MEDNAX acquires South Oakland Anesthesia Associates

MEDNAX, Inc., (NYSE: MD) today announced the acquisition of South Oakland Anesthesia Associates, P.C., a physician group practice that provides anesthesia care and pain management services at three hospitals, four ambulatory surgery centers, one eye center, and four pain management centers throughout Oakland, Wayne and Macomb counties in Michigan. The practice will become part of MEDNAX's American Anesthesiology division and is the first Michigan-based practice to join the division, which now consists of 16 practices throughout eight states.

South Oakland Anesthesia Associates was established in 1967 and is a private group practice that employs 73 anesthesiologists that provide services across a wide spectrum of subspecialty areas, including orthopaedic, neurosurgical, pediatric, obstetric, cardiac, trauma, and critical care as well as acute and chronic pain medicine. The physicians practice in the anesthesia care-team model, which includes both residents and anesthetists.

"We are looking forward to partnering with a national group practice that will provide us with the resources we need to expand our services, and continue improving the quality of care we provide our patients," said Rhonda Marvar, M.D., who will serve as medical director for the American Anesthesiology practice. "We believe American Anesthesiology's research, education and clinical initiatives, along with its back-office infrastructure and administrative support will provide us with long-term stability in an uncertain healthcare environment."

South Oakland physicians serve as the faculty for the Beaumont Health System residency program in anesthesiology. The fully accredited residency program consists of 24 residents over four years. The department's demonstrated focus on teaching and research is well-aligned with MEDNAX's commitment to leadership in clinical quality, research and education.

"Being part of a national medical group practice offers collaborative opportunities to develop and exchange best practices that will positively impact patient care," said James D. Grant, M.D. who serves as the health system chair for the Department of Anesthesiology at Beaumont Health System.

The physicians joining as a result of this transaction will now be part of MEDNAX's American Anesthesiology division, which consists of more than 1,350 anesthesia providers, including more than 570 physicians and 780 anesthetists practicing in North Carolina, Florida, Georgia, Michigan, New Jersey, Tennessee, Texas, Virginia and, with administrative offices in Sunrise, Fla. and Raleigh, N.C.

This practice was acquired for cash and the transaction is expected to be immediately accretive to earnings. No additional terms of the transactions were disclosed.

With this acquisition, 14 physician group practices have become part of MEDNAX in 2012, seven as part of American Anesthesiology, and seven as part of Pediatrix Medical Group.