Mednax medical group just completed the sale of its imaging business line in December and had originally planned to change names after closing the deal. But leaders have now opted against the rebrand, company officials said Thursday.
The Sunrise, Florida, physician firm hoped to switch its name to Pediatrix as a nod to its start as a single neonatology group in 1979. CEO Mark Ordan, however, said the move just did not make financial sense (or cents).
“Well, one of the reasons you ticked off is on-the-money, and that's the money,” Ordan said in response to a question about the name change during the company’s fourth quarter earnings call Thursday, adding that it likely would have cost “several hundred thousand dollars.” “We're cheap, and we try to manage our expenses. And while it sounds cool to change your name, we didn't see the reason,” he added later.
Ordan further noted that Mednax has been looking to eliminate every expense that does not impact patient care. Investing in fresh logos and other related expenses “seemed like a waste of money” amid a global pandemic.
Mednax first revealed the naming decision in a December filing with the Securities and Exchange Commission after its board of directors opted against it.
Meanwhile, the company finalized its sale of Mednax Radiology Solutions during 2020’s fourth quarter, altogether collecting $865 million in net proceeds (compared to an originally quoted price of $885 million). The new owner is El Segundo, California-based Radiology Partners, which just embarked on the months-long process of integrating its new practices.
Mednax also unloaded its troubled anesthesiology division in May for $50 million, leaving the once-diversified firm now operating only in pediatrics and obstetrics.
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.