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.
    
    
      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.
    
    
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