MEDNAX, INC. (MD, Financial) filed Quarterly Report for the period ended 2009-06-30.
Mednax Inc. formerly Pediatrix Medical Group Inc. is a healthcare services company that focuses on physician services for newborn maternal-fetal pediatric subspecialty and anesthesia care. The company through its subsidiaries provides these services in the United States and Puerto Rico. In addition MEDNAX engages in clinical research monitoring clinical outcomes and implementing clinical initiatives. MEDNAX, INC. has a market cap of $2.34 billion; its shares were traded at around $51.08 with a P/E ratio of 16.2 and P/S ratio of 2.2.
Practice salaries and benefits increased $41.1 million, or 27.2%, to $191.8 million for the three months ended June 30, 2009, as compared to $150.7 million for the same period in 2008. This $41.1 million increase was attributable to increased costs of $33.2 million associated with new physicians and other staff to support acquisition-related growth and increased costs of $7.9 million related to growth at our existing units. Practice salaries and benefits for the three months ended June 30, 2009 includes a reduction in medical malpractice insurance costs of $1.8 million, net of the related impact on incentive compensation, related to favorable retrospective claim adjustments on certain historical policy years.
General and administrative expenses include all billing and collection functions and all other salaries, benefits, supplies and operating expenses not specifically related to the day-to-day operations of our physician group practices. General and administrative expenses increased $5.3 million, or 17.0%, to $36.3 million for the three months ended June 30, 2009, as compared to $31.0 million for the same period in 2008. This increase of $5.3 million is attributable to $2.9 million of salaries, benefits and other general and administrative costs related to the overall growth of the Company and $2.4 million of salaries, benefits and other general and administrative costs specifically related to the Companys expansion into anesthesia services. General and administrative expenses as a percentage of net patient service revenue were 11.3% for the three months ended June 30, 2009, as compared to 12.0% for the same period in 2008.
Our net patient service revenue increased $120.4 million, or 23.9%, to $623.7 million for the six months ended June 30, 2009, as compared to $503.3 million for the same period in 2008. Of this $120.4 million increase, $99.6 million, or 82.7%, was attributable to revenue generated from acquisitions completed after December 31, 2007. Same-unit net patient service revenue increased $20.8 million, or 4.2%, for the six months ended June 30, 2009. The change in same-unit net patient service revenue was the result of increased revenue of $16.4 million from higher patient service volumes across our subspecialties and $4.4 million related to pricing and reimbursement factors. Increased revenue of $16.4 million from higher patient service volumes includes $4.4 million from a 1.4% increase in neonatal intensive care unit patient days and $12.0 million from volume growth in maternal fetal, pediatric cardiology, anesthesiology and other services, including hearing screens and newborn nursery services. Excluding the additional calendar day in February for the 2008 leap year, the increase in neonatal intensive care unit patient days was 1.9%. The net increase in revenue of $4.4 million related to pricing and reimbursement factors is primarily due to improved managed care contracting and the flow through of revenue from modest price increases, partially offset by a decrease in revenue caused by an increase in the percentage of our patients being enrolled in government-sponsored programs. Payments received from government-sponsored programs are substantially less than payments received from commercial insurance payors for equivalent services. Same units are those units at which we provided services for the entire current period and the entire comparable period.
Practice salaries and benefits increased $83.7 million, or 27.7%, to $385.8 million for the six months ended June 30, 2009, as compared to $302.1 million for the same period in 2008. This $83.7 million increase was attributable to increased costs of $65.3 million associated with new physicians and other staff to support acquisition-related growth and increased costs of $18.4 million related to growth at existing units. Practice salaries and benefits for the six months ended June 30, 2009 includes a reduction in medical malpractice insurance costs of $1.8 million, net of the related impact on incentive compensation, related to favorable retrospective claim adjustments on certain historical policy years.
General and administrative expenses include all billing and collection functions and all other salaries, benefits, supplies and operating expenses not specifically related to the day-to-day operations of our physician group practices. General and administrative expenses increased $12.2 million, or 20.0%, to $72.9 million for the six months ended June 30, 2009, as compared to $60.8 million for the same period in 2008. This increase of $12.2 million is attributable to $8.1 million of salaries, benefits and other general and administrative costs related to the overall growth of the Company and $4.1 million of salaries, benefits and other general and administrative costs specifically related to the Companys expansion into anesthesia services. General and administrative expenses as a percentage of net patient service revenue were 11.7% for the six months ended June 30, 2009, as compared to 12.1% for the same period in 2008.
Read the The complete ReportMD is in the portfolios of David Dreman of Dreman Value Management, Richard Pzena of Pzena Investment Management LLC.
Mednax Inc. formerly Pediatrix Medical Group Inc. is a healthcare services company that focuses on physician services for newborn maternal-fetal pediatric subspecialty and anesthesia care. The company through its subsidiaries provides these services in the United States and Puerto Rico. In addition MEDNAX engages in clinical research monitoring clinical outcomes and implementing clinical initiatives. MEDNAX, INC. has a market cap of $2.34 billion; its shares were traded at around $51.08 with a P/E ratio of 16.2 and P/S ratio of 2.2.
