The Federal Trade Commission is investigating the 2001 purchase of Magella Healthcare Corp., Dallas, by Pediatrix Medical Group, Fort Lauderdale, Fla., for $190 million. Yesterday Pediatrix, which manages about 625 neonatal physicians nationwide, said it received an FTC subpoena regarding the deal, which Pediatrix said gave it about 17% of the neonatology physician market. The company had received an informational request from the FTC in June 2002. Officials said the company "intends to continue to cooperate fully with the FTC, but at this time cannot predict whether the investigation will have a material adverse effect on its business, financial condition or results of operations." Pediatrix earned $19 million, or 73 cents per share, in the fourth quarter ended Dec. 31, compared with $10.1 million, or 39 cents per share, in the year-ago period. Magella employed 100 physicians at the time of its acquisition. -- by Julie Piotrowski
FTC eyes 2001 acquisition by neonatology firm
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