Fairfax Anesthesiology Associates, Inc. The transaction launches Pediatrix's effort to develop a national group practice specializing in anesthesia services.
Fairfax Anesthesiology Associates (FAA) is a group practice comprised of 53 anesthesiologists and 60 certified registered nurse anesthetists (CRNAs) who provide care for more than 60,000 patients annually. FAA is the exclusive anesthesiology provider at Inova Health System's Inova Fairfax Hospital.
"We've attracted one of the nation's premier anesthesiology groups as our first anesthesia group practice," said Roger J. Medel, M.D., Chief Executive Officer of Pediatrix. "FAA has an extensive track record of delivering high quality patient care, while working with its hospital partner to support the growth of Inova Fairfax over more than 30 years. We're pleased that FAA will be a foundation for our future national group practice in anesthesiology and we're excited about this significant new growth platform for our organization."
Inova Fairfax Hospital is an 833-bed tertiary care hospital which houses a regional trauma center, and has the nation's fifth busiest obstetric program and is one of only six community hospitals in the nation offering a spectrum of organ transplant services. FAA supports key specialties within Inova Health System, which include Inova Fairfax Heart and Vascular Institute, Inova Fairfax Hospital for Children, Inova Fairfax Pain Management Center and the Inova Surgery Center, an ambulatory surgery center.
FAA was founded in the mid-1970s and has expanded as the hospital's primary service area in northern Virginia has grown, and as Inova Fairfax Hospital has provided increasingly more complex services as part of maintaining its leading position in healthcare delivery in that region. In addition, FAA has developed an office-based anesthesiology group, Horizon Anesthesia, which provides anesthesia support for office-based practices, including medical and dental offices.
"Both Fairfax Anesthesiology and Pediatrix share a commitment to delivering high-quality patient care within their specialties," said Jeffrey A. Scheidlinger, M.D., Chief Executive Officer of FAA. "This was one of several compelling reasons for our group to affiliate with Pediatrix. We were all impressed by Pediatrix's extensive track record of acquiring, integrating and retaining physician practices, which can be attributed to its focus on patient care and advancing a culture of partnership among their physicians and practitioners. We plan to integrate Pediatrix's approach toward aggregating clinical information to further improve patient care and safety."
Pediatrix is the nation's leading provider of hospital-based neonatal physician services and its neonatologists staff more than 240 neonatal intensive care units (NICUs) across the nation. Pediatrix has previously announced its intention to expand to other hospital-based physician services, specifically anesthesiology.
Pediatrix paid cash for the practice, which is expected to contribute annual earnings, after considering amortization expense and foregone investment income, of approximately two cents per share. These estimated earnings are based on FAA's current business, and do not include any potential efficiencies from managed care contracting and improved collections. Additional terms of the transaction were not disclosed.
FAA will be integrated into Pediatrix's new American Anesthesiology operating division, which will apply Pediatrix's core competency of managing the numerous administrative functions of hospital-based physician groups to anesthesia practices, allowing anesthesiologists and nurse anesthetists more time to provide patient care. Pediatrix also encourages its physicians to use aggregated clinical data to conduct ongoing research, education and collaborative initiatives to improve patient care.
"Demand for anesthesia services has been increasing in recent years, and there's a need for anesthesia practices to become more efficient, and for physicians and CRNAs to find ways to focus their energies on an increasing number of complex procedures," said Dr. Scheidlinger of FAA. "We're excited to be a part of Pediatrix and sharing our mutual commitment to operational excellence."
Investor Conference Call
Pediatrix Medical Group, Inc. will host an investor conference call to discuss the Fairfax Anesthesiology Associates transaction at 11 a.m. Eastern Time today. The conference call Webcast may be accessed from the Company's website, www.pediatrix.com. A telephone replay of the conference call will be available from 2:30 p.m. Eastern Time today through midnight Eastern Time September 18, 2007 by dialing 800-475-6701, access code 886129. The replay will also be available at www.pediatrix.com.
Pediatrix Medical Group, Inc. is the nation's leading provider of neonatal, maternal-fetal and pediatric physician subspecialty 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 950 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.
CONTACT: Pediatrix Medical Group, Inc. Bob Kneeley, 954-384-0175, ext. 5300 Director, Investor Relations email@example.com SOURCE: Pediatrix Medical Group, Inc.