Pediatrix Medical Group, a Sunrise, Fla.-based provider of neonatal and pediatric services
in 32 states and Puerto Rico, purchased a Seattle-area physician practice in a cash deal
of an undisclosed amount, according to a news release.
The seven radiologists, specializing in ultrasounds for high-risk obstetric patients, join
the 950 physicians already under the Pediatrix umbrella, including a pediatric-cardiology
practice in Tacoma. It was the fourth such purchase Pediatrix has made this year, said Bob
Kneeley, the companys director of investor relations. The others were located in Munster,
Ind., San Antonio and San Francisco.
Weve bought probably 120 practices over the past 10 years, he said. Part of our appeal
to physicians is giving them a place where they can concentrate on the practice of
medicine while we handle the administrative stuff.
Last week, Pediatrix Chief Financial Officer Karl Wagner and General Counsel Thomas
Hawkins both reported exercising stock options for $30.99 per share and then selling them for
$56.59 a share on the same day. Wagner reportedly sold 37,500 shares, while Hawkins sold 32,674 shares.
Kneeley said these deals had nothing to do with the Seattle purchase, and were part of a
prearranged plan that would automatically go into effect when the stock hit the right
The U.S. attorneys office in Miami is investigating the companys past stock-option
granting practices, and a preliminary review conducted by the Pediatrix boards audit
committee in December 2006 did uncover deficiencies in oversight. Kneeley said the
committee has completed its review, and the case is now proceeding through the channels of
the Securities and Exchange Commission and the Justice Department. Kneeley added that the
company was cooperating with the investigation, but he didnt have any estimates on when
the matter would be resolved. -- by Andis
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