. Barret, K. A. Dolan, S. Fitch, J. Muller and D. Whelan 10.02.08, 6:00 PM ET
Forbes Magazine dated October 27, 2008
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In good times and bad roughly one in eight babies ends up in the neonatal intensive care unit of the hospital. Prematurity, respiratory distress, infections or other conditions put them there, on average, for 18 days. Pediatrix Medical Group (nyse: PDX - news - people ) of Sunrise, Fla. employs 1,200 physicians to help smallish hospitals set up and staff these units (250 and counting). In the 12 months ended June 30, net earnings rose 34% to $174 million on revenue of $991 million, up 14.5%.
Originating as the medical practice of two South Florida neonatologists in 1979, Pediatrix survived the HMO-driven churn and shakeouts, and began expanding outside of Florida to West Virginia in 1990 and now operates in 32 states. Pediatrix has benefited from trends like older parenting; women who have kids later tend to have more complicated pregnancies, premature babies and twins. But because such care is expensive and health plans are pushing moms to get prenatal care to stay out of intensive care, Pediatrix is starting to diversify into cardiology, anesthesia and obstetrics practices. Still, says company cofounder and Chief Roger Medel, "The rate of prematurity continues to increase."
