Pediatrix Announces Strategic Initiatives For Enhanced Shareholder Value Creation
Pediatrix Medical Group (NYSE: MD) announced a significant leadership change, with Executive Chair Mark S. Ordan returning as Chief Executive Officer, effective immediately. The transition aims to accelerate the company's transformational strategy focused on clinical excellence and strengthening hospital relationships.
The company has implemented several key initiatives in the past year, including transitioning to a hybrid revenue cycle management model, optimizing practice portfolios, divesting primary and urgent care clinics, and restructuring leadership. James D. Swift, M.D., who became CEO in January 2023, will assist during the transition.
Regarding financial outlook, Pediatrix expects to achieve the high end of its previously announced 2024 adjusted EBITDA range of $205-215 million, with potential to exceed this range. The company will announce its Q4 and full-year 2024 results on February 20, 2025.
Pediatrix Medical Group (NYSE: MD) ha annunciato un cambiamento significativo nella leadership, con il Presidente Esecutivo Mark S. Ordan che torna a ricoprire il ruolo di Amministratore Delegato, con effetto immediato. Questa transizione mira ad accelerare la strategia di trasformazione dell'azienda, focalizzata sull'eccellenza clinica e sul rafforzamento delle relazioni con gli ospedali.
Negli ultimi dodici mesi, l'azienda ha implementato diverse iniziative chiave, tra cui la transizione a un modello ibrido di gestione del ciclo di fatturazione, l'ottimizzazione dei portafogli pratici, la dismissione di cliniche di assistenza primaria e urgente, e la ristrutturazione della leadership. James D. Swift, M.D., che è diventato Amministratore Delegato a gennaio 2023, assisterà durante la transizione.
Per quanto riguarda le prospettive finanziarie, Pediatrix prevede di raggiungere il limite superiore della sua gamma di EBITDA rettificato per il 2024, precedentemente annunciata, di $205-215 milioni, con un potenziale superamento di questo intervallo. L'azienda annuncerà i risultati del quarto trimestre e dell'intero anno 2024 il 20 febbraio 2025.
Pediatrix Medical Group (NYSE: MD) anunció un cambio significativo en el liderazgo, con el Presidente Ejecutivo Mark S. Ordan regresando como Director Ejecutivo, con efecto inmediato. La transición tiene como objetivo acelerar la estrategia de transformación de la empresa, centrada en la excelencia clínica y el fortalecimiento de las relaciones con los hospitales.
La empresa ha implementado varias iniciativas clave en el último año, incluyendo la transición a un modelo híbrido de gestión del ciclo de ingresos, la optimización de carteras de prácticas, la desinversión en clínicas de atención primaria y urgente, y la reestructuración del liderazgo. James D. Swift, M.D., quien se convirtió en Director Ejecutivo en enero de 2023, asistirá durante la transición.
En cuanto a las perspectivas financieras, Pediatrix espera alcanzar el límite superior de su rango de EBITDA ajustado de 2024 previamente anunciado, de $205-215 millones, con el potencial de superar este rango. La empresa anunciará sus resultados del cuarto trimestre y del año completo 2024 el 20 de febrero de 2025.
Pediatrix Medical Group (NYSE: MD)는 Executive Chair Mark S. Ordan이 즉시 CEO로 복귀하는 중대한 리더십 변화를 발표했습니다. 이번 전환은 임상 우수성에 중점을 두고 병원 관계 강화를 목표로 하는 회사의 변혁 전략을 가속화하는 데 목적이 있습니다.
회사는 지난 한 해 동안 하이브리드 수익 주기 관리 모델로의 전환, 실무 포트폴리오 최적화, 기본 및 응급 진료 클리닉 매각, 리더십 재구성 등 여러 주요 이니셔티브를 시행했습니다. 2023년 1월에 CEO가 된 James D. Swift, M.D.는 전환 기간 동안 도움을 줄 것입니다.
재무 전망과 관련하여, Pediatrix는 기존에 발표된 2024년 조정 EBITDA 범위인 $205-215백만 달러의 상한에 도달할 것으로 예상하며, 이 범위를 초과할 잠재력도 있습니다. 회사는 2025년 2월 20일에 4분기 및 전체 연도 2024 결과를 발표할 예정입니다.
Pediatrix Medical Group (NYSE: MD) a annoncé un changement significatif de direction, avec le Président Exécutif Mark S. Ordan revenant immédiatement au poste de Directeur Général. Cette transition vise à accélérer la stratégie de transformation de l'entreprise, axée sur l'excellence clinique et le renforcement des relations avec les hôpitaux.
Au cours de l'année écoulée, l'entreprise a mis en œuvre plusieurs initiatives clés, notamment la transition vers un modèle hybride de gestion du cycle de revenus, l'optimisation des portefeuilles de pratiques, la cession de cliniques de soins primaires et d'urgence, et la restructuration de la direction. James D. Swift, M.D., qui est devenu Directeur Général en janvier 2023, assistera durant la transition.
