The directors of physician services company Pediatrix Medical Group Inc. have reinstated former CEO Mark Ordan to that role, bumping aside Jim Swift after two years.
In a statement announcing the move, Fort Lauderdale-based Pediatrix said Ordan—who was CEO from July 2020 to December 2022 and then was named chairman—will be in a better position to oversee a strategy “based on recommitting to the highest standards in clinical excellence and strengthening the company’s hospital relationships.” Swift will stay with Pediatrix during a transition period but leave the company after that.
The change at Pediatrix’s helm comes after a 2024 marked by big decisions such as divesting most of the company’s office-based practices and moving on from revenue cycle manager R1. In November, Swift and CFO Kasandra Rossi told analysts that both of those major initiatives appeared to be on track to surpass expectations.
“We see great opportunity ahead for Pediatrix, and based on the steps the company has taken, it is now time to accelerate the work to realize that potential,” Guy Sansone, Pediatrix’s lead independent director, said while lauding Ordan in the announcement. “We need to refocus Pediatrix around a successful approach to creating superior value for shareholders and other stakeholders and ensure that our entire team is pulling in that direction.”
Echoing Sansone, Ordan said he will bring a “steady focus” to the management of Pediatrix’s clinics and the company’s work with hospitals and health systems.
“We will devote all of our time and resources to strengthening our relationships with them and concentrating on patient-centric activities,” Ordan said.
That “all of our time” operations-focused language suggests Pediatrix’s board wasn’t on board with the M&A ambitions voiced in November by Swift, who was the company’s chief development officer before he stepped into the CEO seat in early 2023. Speaking after reporting third-quarter earnings, Swift said he saw “a real opportunity” to go after new deals for hospital-based and maternal fetal doctor groups.
Investors approve of Ordan’s reinstatement as well as the accompanying word that 2024 results may come in better than expected: Shares of Pediatrix (Ticker: MD) climbed 7 percent to $13.31 on Jan. 13, comfortably outpacing a generally flat broader market. The stock has now climbed about 80 percent over the past six months, growing Pediatrix’s market capitalization to more than $1.1 billion.