Highlight of Business Operations:
Our net patient service revenue increased $62.1 million, or 24.1%, to $319.8 million for the three months ended June 30, 2009, as compared to $257.7 million for the same period in 2008. Of this $62.1 million increase, $50.9 million, or 82.0%, was attributable to revenue generated from acquisitions completed after March 31, 2008. Same-unit net patient service revenue increased $11.2 million, or 4.4%, for the three months ended June 30, 2009. The change in same-unit net patient service revenue was the result of increased revenue of $10.2 million from higher patient service volumes across our subspecialties and $1.0 million related to pricing and reimbursement factors. Increased revenue of $10.2 million from higher patient service volumes includes $4.0 million from a 2.5% increase in neonatal intensive care unit patient days and $6.2 million from volume growth in maternal fetal, pediatric cardiology,Practice salaries and benefits increased $41.1 million, or 27.2%, to $191.8 million for the three months ended June 30, 2009, as compared to $150.7 million for the same period in 2008. This $41.1 million increase was attributable to increased costs of $33.2 million associated with new physicians and other staff to support acquisition-related growth and increased costs of $7.9 million related to growth at our existing units. Practice salaries and benefits for the three months ended June 30, 2009 includes a reduction in medical malpractice insurance costs of $1.8 million, net of the related impact on incentive compensation, related to favorable retrospective claim adjustments on certain historical policy years.
General and administrative expenses include all billing and collection functions and all other salaries, benefits, supplies and operating expenses not specifically related to the day-to-day operations of our physician group practices. General and administrative expenses increased $5.3 million, or 17.0%, to $36.3 million for the three months ended June 30, 2009, as compared to $31.0 million for the same period in 2008. This increase of $5.3 million is attributable to $2.9 million of salaries, benefits and other general and administrative costs related to the overall growth of the Company and $2.4 million of salaries, benefits and other general and administrative costs specifically related to the Companys expansion into anesthesia services. General and administrative expenses as a percentage of net patient service revenue were 11.3% for the three months ended June 30, 2009, as compared to 12.0% for the same period in 2008.
Our net patient service revenue increased $120.4 million, or 23.9%, to $623.7 million for the six months ended June 30, 2009, as compared to $503.3 million for the same period in 2008. Of this $120.4 million increase, $99.6 million, or 82.7%, was attributable to revenue generated from acquisitions completed after December 31, 2007. Same-unit net patient service revenue increased $20.8 million, or 4.2%, for the six months ended June 30, 2009. The change in same-unit net patient service revenue was the result of increased revenue of $16.4 million from higher patient service volumes across our subspecialties and $4.4 million related to pricing and reimbursement factors. Increased revenue of $16.4 million from higher patient service volumes includes $4.4 million from a 1.4% increase in neonatal intensive care unit patient days and $12.0 million from volume growth in maternal fetal, pediatric cardiology, anesthesiology and other services, including hearing screens and newborn nursery services. Excluding the additional calendar day in February for the 2008 leap year, the increase in neonatal intensive care unit patient days was 1.9%. The net increase in revenue of $4.4 million related to pricing and reimbursement factors is primarily due to improved managed care contracting and the flow through of revenue from modest price increases, partially offset by a decrease in revenue caused by an increase in the percentage of our patients being enrolled in government-sponsored programs. Payments received from government-sponsored programs are substantially less than payments received from commercial insurance payors for equivalent services. Same units are those units at which we provided services for the entire current period and the entire comparable period.
Practice salaries and benefits increased $83.7 million, or 27.7%, to $385.8 million for the six months ended June 30, 2009, as compared to $302.1 million for the same period in 2008. This $83.7 million increase was attributable to increased costs of $65.3 million associated with new physicians and other staff to support acquisition-related growth and increased costs of $18.4 million related to growth at existing units. Practice salaries and benefits for the six months ended June 30, 2009 includes a reduction in medical malpractice insurance costs of $1.8 million, net of the related impact on incentive compensation, related to favorable retrospective claim adjustments on certain historical policy years.
General and administrative expenses include all billing and collection functions and all other salaries, benefits, supplies and operating expenses not specifically related to the day-to-day operations of our physician group practices. General and administrative expenses increased $12.2 million, or 20.0%, to $72.9 million for the six months ended June 30, 2009, as compared to $60.8 million for the same period in 2008. This increase of $12.2 million is attributable to $8.1 million of salaries, benefits and other general and administrative costs related to the overall growth of the Company and $4.1 million of salaries, benefits and other general and administrative costs specifically related to the Companys expansion into anesthesia services. General and administrative expenses as a percentage of net patient service revenue were 11.7% for the six months ended June 30, 2009, as compared to 12.1% for the same period in 2008.
Read the The complete ReportMD is in the portfolios of David Dreman of Dreman Value Management, Richard Pzena of Pzena Investment Management LLC.