Concernant les prévisions financières, Pediatrix s'attend à atteindre le haut de sa fourchette de l'EBITDA ajusté pour 2024 précédemment annoncée de 205 à 215 millions de dollars, avec un potentiel de dépassement. L'entreprise annoncera ses résultats pour le quatrième trimestre et l'année entière 2024 le 20 février 2025.
Pediatrix Medical Group (NYSE: MD) gab einen bedeutenden Führungswechsel bekannt, bei dem Vorsitzender Mark S. Ordan sofort als CEO zurückkehrt. Der Übergang zielt darauf ab, die Transformationsstrategie des Unternehmens, die auf klinischer Exzellenz und der Stärkung der Beziehungen zu Krankenhäusern fokussiert ist, zu beschleunigen.
Das Unternehmen hat im vergangenen Jahr mehrere wichtige Initiativen umgesetzt, darunter den Übergang zu einem hybriden Erlöszyklusmanagementmodell, die Optimierung von Praxisportfolios, den Verkauf von Primär- und Notfallkliniken sowie die Umstrukturierung der Führung. James D. Swift, M.D., der im Januar 2023 CEO wurde, wird während des Übergangs Unterstützung leisten.
Was die Finanzprognose betrifft, so erwartet Pediatrix, dass sie das obere Ende der zuvor angekündigten bereinigten EBITDA-Spanne für 2024 von 205-215 Millionen USD erreichen wird, mit der Möglichkeit, diesen Bereich zu überschreiten. Das Unternehmen wird seine Ergebnisse für das vierte Quartal und das Gesamtjahr 2024 am 20. Februar 2025 bekannt geben.
- Expected to exceed 2024 adjusted EBITDA guidance of $205-215 million
- Strategic restructuring initiatives implemented to improve operating efficiency and profitability
- Renewed focus on core hospital-based services and maternal fetal medicine
- Leadership instability with CEO change after less than one year
- Divestment of primary and urgent care clinics indicating business segment challenges
Insights
The leadership transition and strategic refocus at Pediatrix represents a pivotal shift in corporate direction. Mark Ordan's return as CEO, given his proven track record in healthcare turnarounds, signals a deliberate move to accelerate value creation. His previous tenure (2020-2022) demonstrated success in restructuring during challenging healthcare market conditions.
The company's strategic initiatives are showing promising early results, with
The market has historically valued pure-play hospital service providers at higher multiples than diversified healthcare service companies. This strategic realignment, emphasizing hospital relationships and maternal-fetal medicine leadership, positions Pediatrix to potentially capture higher valuation multiples.
The strategic pivot to strengthen hospital relationships and focus on physician practices represents a return to Pediatrix's core strengths in specialized medical services. The company's divestment of primary/urgent care clinics streamlines operations and reduces operational complexity, potentially leading to improved margins and more efficient capital allocation.
The hybrid revenue cycle management model implementation is particularly noteworthy as it can significantly impact cash flow efficiency and reduce administrative costs. Healthcare companies that successfully optimize revenue cycle management typically see a
Market dynamics in hospital-based physician services remain favorable, with ongoing hospital staffing challenges creating opportunities for established players like Pediatrix. The company's renewed focus on clinical excellence and hospital partnerships could strengthen its competitive position in key markets.
Executive Chair Mark S. Ordan to Return as Chief Executive Officer
Company Redoubles Strategic Focus on Physician Practices and Hospital and Health System Relationships
In the past year, led by Mr. Ordan and the Board of Directors, the Company has instituted a number of key initiatives designed to enable it to better execute on its core mission and drive operating efficiency and profitability, including moving to a hybrid revenue cycle management model, optimizing its portfolio of practices, divesting its primary and urgent care clinics, and restructuring its leadership team.
Guy Sansone, Lead Independent Director, commented: “We see great opportunity ahead for Pediatrix, and based on the steps the Company has taken, it is now time to accelerate the work to realize that potential. Mark has spent his career transforming business operations, including at Pediatrix where he led the Company’s restructuring beginning in 2020, during a period of enormous turbulence and change across the healthcare landscape. More recently, Mark again stepped in to help execute on our strategy and drive our return to hospital- and hospital-patient focused activities. Now, we need to refocus Pediatrix around a successful approach to creating superior value for shareholders and other stakeholders, and ensure that our entire team is pulling in that direction. We couldn’t be more pleased that Mark has agreed to step into the Chief Executive Officer role once again.”
Mr. Ordan commented: “I am honored to return as CEO, and excited to work with our extraordinary team to make sure that our patients are at the center of everything that we do. This requires steady focus on our renowned practices and a very close and collaborative working relationship with our hospital and health system partners. We will devote all of our time and resources to strengthening our relationships with them and concentrating on patient-centric activities.”
