# EDGAR Filing Document

**Accession Number:** 0000893949
**File Stem:** 0000950170-25-102382
**Filing Date:** 2025-8
**Character Count:** 212075
**Document Hash:** 523fa0e020d7d979952223166321d5e2
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950170-25-102382.hdr.sgml**: 20250805

**ACCESSION NUMBER**: 0000950170-25-102382

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 56

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250805

**DATE AS OF CHANGE**: 20250805

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Pediatrix Medical Group, Inc.
- **CENTRAL INDEX KEY:** 0000893949
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-HOSPITALS [8060]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 263667538
- **STATE OF INCORPORATION:** FL
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-12111
- **FILM NUMBER:** 251182729

**BUSINESS ADDRESS:**
- **STREET 1:** 1301 CONCORD TERRACE
- **CITY:** SUNRISE
- **STATE:** FL
- **ZIP:** 33323
- **BUSINESS PHONE:** 9543840175

**MAIL ADDRESS:**
- **STREET 1:** 1301 CONCORD TERRACE
- **CITY:** SUNRISE
- **STATE:** FL
- **ZIP:** 33323

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MEDNAX, INC.
- **DATE OF NAME CHANGE:** 20090102

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PEDIATRIX MEDICAL GROUP INC
- **DATE OF NAME CHANGE:** 19950801

?xml version='1.0' encoding='ASCII'? 10-Q

------

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

------

**FORM** 10-Q

------

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended** **June 30,** 2025

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from ______ to ______**

**Commission File Number:** 001-12111

------

![img261193434_0.jpg](img261193434_0.jpg)

Pediatrix Medical Group, Inc.

**(Exact name of registrant as specified in its charter)**

------

---

| | |
|:---|:---|
| Florida | 26-3667538 |
| **(State or other jurisdiction of**<br>**Incorporation or organization)** | **(I.R.S. Employer**<br>**Identification No.)** |
| 1301 Concord Terrace<br>Sunrise**,** Florida | 33323 |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

**(**954**)** 384-0175

**(Registrant**[**'**](#mda)**s telephone number, including area code)** 

**Not Applicable**

**(Former name, former address and former fiscal year, if changed since last report)**

------

Securities registered pursuant to Section 12(b) of the Act:

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Title of each class** | &nbsp;&nbsp;**Name of each exchange on which registered** |
| Common Stock, par value $.01 per share<br> &nbsp;&nbsp;&nbsp;MD | New York Stock Exchange |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☑ | Accelerated filer | ☐ |
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
|  |  | Emerging growth company | ☐ |

---

------

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

On August 1, 2025, the registrant had outstanding 87,084,187 shares of Common Stock, par value $.01 per share.

------

**Pediatrix Medical Group, Inc.**

**INDEX**

---

| | | |
|:---|:---|:---|
|  |  | **<u>Page</u>** |
| **PART I - FINANCIAL INFORMATION** | **PART I - FINANCIAL INFORMATION** |  |
| [<u>Item 1.</u>](#financial_statements) | [<u>Financial Statements</u>](#financial_statements) | 3 |
|  | [<u>Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024 (Unaudited)</u>](#balance_sheet) | 3 |
|  | &nbsp;&nbsp;&nbsp;[<u>Consolidated Statements of Income and Comprehensive Income for the Three and Six Months</u>](#statements_income)[<u>Ended</u>](#statements_income)[<u>June 30, 2025 and 2024 (Unaudited)</u>](#statements_income) | 4 |
|  | &nbsp;&nbsp;&nbsp;[<u>Consolidated Statements of Equity for the Three and Six Months Ended</u>](#statements_equity)<br>[<u>June 30, 2025 and 2024 (Unaudited)</u>](#statements_equity) | 5 |
|  | &nbsp;&nbsp;&nbsp;[<u>Consolidated Statements of Cash Flows for the Six Months Ended</u>](#statements_cash_flows)<br>[<u>June 30, 2025 and 2024 (Unaudited)</u>](#statements_cash_flows) | 6 |
|  | [<u>Notes to Consolidated Financial Statements (Unaudited)</u>](#notes_financial_statements) | 7 |
| [<u>Item 2.</u>](#mda) | [<u>Management's Discussion and Analysis of Financial Condition and Results of Operations</u>](#mda) | 13 |
| [<u>Item 3.</u>](#item_3) | [<u>Quantitative and Qualitative Disclosures About Market Risk</u>](#item_3) | 20 |
| [<u>Item 4.</u>](#item_4) | [<u>Controls and Procedures</u>](#item_4) | 20 |
| [**<u>PART II - OTHER INFORMATION</u>**](#part_ii) | [**<u>PART II - OTHER INFORMATION</u>**](#part_ii) |  |
| [<u>Item 1.</u>](#item_1) | [<u>Legal Proceedings</u>](#item_1) | 21 |
| [<u>Item 1A.</u>](#item_1a) | [<u>Risk Factors</u>](#item_1a) | 21 |
| [<u>Item 2.</u>](#item_2) | [<u>Unregistered Sales of Equity Securities and Use of Proceeds</u>](#item_2) | 21 |
| [<u>Item 5.</u>](#item_5) | [<u>Other Information</u>](#item_5) | 21 |
| [<u>Item 6.</u>](#exhibit_index) | [<u>Exhibits</u>](#exhibit_index) | 23 |
| [**<u>SIGNATURES</u>**](#signatures) | [**<u>SIGNATURES</u>**](#signatures) | 24 |

