Radiology provider Mednax revealed Thursday that imaging volume at its affiliated practices dipped between 50%-60% in April, weighing down the firm’s financial results.
A similar drop was seen in the company’s anesthesia division, with leaders estimating a year-over-year revenue decrease of upward of 35%. As such, the Florida physician firm has withdrawn its financial predictions for 2020 and sought to tap its revolving credit line for financial flexibility during public-health crisis.
“Our operating results for the quarter, and following the quarter, have been significantly impacted by the COVID-19 pandemic,” CEO Roger Medel, MD, said in May 7 statement. “I am immensely proud of our organization’s commitment to take great care of the patient, and the steps we have taken to put that commitment into action in such an unprecedented environment.”
All told, Mednax said it logged nearly $845.9 million in revenue during the first quarter that ended March 31, a dip from $851.2 million during the same period last year. The company tallied a loss of $16 million the first quarter of 2020, though earnings before interest, taxes, depreciation and amortization landed at $63 million. That compares to net income of $41.7 and EBITDA of $104.9 during the same period in 2019.
Mednax has taken several actions to counter COVID’s impact—reducing top executives’ salaries by 50%, cutting base salaries for other key managers, and dropping third-party expenses, too. The Sunrise, Florida, provider—which employs about 800 radiologists—also announced the sale of its troubled anesthesiology division on Wednesday.
You can read more about Mednax’s first quarter results here.
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.