Mednax Sells American Anesthesiology

Mednax Sells American Anesthesiology

by | May 11, 2020 4:26 pm | Physician Medical Groups

Deal making is getting more creative in the time of COVID-19. Mednax, Inc. (NYSE: MD) sold its anesthesiology group, American Anesthesiology, Inc., to North American Partners in Anesthesia (NAPA), a portfolio company of American Securities, for $50 million. In an 8k filing on May 6, Mednax added a few terms to that $50 million price. It retained the accounts receivable of American Anesthesiology, which, net of various other working capital items, which were approximately $110 million as of March 31, 2020. It also retained a contingent economic interest in the success of NAPA with a value ranging from $0 to $250 million based upon the multiple of invested capital returned to NAPA’s owners... Read More »

The MACRA Effect Keeps Building

by | Mar 23, 2017 2:55 pm | Managed Care, Physician Medical Groups, Private Equity

Last year, the Centers for Medicare and Medicaid Services asked for comments and then rolled out the final rules on the implementation of the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA). Many industry observers predicted the rules would drive the majority of independent physician practices “right into the arms” of a local hospital, health system or other entity. Those predictions appear to be true. As of mid-March 2017, 46 acquisitions of physician practices have been announced, a 105% increase from the same period a year ago. Only one of the deals disclosed a price,  Optum’s (NYSE: UNH) $3.3 billion acquisition of Surgical Care Affiliates Inc. (NASDAQ:... Read More »
MEDNAX Moves into Radiology

MEDNAX Moves into Radiology

by | Feb 1, 2017 8:26 pm | Physician Medical Groups

It’s been a while since MEDNAX (NYSE: MD) surprised the healthcare industry with its $500 million acquisition of Virtual Radiologic Corporation (NASDAQ: VRAD). Since May 2015, in fact. Consider the wait over. The MEDNAX M&A juggernaut is rolling into the radiology arena. The acquisition of vRad added approximately 350 radiologists to MEDNAX’ payroll back then, at an average of $1.4 million per radiologist. It also added a telemedicine component, which was previously missing from MEDNAX’ dealings with hospitals on behalf of its anesthesiology and neonatology divisions. Essentially, vRad physicians read and interpret more than 5 million diagnostic imaging studies... Read More »

MEDNAX Makes 10

by | Aug 9, 2016 3:21 pm | Physician Medical Groups

MEDNAX (NYSE:MD) hit the big 10 in August 2016, with its tenth acquisition of the year. The serial acquirer picked up privately-held Associated Anesthesiologists of Reno, P.C., the largest anesthesia practice in northern Nevada, offering anesthesia care across a broad range of subspecialties, including orthopedic, obstetric, pediatric and cardiac and critical care. MEDNAX continues to capitalize on anesthesiology practices’ need to become a part of a larger organization in order to meet the data and technology capabilities that hospitals are asking of them, and this purchase marks its sixth anesthesiology acquisition of the year. Outside of anesthesiology, MEDNAX acquired privately-held... Read More »

Q2:16 Results Defy Brexit and Other Uncertainties

by | Jul 18, 2016 1:52 pm | eHealth, Medical Devices, Physician Medical Groups

You’ve seen the headlines: Global mergers and acquisitions slid in the first half of 2016, as did the combined value. The number of middle market deals completed in the second quarter fell to levels not seen since 2009. Buyers are walking away from targets that could be affected by sudden changes in tax regulations. It’s all thanks to Brexit and the U.S. presidential election. Then there’s the healthcare market. Deal volume actually increased compared with the previous quarter in 2016, and the same quarter a year ago. Deal volume for Q2:16 reached 396 announced transactions, up 11% versus Q1:16’s 358 deals, and 15% higher than last year’s 344 deals in the second quarter. For the first half... Read More »