MEDNAX acquires Piedmont Neonatology

MEDNAX, Inc., (NYSE:MD) today announced the acquisition of Piedmont Neonatology, P.C., a private neonatal physician group practice based in Greensboro, N.C. The practice will become part of MEDNAX's Pediatrix Medical Group division, a national group practice consisting of the nation's leading neonatal, maternal-fetal medicine, pediatric cardiology, and other pediatric specialty physicians.

Piedmont Neonatology consists of six neonatologists who provide a wide spectrum of services including neonatal intensive care; delivery room; and maternal, newborn nursery and emergency department consults at Cone Health Women's Hospital. Physicians at Piedmont Neonatology have been providing services at Women's Hospital for more than 20 years. Women's Hospital is the first free-standing hospital in North Carolina dedicated to the care of women and newborns and has a Level III, 36-bed neonatal intensive care unit (NICU). The practice will also begin providing neonatal intensive care services at Alamance Regional Medical Center, beginning on July 1.

"Joining a national group practice was especially appealing as we began to see the impact of healthcare reform on physician groups. Becoming part of Pediatrix Medical Group will reduce our administrative burden and provide leadership in clinical research, education and quality so that we can further develop innovative approaches to neonatal care and enhance the services we provide," said McCrae Smith, M.D., who will serve as corporate medical director for the practice. "We also look forward to continuing our work with the Perinatal Quality Collaborative of North Carolina and other groups to focus on patient outcomes and increase the value of perinatal healthcare in the state."

The practice was acquired for cash and the transaction is expected to be immediately accretive to earnings. No additional terms of the transaction were disclosed.