Mednax Radiology logs $126M in Q3 revenue ahead of closing mega deal with Rad Partners
Mednax’s imaging business line raked in $125.8 million of net revenue in the third quarter of 2020, ahead of its planned sale to industry giant Radiology Partners.
All told, the Sunrise, Florida-based firm pulled in $21.1 million in radiology earnings—before interest, taxes, depreciation and amortization—during the three months that ended Sept. 30. Company officials had no updates on the $885 million sale Friday, other than to say they’re currently working on scoring regulatory approval.
CEO Mark Ordan affirmed his support for the transaction, noting that it will allow Mednax to pay down debt and focus on pediatrics and obstetrics. The company also sold its troubled anesthesiology division earlier this year and plans to change its name back to Pediatrix.
“We were and are very pleased with the agreed upon price and when the sale closes, we will be able to make our strong balance sheet much stronger, allowing us to operate our core practice areas more efficiently and to grow more certainly,” Ordan told investors Nov. 6.
Overall, Mednax reported a net loss of $41 million for the third quarter, driven primarily by $38.4 million in discontinued operations after labeling Radiology Solutions as an “asset held for sale.”
Like the rest of the industry, Mednax has faced headwinds in imaging amid the coronavirus pandemic. Radiology volume dropped roughly 29% in the second quarter, officials said over the summer, but patient visits had rebounded to 90% of pre-COVID levels by the end of June.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.