Wake medical group sold: A Florida company takes over the only anesthesia provider for Wake hospital patients

Oct 02, 2008 (The News & Observer - McClatchy-Tribune Information Services via COMTEX) -- PDX | Quote | Chart | News | PowerRating -- The medical practice that is the only provider of anesthesia for hospital patients in Wake County has been bought by a Florida corporation.

A division of Pediatrix Medical Group, based in Sunrise, Fla., announced Wednesday that it paid an undisclosed amount of cash for Critical Health Systems of Raleigh.

Critical Health traces its roots to the late 1960s. The group's 61 anesthesiologists and 191 certified registered nurse anesthetists assist with surgeries at WakeMed, Rex Healthcare, Duke Raleigh Hospital and other medical facilities, touching the lives and health of thousands of patients.

Dr. Eric Mason, Critical Health's president, will serve as Raleigh medical director for American Anesthesiology, the Pediatrix subsidiary. The division was formed in 2007 and also has bought anesthesiology groups in Fairfax, Va., and Atlanta.

Mason said Critical Health officials began talking to Pediatrix about a year ago.

"This is really the next step in our transition," Mason said. The company's primary focus is on Wake County, but "we're definitely interested in more growth," he added.

The practice also serves Wilson Medical Center.

Critical Health in its current form started with the 1995 merger of Wake Anesthesiology Associates and Raleigh Anesthesia Associates. The company also helped found the Raleigh School of Nurse Anesthesia in 1990 with UNC-Greensboro.

The local impact

The company has long-term contracts with local medical facilities. Officials at WakeMed and Rex said they don't expect to see any changes after the sale. The deal will allow Critical Health's providers to collaborate with other Pediatrix physicians on issues such as patient safety and quality of care.

Critical Health also employs more than 90 administrative and support staff in Raleigh who handle billing and other tasks.

Pediatrix doesn't plan to eliminate any jobs, and the administrative work force could expand as Pediatrix continues buying anesthesiology practices, spokesman Bob Kneeley said.

Pediatrix was attracted by Critical Health's "relationships with hospitals that are expanding in a fast-growing community," Pediatrix CEO Roger Medel said Wednesday on a conference call with Wall Street analysts.

He said the acquisition will boost Pediatrix earnings per share by 10 cents a year. The company reported earnings of $2.84 per share last year on revenue of $921.5 million.

Pediatrix announced last month that it plans to change its name early next year to Mednax Inc., to reflect its expansion beyond pediatric medical care. Pediatrix's main business is providing neonatal services for premature babies at 250 hospitals in 32 states.

The company warned Tuesday that its third-quarter earnings would be lower than expected. Pediatrix blamed slower patient volume and a shift to more government insurance coverage, which tends to pay less than commercial plans.

alan.wolf@newsobserver.com or 919-829-4572

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