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Mednax (MD) Invests in Brave Care to Boost Pediatric Business

Mednax, Inc. MD recently entered into a collaboration with Brave Care so that both can develop new and unique primary and urgent care clinics in the United States. Brave Care is a modern pediatric primary and urgent care medical platform.

Per the terms of the deal, Mednax invested $20 million in purchasing a minority ownership stake in Brave Care.

Both companies share a common commitment to provide top-notch pediatric care on the back of advanced technology.

Brave Care is known to provide advanced and timely care and consistent communication owing to its proprietary, modern technology and powerful data. Brave Care clinics are open 12 hours a day throughout the week and one can also get in touch with the same 24/7 through its nurse line and mobile app.

The combination of Mednax’s clinical expertise with Brave Care’s experience and access to operating and communications systems is expected to lead to better health outcomes for children. The latest deal seems a win-win situation for both Mednax and Brave Care.

Post closure of the partnership, Mednax will draft a plan to start a multi-year project to open more than 100 clinics across its current locations. This builds upon its already set goal of streamlining its operations. The company’s existing NightLight clinics will also be rebranded as Pediatrix.

This is a pathbreaking move for Mednax as it is foraying into the urgent care business. The company is continuously taking various measures to restructure its business. It sold both its anesthesia and radiology divisions last year to focus on its core pediatrics and obstetrics business lines.
In 2019, it completed its nine physician group practice acquisitions including two neonatology physician practices, two maternal-fetal physician practices, one radiology practice and four other pediatric subspecialty practices.

In 2020, it bought one paediatric subspecialty practice for $2.1 million. The company also has a solid pipeline of activities coming up.

Its host of activities including buyouts and divestments along with a healthy revenue stream poise it well for growth. Moreover, it is expanding its telehealth services to ensure access to healthcare even while staying at home. Given the current situation, we expect this business line to continue performing well going forward.

Shares of this currently Zacks Rank #3 (Hold) company have gained 65.7% in a year, underperforming its industry’s growth 66.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Other companies in the same space, such as Acadia Healthcare Company, Inc. ACHC, Tenet Healthcare Corporation THC and HCA Healthcare, Inc. HCA have gained 85.5%, 123.2% and 80.9%, respectively.

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