FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--MEDNAX, Inc. (NYSE:MD), the national medical group specializing in neonatal, anesthesia, maternal-fetal, pediatric cardiology, and other pediatric physician services, today announced the signing of a definitive agreement to acquire MedData, Inc., a rapidly-growing provider of revenue cycle management services, including professional and facility coding, billing and collections, as well as an industry leading early out/patient pay solution, to emergency department, hospitalist, and other physician specialty groups, as well as to hospitals.
Founded in 1980, MedData has emerged as a leading innovator in technology- and offshore-enabled revenue cycle management, with a suite of outsourced services targeted at the intersection of reimbursement and patient engagement and satisfaction. The company’s “patient-focused” approach has generated proven results for its clients, while its distinctive combination of onshore and offshore capabilities provides efficiency and additional scalability as the company continues to grow rapidly. Driven by its proven outcomes and customer-focused approach, MedData has generated compound annual revenue growth of more than 25% since 2007, to a current run rate of approximately $65 million. Today, the company serves more than 3,000 physicians at 700 facilities across 43 states.
“This transaction marks an important step in our strategic growth,” said Roger J. Medel, M.D., Chief Executive Officer of MEDNAX. “We believe it will provide us with a very attractive platform through which to provide management services to facilities and physician groups beyond our existing footprint, a capability we anticipate to grow in demand as reimbursement structures continue to evolve. Having worked with MedData for several years, we recognized the value of this organization and the services it provides. Just as importantly, MedData’s service offerings and client base are very complementary to our own core capabilities and physician specialties, and this combination should thus allow us to expand our offerings for our existing hospital relationships and to build new relationships with unaffiliated hospitals and physicians.”
“We’re extremely excited about what this means for our business,” said Ann Barnes, Chief Executive Officer of MedData. “MEDNAX is committed to helping MedData build an enhanced services platform and expand our presence across the healthcare landscape in a meaningful way. More than ever, we will be driving revenue cycle management solutions that help improve our clients’ business now and in the future.”
The transaction is expected to close in the third quarter of 2014, subject to regulatory approvals. This will be a cash transaction and is expected to be accretive to earnings, after non-cash amortization expense and interest expense.
ABOUT MEDDATA
MedData, Inc. is one of the nation’s leading providers of a range of patient-focused medical revenue cycle management services including billing, coding, collections, and patient satisfaction. For more than 30 years, the Company has been providing innovative billing solutions to the medical community and serving millions of patients across numerous medical specialties. MedData currently serves more than 3,000 physicians at 700 facilities across 43 states from its headquarters in Brecksville, OH, as well as from offices in Grand Rapids, MI, Roseville, CA, Bellevue, WA, and Peoria, IL. To learn more about MedData’s patient-focused medical revenue cycle management solutions, please visit www.meddata.com.
ABOUT MEDNAX
MEDNAX, Inc. is a national medical group that comprises the nation's leading providers of neonatal, anesthesia, maternal-fetal and pediatric medical and surgical subspecialty services. The Company is reshaping the delivery of care within its specialties and subspecialties using evidence-based tools, continuous quality initiatives and clinical research to enhance patient outcomes and provide high-quality, cost-effective care. Pediatrix Medical Group, a division of MEDNAX, was founded in 1979 and includes neonatal physicians who provide services at more than 360 neonatal intensive care units, and collaborate with affiliated maternal-fetal medicine, pediatric cardiology, pediatric critical care and physician subspecialists to provide a clinical care continuum. Pediatrix is also the nation's largest provider of newborn hearing screens. American Anesthesiology, a division of MEDNAX, was established in 2007 and includes more than 2,150 anesthesiologists and advanced practitioners who provide anesthesia care to patients in connection with surgical and other procedures as well as pain management. MEDNAX, through its affiliated professional corporations, employs approximately 2,500 physicians in 34 states and Puerto Rico. Additional information is available at www.mednax.com.
Certain statements and information in this press release may be deemed to contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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. 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 MEDNAX’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 MEDNAX 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 MEDNAX’s most recent Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q, including the sections entitled “Risk Factors”, as well MEDNAX’s current reports on Form 8-K, filed with the Securities and Exchange Commission.
