by Gus Iversen
, Editor in Chief | June 05, 2020
MEDNAX today confirmed that it has been reviewing strategic alternatives for its radiology medical group, MEDNAX Radiology Solutions.
The decision is part of a broader restructuring plan being undertaken by the company, including a return to its previous name, Pediatrix Medical Group.
“The initiatives we are outlining today signify our return to our roots as a leading provider of women’s and children’s care, and are a culmination of our efforts to concentrate on our core practice areas and refine our strategy for growth and profitability,” said Dr. Roger J. Medel, chief executive officer of MEDNAX. “As Pediatrix Medical Group, we will become an organization wholly dedicated to women’s and children’s services, and one that will continue to drive innovations to improve the quality and experience of patient care for years to come.”
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Prior to the onset of the COVID-19 pandemic, MEDNAX had been in advanced discussions to divest this organization and plans to move forward with a divestiture, when market conditions are appropriate. MEDNAX intends to apply the proceeds from a sale of MEDNAX Radiology Solutions towards debt reduction.
As part of the company’s 2020 financial expectations that MEDNAX provided prior to the impact of the COVID-19 pandemic, MEDNAX Radiology Solutions was expected to contribute approximately $550 million and $90 million in revenue and Adjusted EBITDA, respectively, to the company’s operating results for the year.
MEDNAX does not intend to provide further public comments on this strategic alternatives process.