October 1, 2008
Pediatrix Acquires Large Anesthesia Group in Raleigh, NC
American Anesthesiology, Inc., a subsidiary of Pediatrix Medical Group, Inc. (NYSE:PDX), has completed the acquisition of Critical Health Systems of North Carolina, P.C., a physician group practice based in Raleigh with more than 250 anesthesiologists and certified registered nurse anesthetists. The transaction brings the number of anesthesia providers practicing at American Anesthesiology to more than 450.
A total of 61 anesthesiologists and 191 certified registered nurse anesthetists (CRNA) provide services under CHS' patient care team model at five acute-care hospitals, three ambulatory surgery centers and two pain management centers located throughout the growing Raleigh metropolitan area.Physicians and nurse anesthetists provide anesthesia services at Rex Hospital, a 433-bed acute care facility that's part of the University of North Carolina Health Care system, 186-bed Duke Raleigh Hospital, which is part of the Duke University Health System, two WakeMed system hospitals, including the 515-bed WakeMed Raleigh Campus and the 114-bed WakeMed Cary Hospital, and Wilson Medical Center, a 317-bed acute-care facility in Wilson, NC.
CHS also provides patient services at the WakeMed North Healthplex, Rex Surgery Center of Cary and Raleigh's Blue Ridge Surgery Center, and staffs the Rex Pain Management Center and Duke Raleigh Hospital Pain Center.
"We've established a very attractive practice environment that has helped us to attract and retain talented clinical professionals, both anesthesiologists and nurse anesthetists," said Eric W. Mason, M.D., President of Critical Health Systems of North Carolina, who will serve as American Anesthesiology's Medical Director in Raleigh. "Working with other groups that are part of American Anesthesiology, we'll have the opportunity to collaborate, share clinical information and identify ways to improve patient care in the future. There are opportunities for us to expand within our community and as part of American Anesthesiology we can do so in ways that ensure that we maintain our focus on patient care."
Critical Health Systems of North Carolina traces its patient services roots in Raleigh to the late 1960s. The practice was instrumental in forming the Raleigh School of Nurse Anesthesia in 1990, in collaboration with several Raleigh-area hospitals and the University of North Carolina, Greensboro. Many of the practice's CRNAs are graduates of the school.
"We have a long history of growth in Raleigh as a result of our anesthesiologists and certified registered nurse anesthetists working together, dedicated to quality patient care and patient safety," said Paul R. Woodard, M.D., Secretary and Treasurer of Critical Health Systems of North Carolina and President of the Board of Directors of the Raleigh School of Nurse Anesthesia. "We look forward to bringing Pediatrix's successful approach to research, education and ongoing clinical quality initiatives to our anesthesia care model in Raleigh."
The acquisition also includes a comprehensive business infrastructure that will complement American Anesthesiology's existing administrative resources. The group at CHS has evolved from a small billing office to more than 90 employees and will form the nucleus of American Anesthesiology's first regional office.
Pediatrix paid cash for Critical Health Systems, and the expected earnings contribution is approximately 10 cents per share on an annualized basis after considering amortization and interest expense. The estimated earnings contribution is based on CHS' current operations and does not include potential improvements under Pediatrix's processes. Additional terms of the transaction were not disclosed.
American Anesthesiology also includes an anesthesia group practice in Fairfax, Virginia, which was acquired in September 2007, and a practice in Atlanta, Georgia, that was acquired in July 2008.
Investor conference call
Pediatrix Medical Group, Inc. will host an investor conference call to discuss the Raleigh acquisition, as well as other corporate developments, at 10 a.m. (EDT) 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 noon (EDT) today through midnight (EDT) October 15, 2008, by dialing 800-475-6701, access code 963245. 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 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 250 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 1,200 physicians in 32 states and Puerto Rico. Pediatrix is also the nation's largest provider of newborn hearing screens. 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".