---

------

**Pediatrix Medical Group, Inc.**

**Consolidated Balance Sheets**

**(in thousands, except share data)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
| **ASSETS** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $224732 | $229940 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term investments | 123594 | 118566 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 238992 | 259990 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 10424 | 13410 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes receivable | 7630 | 12614 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 7678 | 5087 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 613050 | 639607 |
| &nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net | 38944 | 39172 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill | 1242606 | 1242606 |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible assets, net | 9296 | 11595 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating and finance lease right-of-use assets | 38690 | 39267 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax assets | 88729 | 103855 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | 70785 | 76598 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $2102100 | $2152700 |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | $303360 | $398690 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of debt and finance lease liabilities, net | 23685 | 20545 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of operating lease liabilities | 12049 | 12704 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | 1949 | 2171 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 341043 | 434110 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt and finance lease liabilities, net | 583863 | 597119 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term operating lease liabilities | 29963 | 31945 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term professional liabilities | 244162 | 257455 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax liabilities | 36019 | 34246 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 33297 | 32887 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 1268347 | 1387762 |
| Commitments and contingencies |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shareholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred stock; $.01 par value; 1,000,000 shares authorized; none issued |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock; $.01 par value; 200,000,000 shares authorized; 86,854,234 and 85,866,000 shares<br> issued and outstanding, respectively | 869 | 859 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 1021290 | 1013690 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) | 137 | (1071) |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained deficit | (188543) | (248540) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity | 833753 | 764938 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and shareholders' equity | $2102100 | $2152700 |

---

*The accompanying notes are an integral part of these Consolidated Financial Statements.*

------

**Pediatrix Medical Group, Inc.**

**Consolidated Statements of Income and Comprehensive Income**

**(in thousands, except per share data)**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Net revenue | $468844 | $504296 | $927203 | $999397 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Practice salaries and benefits | 323502 | 357808 | 660533 | 726946 |
| &nbsp;&nbsp;&nbsp;&nbsp;Practice supplies and other operating expenses | 20614 | 32369 | 39300 | 63454 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses | 55714 | 56565 | 114318 | 116763 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 5313 | 8791 | 10645 | 19099 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transformational and restructuring related expenses | 3834 | 13579 | 10439 | 22059 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill impairment |  | 154243 |  | 154243 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-lived asset impairments |  | 27791 |  | 27791 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of businesses |  | 10873 |  | 10873 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 408977 | 662019 | 835235 | 1141228 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income (loss) from operations | 59867 | (157723) | 91968 | (141831) |
| Investment and other income (loss) | 3727 | (161) | 8464 | 1852 |
| Interest expense | (9130) | (10308) | (18284) | (20907) |
| Equity in earnings of unconsolidated affiliate | 505 | 464 | 911 | 982 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-operating expenses | (4898) | (10005) | (8909) | (18073) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income (loss) before income taxes | 54969 | (167728) | 83059 | (159904) |
| Income tax (provision) benefit | (15709) | 14703 | (23062) | 10914 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) | $39260 | $(153025) | $59997 | $(148990) |
| Other comprehensive income, net of tax |  |  |  |  |
| Unrealized holding gain on investments, net of tax of $140, $66, $395 and $86 | 429 | 200 | 1208 | 260 |
| Total comprehensive income (loss) | $39689 | $(152825) | $61205 | $(148730) |
| Per common and common equivalent share data: |  |  |  |  |
| Net income (loss): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | $0.46 | $(1.84) | $0.71 | $(1.79) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | $0.46 | $(1.84) | $0.70 | $(1.79) |
| Weighted average common shares: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | 84797 | 83332 | 84653 | 83074 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | 85529 | 83332 | 85517 | 83074 |

