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MEDNAX Announces Acquisition of Large Anesthesiology Practice in New Jersey


MEDNAX, Inc. (NYSE: MD), today announced the acquisition of New Jersey Anesthesia Associates (NJAA), a private physician group practice based in Livingston, N.J.

NJAA employs 90 full-time clinicians (70 anesthesiologists, 13 anesthetists, two nurse practitioners and five physician assistants) that provide a full spectrum of anesthesia services at Saint Barnabas Medical Center (SBMC), a 577-bed non-profit teaching hospital, and Newark Beth Israel Medical Center. SBMC is the oldest and largest non-profit, nonsectarian hospital in New Jersey, serving more than 32,500 inpatients annually and together with Barnabas Health Ambulatory Center, more than 300,000 outpatients annually.

Both hospitals are part of Barnabas Health, New Jersey's largest integrated health care delivery system. In addition, the practice provides anesthesia services at four ambulatory surgery centers and five outpatient facilities, and chronic pain services at five pain centers.

NJAA provides services in collaboration with highly advanced acute-care programs at Barnabas Health. The practice's anesthesia services include general anesthesia, cardiac, obstetric, transplant, critical care, chronic pain and acute pain management for post-operative pain. More than 20 of NJAA's physicians hold advanced training in anesthesia sub-specialties, particularly cardiac and pediatric anesthesia, or multiple board certifications. NJAA also supports the health system's advanced care programs through cardiac anesthesia fellowships, residency programs, management of post-operative care of cardiac surgery patients, and participation in a perioperative surgical home collaborative.

"MEDNAX's leadership team and structure was the strongest of all of the groups we met," said H. Rae Pak, D.O, who will serve as medical director for the practice. "It was essential for us to partner with a national medical group with leadership that understands the complexity and diversity of our group, and shares our same vision for the future. Additionally, MEDNAX's research, education and quality initiatives will support our practice's goals and ultimately help us to better respond to the needs of our hospital partners."

As part of this transaction, MEDNAX will also acquire Health Network Management, LLC, a comprehensive billing management company which is affiliated with NJAA through common shareholder ownership.

This was a cash transaction, and it is expected to be immediately accretive to earnings. No additional terms of the transaction were disclosed.


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