Health Care partner W. Kenneth Davis, Jr. was quoted in Radiology Business about the sale of Mednax’s radiology division, “Radiology Solutions,” expressing his surprise at the sale and belief that it may be a warning to other similar firms.
“One of the questions that I and others have asked about these businesses during the pandemic has been their ability to weather these kinds of problems, given the heavy debt loads they typically have,” Ken said. “Certainly, if you ask the industry players, they’ll tell you there’s no problem. But on the other hand, it’s common sense when you see the kinds of downturns in revenue that all radiology practices and imaging centers have seen.”
According to Mednax, discussions to sell its radiology practice had begun prior to the COVID-19 crisis, but the effects of the crisis caused the business to postpone executing a deal until the economy improved. Before the pandemic, Mednax Radiology Solutions was expected to receive $550 million in revenue. Once the pandemic began, its volume fell by 50 percent in April and 25 percent in May.
In April, Mednax paid off all its remaining debt on its revolving credit line, now owing $1.66 billion in net unpaid debt. Mednax intends to focus on its pediatrics practice and will change its name back to Pediatrix Medical Group.
Read, “Mednax to sell its $550M Radiology Solutions business line, change name back to Pediatrix,” in its entirety.