Mednax, Inc. ( MD Quick Quote MD - Free Report) recently announced that the company’s affiliated practices are adopting the Pediatrix Medical Group brand. The move is in line with its strategy to improve brand awareness and is expected to highlight its exclusive focus on providing specialized services for women, babies and children.
Unifying its certain operations under the Pediatrix brand is expected to collectively promote its wide range of healthcare services, which was earlier difficult due to different brand names. The company is boosting its services across maternal-fetal medicine, neonatology and obstetric, and 18 pediatric subspecialty offerings. While the brand change incorporates a new Pediatrix logo for better awareness, the publicly traded company will keep its Mednax, Inc. name intact.
Mednax is the successor of Pediatrix Medical Group, which was founded in Florida in 1979. The company has invested more than $25 million over the past five years in education, research, safety initiatives and others in order to improve its service quality. Clinicians working with Pediatrix currently provide services to one in every four babies in the United States. It has more than 4,700 affiliated physicians and clinicians practicing in Puerto Rico and 38 U.S. states.
Rising patient volumes are boosting its profit levels for the past few quarters, and this current brand evolution will likely further drive volumes in the coming days. Apart from that, the company is also focused on expanding its telehealth services in a bid to ensure access to healthcare even when staying at home. Given the current situation and easy access, we expect this business line to continue performing well going forward besides boosting profits. The company expects its adjusted EBITDA for 2022 to be at least $270 million, indicating an increase from the 2021 level of $265.5 million.
Although Mednax shares have decreased 9.2% in the past three months against the 8.8% increase of the
industry, its strategic initiatives to boost operational efficiency and patient volumes will likely turn things around. Image Source: Zacks Investment Research Zacks Rank & Other Key Picks
Mednax currently sports a Zacks Rank #1 (Strong Buy). Some other stocks from the
Medical space that investors can consider include Acadia Healthcare Company, Inc. ( ACHC Quick Quote ACHC - Free Report) , Change Healthcare Inc. ( CHNG Quick Quote CHNG - Free Report) and Doximity, Inc. ( DOCS Quick Quote DOCS - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see . the complete list of today’s Zacks #1 Rank stocks here
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