Physician-outsourcing firm Mednax signed a definitive deal Monday to acquire MedData, a company that provides revenue-cycle
services to physician groups and hospitals.
The deal is a shift for Mednax, based in Fort Lauderdale, Fla., as its recent transactions have involved other physician groups. In April, the company purchased Fredericksburg (Va.) Anesthesia Associates
for an undisclosed amount of money. In the six months ended June 30, Mednax has acquired five anesthesiology practices and one neonatology practice, two of its core service areas.
MedData, founded in 1980 and headquartered in Brecksville, Ohio, provides coding, billing and patient financial services to more than 3,000 physicians in 700 facilities. Private-equity firm Baird Capital bought MedData in 2007.
“This transaction marks an important step in our strategic growth,” Mednax CEO Dr. Roger Medel said in a release
. “We believe it will provide us with a very attractive platform through which to provide management services to facilities and physician groups beyond our existing footprint, a capability we anticipate to grow in demand as reimbursement structures continue to evolve.”
Terms of the all-cash transaction were not disclosed. The company expects to complete the deal in the third quarter of this year.
In the first six months of fiscal 2014
, ended June 30, Mednax recorded $142.7 million in net income on $1.16 billion in revenue, resulting in a 12.3% profit margin.Follow Bob Herman on Twitter: @MHbherman