MEDNAX acquires Neonatal Medical Associates

MEDNAX, Inc., (NYSE: MD) today announced the acquisition of a neonatal physician group in Long Beach, CA.

“As part of Pediatrix we will be joining a group of physicians who share our vision and dedication for providing the highest level of care to our neonatal patients through continuous research, education and participation in clinical quality improvement initiatives.”

The practice, Neonatal Medical Associates, Inc., consists of 14 physicians who staff the Level III neonatal intensive care unit (NICU) at Miller Children's Hospital in Long Beach. Miller Children's Hospital has the largest NICU in Los Angeles, Orange and San Diego counties. The group also provides neonatal services at two other southern California hospitals - St. Mary Medical Center in Long Beach and Orange Coast Memorial Medical Center in Fountain Valley. Annual NICU patient volume exceeds 30,000 days.

The physicians will practice as part of MEDNAX's Pediatrix Medical Group, a national medical group that comprises the nation's leading provider of neonatal, maternal-fetal medicine and pediatric cardiology physicians, as well as other pediatric subspecialists.

"In the current era of healthcare reform, we were looking for a long-term partner to not only provide a stronger sense of sustainability and support for our practice, but that could also help further improve outcomes for our patients while strengthening our ability to grow the services we provide to the families in the communities we serve," said Arthur Strauss, M.D., who will serve as Pediatrix's medical director for the practice. "As part of Pediatrix we will be joining a group of physicians who share our vision and dedication for providing the highest level of care to our neonatal patients through continuous research, education and participation in clinical quality improvement initiatives."

MEDNAX paid cash for the practice, and the transaction is expected to be immediately accretive to its earnings. No additional terms of the transaction were disclosed.

With this acquisition, 15 physician group practices became part of Pediatrix Medical Group and American Anesthesiology in 2010.