Industry giant Mednax recorded a 29% drop in its radiology service volumes during the second quarter that ended June 30, but numbers appear to be rebounding.
The decline in business was worse in April at 50%, but levels reached upward of 90% of pre-COVID volume by the end of June, the Florida physician firm reported Thursday. Mednax just hired a new CEO earlier this month, who this week affirmed plans to unload the company’s imaging business line to focus on its core businesses in pediatrics and obstetrics.
“We believe this focus will enable us to benefit from proven clinical leadership and innovation, an extensive national footprint and significant growth opportunities,” said chief executive Mark Ordan, who assumed the role July 12. “The company’s growth initiatives have continued throughout this challenging period, which demonstrates that we are a partner of choice for health systems across the country.”
Mednax said same-unit revenue from net reimbursement-related factors increased by 0.2% in the second quarter, and the firm collected $11.7 million in aid as part of the CARES Act. However, those positives were partially offset as net pricing for services delivered by some of its radiology groups were tugged downward by reductions in administrative fees tied to imaging volumes.
All told, Mednax reported a net loss of more than $672 million, or $8 per share, during the second quarter on revenue of $509 million, with same-unit sales sliding 11.7%. Adjusting earnings to before interest, taxes, depreciation and amortization, Mednax netted $65 million during Q2.
You can read more about their earnings picture here.