Withdraws Prior First-Quarter and Preliminary
Full Year Outlook for 2020 Due to COVID-19 Impact
Amends Credit Facility
MEDNAX, Inc. (NYSE: MD), the national health solutions partner
specializing in neonatology, anesthesiology, radiology,
maternal-fetal medicine and other pediatric services, today
provided an update on its operations in response to the continued
spread of Coronavirus (COVID-19).
Due to the rapidly evolving environment and continued
uncertainties surrounding the impact of COVID-19 and the likelihood
that this impact may materially affect the Company’s near-term
financial performance, MEDNAX is withdrawing its previously
announced first quarter and preliminary full year outlook for
2020.
The Company’s January and February operating results were in
line with the outlook provided in MEDNAX’s fourth quarter earnings
announcement on February 20, 2020. During the month of March,
portions of the Company’s clinical operations have been materially
impacted by declines in patient volumes due to the evolving
pandemic.
Within its American Anesthesiology medical group, MEDNAX has
experienced a significant decline in the number of elective
surgeries at a number of the facilities where MEDNAX-affiliated
clinicians provide anesthesia services. Much of this decline has
been due to the closure of operating suites or facilities following
federal advisories to cancel non-urgent procedures and the
prohibition of such procedures by several states.
Within MEDNAX Radiology Solutions, orders for radiological
studies have declined by a meaningful amount from historically
normal levels, with much of this reduction focused in non-urgent
studies.
MEDNAX’s office-based practices, which specialize in
maternal-fetal medicine, pediatric cardiology, and numerous
pediatric subspecialties, have seen a significant elevation of
appointment cancellations compared to historical normal levels.
At this time, the Company has not experienced, nor does the
Company currently anticipate, any significant impact to neonatal
intensive care unit (NICU) patient volumes as a result of the
COVID-19 situation.
Across its medical groups, the Company believes that these
patient volume declines primarily reflect a deferral of healthcare
services utilization to a later period, rather than a permanent
reduction in demand for its services. Given the general necessity
and critical nature of the services the Company’s affiliated
clinicians provide, MEDNAX anticipates that a majority of these
deferrals will create a backlog of demand in the future, in
addition to the resumption of historically normal activity.
Clinical Response
MEDNAX-affiliated clinicians are primarily hospital-based and
have mobilized in numerous ways to address the ongoing pandemic.
MEDNAX’s American Anesthesiology organization has mobilized
multiple task forces to aid the transition of care from surgical
and non-surgical case volumes to critical and intensive care, and
the Company’s Pediatrix-affiliated clinicians are providing adult
care where needed. Additionally, MEDNAX Radiology Solutions
physicians and leadership are augmenting remote capabilities for
affiliated radiologists, as well as consulting with third parties
regarding the enhanced use of chest imaging for COVID-19 diagnostic
purposes.
“As a clinician-centric and clinician-led organization, it is in
our DNA to run to the fire in times of crisis. Our clinicians are
on the front lines of this pandemic, working tirelessly to help
provide critical, life-saving care,” said Roger J. Medel, M.D.,
Chief Executive Officer of MEDNAX. “We are closely following the
guidance of the Centers for Disease Control and Prevention and
health authorities and have mobilized our dedicated network of
affiliated clinicians in the global effort to fight this pandemic.
I want to thank all of our clinicians for their immeasurable
dedication and effort in caring for patients in these exceptional
times. In particular, I would like to recognize the contributions
of our anesthesiology clinicians, who, as highly-trained acute care
physicians, have quickly been transitioning to providing critical
services to many Coronavirus patients in intensive care in
partnership with hospital staff and administrations.”
Amendments to Credit Facility
MEDNAX retains a strong balance sheet, with moderate leverage,
meaningful liquidity and no debt maturities until late 2023. In
addition, effective March 25, 2020, the Company amended its
revolving credit facility to provide additional interim financial
flexibility during this challenging period. Details of this
amendment can be found in the Company’s Form 8-K filed today with
the Securities and Exchange Commission.
ABOUT MEDNAX
MEDNAX, Inc. is a national health solutions partner comprised of
the nation's leading providers of physician services. Physicians
and advanced practitioners practicing as part of MEDNAX are
reshaping the delivery of care within their specialties and
subspecialties, using evidence-based tools, continuous quality
initiatives, consulting services, clinical research and
telemedicine to enhance patient outcomes and provide high-quality,
cost-effective care. The Company was founded in 1979, and today,
through its affiliated professional corporations, MEDNAX provides
services through a network of more than 4,325 physicians in all 50
states and Puerto Rico. Additional information is available at
www.mednax.com.
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, 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 our 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
MEDNAX’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 MEDNAX 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 MEDNAX’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 as
MEDNAX’s current reports on Form 8-K, filed with the Securities and
Exchange Commission, and include the impact of the COVID-19
outbreak on the Company and its financial condition and results of
operations; the effects of economic conditions on MEDNAX’s
business; the effects of the Affordable Care Act and potential
changes thereto or a repeal thereof; MEDNAX’s relationships with
government-sponsored or funded healthcare programs, including
Medicare and Medicaid, and with managed care organizations and
commercial health insurance payors; the timing and contribution of
future acquisitions; the effects of share repurchases; and the
effects of MEDNAX’s transformation and restructuring
initiatives.
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version on businesswire.com: https://www.businesswire.com/news/home/20200325005295/en/
Charles Lynch Vice President, Strategy and Investor Relations
954-384-0175, x 5692 charles_lynch@mednax.com
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