Executive Chair Mark S. Ordan to Return as
Chief Executive Officer
Company Redoubles Strategic Focus on Physician
Practices and Hospital and Health System Relationships
Pediatrix Medical Group, Inc. (NYSE: MD) (“Pediatrix” or “the
Company”), a leading provider of physician services, today
announced a leadership transition to accelerate its progress in
executing a transformational strategy designed to create value for
shareholders and other stakeholders. To best position Pediatrix to
implement the strategy, which is based on recommitting to the
highest standards in clinical excellence and strengthening the
Company’s hospital relationships, the Company’s Board of Directors
has appointed Executive Chair Mark S. Ordan to return to his former
position as Chief Executive Officer, effective immediately. James
D. Swift, M.D., a veteran Pediatrix executive who assumed the CEO
role in January 2023, will assist Mr. Ordan during the transition
period.
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 $205 million to $215 million. The Company
currently believes it will achieve the high end of the range and
that 2024 adjusted EBITDA may exceed such range. The Company will
announce its fourth quarter and full year 2024 results on February
20, 2025.
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 U.S. Chamber of Commerce. Mr. Ordan
received his BA from Vassar College and his MBA from Harvard
Business School.
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 December 31,
2024
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
Pediatrix Medical (NYSE:MD)
Historical Stock Chart
From Dec 2024 to Jan 2025
Pediatrix Medical (NYSE:MD)
Historical Stock Chart
From Jan 2024 to Jan 2025
