Pediatrix Acquires Atlanta Anesthesia Group Practice

  
    
  
  
    
      Pediatrix Medical Group, Inc. (NYSE: PDX) has completed the acquisition 
      of Georgia Perioperative Consultants, LLC, an anesthesia physician group 
      practice that provides services to patients treated at facilities in the 
      Atlanta metropolitan area.
    
    
      Georgia Perioperative consists of 28 physicians and 66 certified 
      registered nurse anesthetists (CRNAs) and anesthesia assistants who 
      practice at Atlanta’s Piedmont Hospital, 
      Piedmont Fayette Hospital, and five ambulatory surgery centers in the 
      Atlanta area.
    
    
      The transaction is Pediatrix’s second 
      anesthesia group practice acquisition and advances the Company’s 
      strategy of building a national group practice of anesthesia services to 
      parallel its neonatal, maternal fetal, pediatric cardiology and 
      pediatric intensivist physician services. Pediatrix’s 
      first anesthesia acquisition, Fairfax Anesthesiology Associates, based 
      in northern Virginia, was completed in September 2007.
    
    
      The physicians at Georgia Perioperative joined Pediatrix for a variety 
      of reasons, including the opportunity to collaborate with anesthesia 
      practices across the United States to improve patient care, as well as 
      to gain needed administrative support to manage anticipated growth.
    
    
      “We expect that as part of Pediatrix we’ll 
      enjoy some relief from many of the pressures on the business side of our 
      practice, and that we’ll play a role in 
      helping to shape the future of anesthesia services within this 
      organization,” said Jeffrey D. Shapiro, M.D., 
      President of Georgia Perioperative Consultants. “We’re 
      excited about building on Pediatrix’s 
      approach to clinical quality and best practices and working with other 
      groups to transfer those skills to anesthesia.”
    
    
      The Georgia Perioperative practice was formed in 1970 and has worked 
      with Piedmont Hospital, a 481-bed tertiary care center, to provide 
      anesthesia services since then. The practice has grown with the hospital 
      system and the surrounding communities. Piedmont Fayette is a 143-bed 
      acute care community hospital located in Fayetteville, GA. Pediatrix 
      physicians staff the neonatal intensive care units at both hospitals.
    
    
      “With Georgia Perioperative, and Fairfax 
      Anesthesiology, we’re demonstrating that we 
      have the right model to attract leading anesthesia practices, in growing 
      markets, to help us to build a national practice within this specialty,” 
      said Roger J. Medel, M.D., Chief Executive Officer of Pediatrix. “As 
      we execute on our strategy, we will be very deliberate in delivering 
      added value to those physicians who join us, to our hospital partners 
      and ultimately to our patients.”
    
    
      Georgia Perioperative will be integrated into American Anesthesiology, a 
      division of Pediatrix, which will apply Pediatrix’s 
      core competency of managing the numerous administrative functions of 
      hospital-based physician groups to anesthesia practices, allowing 
      anesthesiologists, nurse anesthetists and anesthesia assistants 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.
    
    
      Pediatrix paid cash for the practice, which is expected to contribute 
      annual earnings of approximately three cents per share after considering 
      amortization expense and foregone investment income. The estimated 
      earnings are based on Georgia Perioperative’s 
      current operations and does not include potential improvements under 
      Pediatrix’s processes. Additional terms of 
      the transaction were not disclosed.
    
    
      Pediatrix now has more than 200 anesthesia providers, including more 
      than 80 anesthesiologists and more than 120 CRNAs and anesthesia 
      assistants providing patient care in Georgia and Virginia.
    
    
      The Company remains focused on expanding its historical physician 
      services around newborn, maternal fetal and pediatric subspecialty care, 
      as well as building its anesthesia physician services. In addition to 
      Georgia Perioperative, Pediatrix has acquired one neonatal, one maternal 
      fetal and three pediatric cardiology group practices, during 2008.
    
    
      Separately, the Company announced that it has completed the $100 million 
      share repurchase program that had been authorized in late May.
    
    
      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 their 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 1,100 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, 
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      are made as of the date hereof, and Pediatrix undertakes no duty to 
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      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”.