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Pediatrix Announces Strategic Initiatives For
Enhanced Shareholder Value Creation
Executive Chair Mark S. Ordan to Return as Chief Executive Officer
Company Redoubles Strategic Focus on Physician Practices
and Hospital and Health System Relationships
FORT LAUDERDALE, Fla., January 13, 2025 Pediatrix Medical Group, Inc. (NYSE: MD) ( Pediatrix or the Company ), a leading
provider of physician services, today announced a leadership transition to accelerate its progress in executing a transformational strategy designed to create value for shareholders and other stakeholders. To best position Pediatrix to implement the
strategy, which is based on recommitting to the highest standards in clinical excellence and strengthening the Company s hospital relationships, the Company s Board of Directors has appointed Executive Chair Mark S. Ordan to return to his
former position as Chief Executive Officer, effective immediately. James D. Swift, M.D., a veteran Pediatrix executive who assumed the CEO role in January 2023, will assist Mr. Ordan during the transition period.
In the past year, led by Mr. Ordan and the Board of Directors, the Company has instituted a number of key initiatives designed to enable it to better
execute on its core mission and drive operating efficiency and profitability, including moving to a hybrid revenue cycle management model, optimizing its portfolio of practices, divesting its primary and urgent care clinics, and restructuring its
Guy Sansone, Lead Independent Director, commented: We see great opportunity ahead for Pediatrix, and
based on the steps the Company has taken, it is now time to accelerate the work to realize that potential. Mark has spent his career transforming business operations, including at Pediatrix where he led the Company s restructuring beginning in
2020, during a period of enormous turbulence and change across the healthcare landscape. More recently, Mark again stepped in to help execute on our strategy and drive our return to hospital- and hospital-patient focused activities. Now, we need to
refocus Pediatrix around a successful approach to creating superior value for shareholders and other stakeholders, and ensure that our entire team is pulling in that direction. We couldn t be more pleased that Mark has agreed to step into the
Chief Executive Officer role once again.
Mr. Ordan commented: I am honored to return as CEO, and excited to work with our
extraordinary team to make sure that our patients are at the center of everything that we do. This requires steady focus on our renowned practices and a very close and collaborative working relationship with our hospital and health system partners.
We will devote all of our time and resources to strengthening our relationships with them and concentrating on patient-centric activities.
Mr. Sansone added, We are grateful to Jim for the work that he has done over his many years at Pediatrix, and we wish him the best.
The Company previously announced 2024 outlook of expected adjusted EBITDA (net income (loss) before interest, taxes, depreciation and amortization,
transformational and restructuring related expenses, impairment losses, and loss on disposal of businesses) in a range of $205 million to $215 million. The Company currently believes it will achieve the high end of the range and
that 2024 adjusted EBITDA may exceed such range. The Company will announce its fourth quarter and full year 2024 results on February 20, 2025.
A highly accomplished business
leader with significant and successful turnaround experience, Mr. Ordan has led the turnaround of several complex, public companies which in addition to Pediatrix include healthcare companies such as Sunrise Senior Living, Quality
Care Properties, and ManorCare. Mr. Ordan served as CEO of Pediatrix from July 2020 to December 2022, during which he led the Company s restructuring. He was Executive Chair of the Board of Directors of Pediatrix from January 2023 to June
2023 and Chair of the Board from July 2023 to October 2024. He has served as Executive Chair of the Board since October 2024, leading the strategic redirection of the Company over the past year to focus on its core hospital-based strength and its
leadership in maternal fetal medicine.
Prior to joining Pediatrix, Mr. Ordan founded and served as CEO of Quality Care Properties after serving as
founding CEO of Washington Prime Group. Mr. Ordan also held a number of CEO roles including at Sunrise Senior Living, The Mills Corporation, and Balducci s, and was founder and CEO of Fresh Fields Markets, which he later merged with Whole
Mr. Ordan serves on the Board of Directors of The Carlyle Group and is the Board Chair of the U.S.
Chamber of Commerce. Mr. Ordan received his BA from Vassar College and his MBA from Harvard Business School.
ABOUT PEDIATRIX MEDICAL GROUP
Pediatrix Medical Group, Inc. (NYSE:MD) is a leading provider of physician
services. Pediatrix-affiliated clinicians are committed to providing coordinated, compassionate and clinically excellent services to women, babies and children across the continuum of care, both in hospital settings and office-based practices.
Specialties include obstetrics, maternal-fetal medicine and neonatology. The group s high-quality, evidence-based care is bolstered by significant investments in research, education, quality-improvement and safety initiatives. The physician-led company was founded in 1979 as a single neonatology practice and today provides its highly specialized and often critical care services through approximately 4,500 affiliated physicians and other
Certain statements and information in this press release may be deemed to contain forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the Securities Act ), and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may include, but are not
limited to, statements relating to the Company s expectations with respect to its full year 2024 earnings, the Company s objectives, plans and strategies, and all statements, other than statements of historical facts, that address
activities, events or developments that we intend, expect, project, believe or anticipate will or may occur in the future. These statements are often characterized by terminology such as believe, hope, may,
anticipate, should, intend, plan, will, expect, estimate, project, positioned, strategy and similar expressions, and are based on
assumptions and assessments made by the Company s management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Any
forward-looking statements in this press release are made as of the date hereof, and the Company undertakes no duty to update or revise any such statements, whether as a result of new information, future events or otherwise. Forward-looking
statements are not guarantees of future performance and are subject to risks and uncertainties. Important factors that could cause actual results, developments, and business decisions to differ materially from forward-looking statements are
described in the Company s most recent Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q, including the sections entitled Risk Factors ,
as well the Company s current reports on Form 8-K, filed with the Securities and Exchange Commission, and include the impact of the Company s practice portfolio management plans and whether the
Company is able to achieve the expected favorable impact to Adjusted EBITDA therefrom; the impact of the Company s termination of its then third-party revenue cycle management provider
and transition to a hybrid revenue cycle management model with one or more new third-party service providers, including any transition costs associated therewith; the impact of surprise billing
legislation; the effects of economic conditions on the Company s business; the effects of the Affordable Care Act and potential healthcare reform; the Company s relationships with government-sponsored or funded healthcare programs,
including Medicare and Medicaid, and with managed care organizations and commercial health insurance payors; the Company s ability to comply with the terms of its debt financing arrangements; the impact of the divestiture of the Company s
anesthesiology and radiology medical groups and its primary and urgent care practices; the impact of management transitions; the timing and contribution of future acquisitions or organic growth initiatives; the effects of share repurchases; and the
effects of the Company s transformation initiatives, including its reorientation on, and growth strategy for, its pediatrics and obstetrics business.
Pediatrix Medical Group, Inc.
Reconciliation of Net Loss to Forward-Looking Adjusted EBITDA
| Year Ended December 31, 2024 | ||||||||
| Net loss | $ | (110,315 | ) | $ | (103,015 | ) | ||
| Interest expense | 40,559 | 40,559 | ||||||
| Income tax provision | 1,990 | 4,690 | ||||||
| Depreciation and amortization expense | 31,800 | 31,800 | ||||||
| Transformational and restructuring related expenses | 48,000 | 48,000 | ||||||
| Goodwill and long-lived asset impairments | 182,034 | 182,034 | ||||||
| Loss on disposal of businesses | 10,932 | 10,932 | ||||||
| Adjusted EBITDA | $ | 205,000 | $ | 215,000 |