Mr. Sansone added, “We are grateful to Jim for the work that he has done over his many years at Pediatrix, and we wish him the best.”
The Company previously announced 2024 outlook of expected adjusted EBITDA (net income (loss) before interest, taxes, depreciation and amortization, transformational and restructuring related expenses, impairment losses, and loss on disposal of businesses) in a range of
Mark S. Ordan Bio
A highly accomplished business leader with significant and successful turnaround experience, Mr. Ordan has led the turnaround of several complex, public companies which – in addition to Pediatrix – include healthcare companies such as Sunrise Senior Living, Quality Care Properties, and ManorCare. Mr. Ordan served as CEO of Pediatrix from July 2020 to December 2022, during which he led the Company’s restructuring. He was Executive Chair of the Board of Directors of Pediatrix from January 2023 to June 2023 and Chair of the Board from July 2023 to October 2024. He has served as Executive Chair of the Board since October 2024, leading the strategic redirection of the Company over the past year to focus on its core hospital-based strength and its leadership in maternal fetal medicine.
Prior to joining Pediatrix, Mr. Ordan founded and served as CEO of Quality Care Properties after serving as founding CEO of Washington Prime Group. Mr. Ordan also held a number of CEO roles including at Sunrise Senior Living, The Mills Corporation, and Balducci’s, and was founder and CEO of Fresh Fields Markets, which he later merged with Whole Foods Markets.
Mr. Ordan serves on the Board of Directors of The Carlyle Group and is the Board Chair of the
ABOUT PEDIATRIX MEDICAL GROUP
Pediatrix® Medical Group, Inc. (NYSE:MD) is a leading provider of physician services. Pediatrix-affiliated clinicians are committed to providing coordinated, compassionate and clinically excellent services to women, babies and children across the continuum of care, both in hospital settings and office-based practices. Specialties include obstetrics, maternal-fetal medicine and neonatology. The group’s high-quality, evidence-based care is bolstered by significant investments in research, education, quality-improvement and safety initiatives. The physician-led company was founded in 1979 as a single neonatology practice and today provides its highly specialized and often critical care services through approximately 4,500 affiliated physicians and other clinicians. To learn more about Pediatrix, visit www.pediatrix.com or follow us on Facebook, Instagram, LinkedIn and the Pediatrix blog. Investment information can be found at www.pediatrix.com/investors.
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 (the “Securities Act”), 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 the Company’s expectations with respect to its full year 2024 earnings, the Company’s 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 the Company’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 the Company 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 the Company’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 the Company’s current reports on Form 8-K, filed with the Securities and Exchange Commission, and include the impact of the Company’s practice portfolio management plans and whether the Company is able to achieve the expected favorable impact to Adjusted EBITDA therefrom; the impact of the Company’s termination of its then third-party revenue cycle management provider and transition to a hybrid revenue cycle management model with one or more new third-party service providers, including any transition costs associated therewith; the impact of surprise billing legislation; the effects of economic conditions on the Company’s business; the effects of the Affordable Care Act and potential healthcare reform; the Company’s relationships with government-sponsored or funded healthcare programs, including Medicare and Medicaid, and with managed care organizations and commercial health insurance payors; the Company’s ability to comply with the terms of its debt financing arrangements; the impact of the divestiture of the Company’s anesthesiology and radiology medical groups and its primary and urgent care practices; the impact of management transitions; the timing and contribution of future acquisitions or organic growth initiatives; the effects of share repurchases; and the effects of the Company’s transformation initiatives, including its reorientation on, and growth strategy for, its pediatrics and obstetrics business.
Pediatrix Medical Group, Inc. Reconciliation of Net Loss to Forward-Looking Adjusted EBITDA (in thousands) (Unaudited) |
||||||||
|
||||||||
|
Year Ended
|
|||||||
|
|
|
|
|
|
|
||
Net loss |
|
$ |
(110,315 |
) |
|
$ |
(103,015 |
) |
Interest expense |
|
|
40,559 |
|
|
|
40,559 |
|
Income tax provision |
|
|
1,990 |
|
|
|
4,690 |
|
Depreciation and amortization expense |
|
|
31,800 |
|
|
|
31,800 |
|
Transformational and restructuring related expenses |
|
|
48,000 |
|
|
|
48,000 |
|
Goodwill and long-lived asset impairments |
|
|
182,034 |
|
|
|
182,034 |
|
Loss on disposal of businesses |
|
|
10,932 |
|
|
|
10,932 |
|
Adjusted EBITDA |
|
$ |
205,000 |
|
|
$ |
215,000 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250113272264/en/
Charles Lynch
Senior Vice President, Finance and Strategy
954-384-0175, x 5692
charles.lynch@pediatrix.com
Source: Pediatrix Medical Group, Inc.
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