Pediatrix Acquires Large Anesthesia Group in Raleigh, NC
October 01 2008 - 6:45AM
Business Wire
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. About Pediatrix 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�.
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