MEDNAX, Inc.’s (MD - Free Report) affiliate, Jefferson Radiology, recently announced its tie up with Center for Diagnostic Imaging (“CDI”). Notably, MEDNAX had declared affiliation with Jefferson Radiology in 2017.
The collaboration with CDI is aimed at providing enhanced patient care services in the Springfield city, MA. Best known for their strong network of outpatient imaging centers and sub-specialized radiologists, the collaboration is likely to provide a competitive edge to both the companies.
As part of this tie up, CDI will have access to more than 60 sub-specialized radiologists of Jefferson Radiology, who are well-equipped to provide a diverse range of sub-specialized radiology services. Apart from going through advanced imaging cases of CDI, a physician from Jefferson Radiology will also be staffed at CDI’s Springfield location for processing complex exams and procedures.
With operations in Connecticut and Massachusetts already, this latest move of Jefferson Radiology will only reinforce its presence in the region. Being an affiliate of MEDNAX, such initiatives also bode well for the company.
Moreover, this announcement comes at a time when the United States is grappling with the COVID-19 outbreak. As a result, the new tie up is likely to provide better health outcomes for the Springfield community amid the pandemic.
Furthermore, MEDNAX has been focused on strengthening its global foothold on the back of affiliation with private radiology practices. In January of this year, it announced affiliation with Southeast Florida’s Boca Radiology Group, P.A. This initiative clearly underlines efforts of MEDNAX to establish presence in Florida. Such efforts, in turn, are likely to boost the company’s top-line results in the days ahead.
However, MEDNAX’s first-quarter 2020 results were negatively impacted by the coronavirus outbreak, which dented patient volumes and revenues. Nevertheless, the healthcare provider has recently completed the sale of its American Anesthesiology to North American Partners in Anesthesia (NAPA), primarily to avoid losses. The decision to get rid of loss making units and avert the impact of pandemic bode well for MEDNAX.
Also, shares of this Zacks Rank #4 (Sell) company have lost 52.5% in a year compared with the industry’s decline of 19.4%.
Stocks to Consider
Some better-ranked stocks in the medical space are Alexion Pharmaceuticals, Inc. (ALXN - Free Report) , The Ensign Group, Inc. (ENSG - Free Report) and Humana Inc. (HUM - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Alexion Pharmaceuticals, Ensign Group and Humana surpassed estimates in the last reported quarters by 19.26%, 24.19% and 11.57%, on average, respectively.
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