MEDNAX, Inc. (MD - Free Report) has entered into a collaboration with Orlando, FL-based private pediatric otolaryngology practice CENTA, P.L. With this unique partnership, MEDNAX will be able to add to the services that it provides in the region via its solid network of affiliated physicians across various specialties like maternal-fetal medicine, anesthesiology, neonatology, pediatric urology and radiology, etc. The deal was a cash transaction and will be immediately accretive to earnings. However, other terms of the agreement were not disclosed.
It should be noted that the company provides advanced Women's and Children's care in Central Florida and its network caters to more than 12 regional hospital partners.
Established in 2006, CENTA has been dispensing pediatric otolaryngology, allergy and audiology services in Central Florida for more than 12 years. With three local offices as well as Maitland Surgery Center, AdventHealth Orlando and Arnold Palmer Hospital for Children, it is the best partner for this strategic move by MEDNAX.
MEDNAX also reached an agreement with Northern Indiana Neonatal Associates, P.C., a private neonatology practice located in Fort Wayne, IN, this month. Alignment with this practice is expected to enhance the portfolio of services that MEDNAX offers in the region with its chain of affiliated physicians across different specialties.
The company has been actively looking to expand its neonatal practices. In 2018 and the first half of 2019, it acquired two neonatology and one neonatology physician group practices. In March this year, MEDNAX announced its affiliation to Georgia Neonatology, LLC, a private neonatology practice in Athens, GA. We believe, all these initiatives bode well for this business line.
Shares of this Zacks Rank #3 (Hold) company have plunged 50.7% in a year’s time, wider than its industry’s decline of 3.4%.
Stocks to Consider
Investors interested in the medical sector can take a look at some better-ranked stocks like Molina Healthcare, Inc (MOH - Free Report) , Universal Health Services, Inc. (UHS - Free Report) and The Ensign Group, Inc. (ENSG - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Molina offers Medicaid-related solutions to meet the health care needs of low-income families and individuals. In the trailing four quarters, the company came up with average beat of 66.9%. It sports a Zacks Rank #1.
Universal Health owns and operates acute care hospitals, outpatient facilities and behavioral health care facilities. In the last four quarters, the company delivered average beat of 4.5%. The stock carries a Zacks Rank #2 (Buy).
Ensign Group provides health care services. In the previous four quarters, the company delivered average beat of 2.49%. It has a Zacks Rank of 2.
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