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MEDNAX Forges Alliance for Better Health Services in Texas

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MEDNAX, Inc. (MD - Free Report) recently announced an affiliation with Alfredo Gei MD, P.A., a private maternal-fetal medicine practice located in Houston. However, terms of this cash transaction were not disclosed.

With this deal, MEDNAX would be able to ramp up the services it provides at Texas via its network of affiliated physicians in multiple specialties, such as newborn hearing screen, neonatology, developmental pediatrics, maternal-fetal medicine, obstetric hospitalist, pediatric critical care, pediatric hospitalist, pediatric ophthalmology, pediatric otolaryngology, anesthesiology and radiology et al. This collaboration is expected to be immediately accretive to its earnings.

Notably, Alfredo Gei MD would be able to gain traction from MEDNAX’s national network, which is necessary for the team to be consistent in growth and provide advanced care to patients. Management believes that MEDNAX’s nationally acclaimed research and initiatives will strengthen Alfredo Gei MD’s practice, render improved patient services and give it a chance to add value to its hospital partners.

The company’s allied physician practices deliver exceptional perinatal care in Houston and its physician network caters to maternal-fetal medicine services to 12 area hospital partners.

MEDNAX has been constantly making efforts to boost its portfolio over the last few quarters. In March, it announced its affiliation to Georgia Neonatology, LLC, a private neonatology practice located in Athens, GA. This agreement added to MEDNAX’s wide array of services in Georgia via its network of associated physicians across various specialties including pain management, anesthesiology, maternal-fetal medicine, neonatology, newborn hearing screen, obstetric hospitalist, pediatric hospitalist and radiology.

Last month, the company declared its affiliation with Central Coast Perinatal Medical Group, Inc., with which it was able to drive its services in California through its affiliated network of physicians ranging over various multiple specialties, including maternal-fetal medicine, neonatology, newborn hearing screen, obstetric hospitalist, pediatric cardiology, pediatric critical care, pediatric hospitalist and radiology.

MEDNAX has always been active when it comes to catalyzing its inorganic growth profile. Apart from several tie-ups, the company has acquired several organizations to enrich its capabilities. During 2018, it acquired nine physician group practices including five radiology, two neonatology and two pediatric subspecialty practices. The company expects to close several purchases in women and children services in the upcoming quarters. We believe, all these strategic initiatives bode well for the company’s growth.

Shares of this Zacks Rank #4 (Sell) company have plunged 42.9% in a year’s time against its industry’s growth of 5.3%. what can rebound the shares.



Key Picks

Investors interested in the medical sector can take a look at some better-ranked stocks like WellCare Health Plans, Inc. , HCA Healthcare, Inc. (HCA - Free Report) and Molina Healthcare, Inc (MOH - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.

WellCare Health offers managed care services to government-sponsored health care programs. The company pulled off average positive surprise of 13.52% in the preceding four quarters. It holds a Zacks Rank #2 (Buy).

HCA Healthcare provides health care services. In the last four quarters, the company delivered average beat of 15.74%. The company carries a Zacks Rank of 2.

Molina Healthcare is a multi-state healthcare organization. In the trailing four quarters, the company came up with average beat of 88.17%. It sports a Zacks Rank #1 (Strong Buy).

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