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Here's How Mednax (MD) Can Gain By Adopting the Pediatrix Brand

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Mednax, Inc. (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.

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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 - Free Report) , Change Healthcare Inc. (CHNG - Free Report) and Doximity, Inc. (DOCS - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Acadia Healthcare aims to add 300 beds to its existing facilities.

Acadia Healthcare expects adjusted EBITDA for 2022 within $575-$610 million, signaling an increase from $558.7 million in 2021. ACHC anticipates earnings per share within 62-66 cents for the March quarter.

Change Healthcare’s bottom line for the current year is expected to jump 16.4% year over year.

Change Healthcare utilizes artificial intelligence and machine learning to detect inefficiencies and eliminate the same from administrative processes in the healthcare system. CHNG helps its clients decrease costs and help payers, providers, and patients with better outcomes.

Doximity’s acquisition of Amion will boost its scheduling and messaging services for clients.

DOCS, the medical doctor digital platform, witnessed five upward earnings estimate revisions in the past 30 days compared to none in the opposite direction. The Zacks Consensus Estimate for Doximity’s bottom line for the current year stands at 81 cents per share.