---

*The accompanying notes are an integral part of these Consolidated Financial Statements.*

------

**Pediatrix Medical Group, Inc.**

**Consolidated Statements of Shareholders**[**'**](#mda) **Equity**

**(in thousands)**

**(Unaudited)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** |  |  |  |  |
|  | **Number of** |  | **Additional<br>Paid-in** | **Accumulated<br>Other<br>Comprehensive** | **Retained** | **Total<br>Shareholders'** |
|  | **Shares** | **Amount** | **Capital** | **(Loss) Income** | **Deficit** | **Equity** |
| **<u>2025</u>** |  |  |  |  |  |  |
| Balance at January 1, 2025 | 85866 | $859 | $1013690 | $(1071) | $(248540) | $764938 |
| Net income |  |  |  |  | 20737 | 20737 |
| Unrealized holding gain on investments, net of tax |  |  |  | 779 |  | 779 |
| Common stock issued under employee stock purchase plan | 60 |  | 662 |  |  | 662 |
| Forfeitures of restricted stock | (7) |  |  |  |  |  |
| Stock-based compensation expense |  |  | 3641 |  |  | 3641 |
| Repurchased common stock | (109) | (1) | (1568) |  |  | (1569) |
| Balance at March 31, 2025 | 85810 | $858 | $1016425 | $(292) | $(227803) | $789188 |
| Net income |  |  |  |  | 39260 | 39260 |
| Unrealized holding gain on investments, net of tax |  |  |  | 429 |  | 429 |
| Common stock issued under employee stock purchase plan | 96 | 1 | 1175 |  |  | 1176 |
| Issuance of restricted stock | 963 | 10 | (10) |  |  |  |
| Stock-based compensation expense |  |  | 3909 |  |  | 3909 |
| Repurchased common stock | (15) |  | (209) |  |  | (209) |
| Balance at June 30, 2025 | 86854 | $869 | $1021290 | $137 | $(188543) | $833753 |
| **<u>2024</u>** |  |  |  |  |  |  |
| Balance at January 1, 2024 | 84018 | $840 | $999906 | $(2214) | $(149471) | $849061 |
| Net income |  |  |  |  | 4035 | 4035 |
| Unrealized holding gain on investments, net of tax |  |  |  | 60 |  | 60 |
| Common stock issued under employee stock purchase plan | 108 | 1 | 859 |  |  | 860 |
| Forfeitures of restricted stock | (21) |  |  |  |  |  |
| Stock-based compensation expense |  |  | 3067 |  |  | 3067 |
| Repurchased common stock | (97) | (1) | (886) |  |  | (887) |
| Balance at March 31, 2024 | 84008 | $840 | $1002946 | $(2154) | $(145436) | $856196 |
| Net loss |  |  |  |  | (153025) | (153025) |
| Unrealized holding gain on investments, net of tax |  |  |  | 200 |  | 200 |
| Common stock issued under employee stock purchase plan | 139 | 2 | 1147 |  |  | 1149 |
| Issuance of restricted stock | 1630 | 16 | (16) |  |  |  |
| Forfeitures of restricted stock | (22) |  |  |  |  |  |
| Stock-based compensation expense |  |  | 1952 |  |  | 1952 |
| Repurchased common stock | (2) |  | (11) |  |  | (11) |
| Balance at June 30, 2024 | 85753 | $858 | $1006018 | $(1954) | $(298461) | $706461 |

---

*The accompanying notes are an integral part of these Consolidated Financial Statements.*

------

**Pediatrix Medical Group, Inc.**

**Consolidated Statements of Cash Flows**

**(in thousands)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) | $59997 | $(148990) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income (loss) to net cash from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 10645 | 19099 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of premiums, discounts and issuance costs | 458 | 440 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment losses |  | 182034 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of businesses |  | 10873 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 7550 | 5019 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 16504 | (25028) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | (1501) | (1678) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 21231 | (934) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 204 | 3703 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other long-term assets | 9601 | 16955 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | (89951) | (82917) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | 4763 | 11735 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term professional liabilities | (8166) | 8039 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | (9315) | (11630) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) operating activities – continuing operations | 22020 | (13280) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities - discontinued operations | (2316) | (4995) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) operating activities | 19704 | (18275) |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition payments, net of cash acquired |  | (8167) |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of investments | (21529) | (39915) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from maturities or sales of investments | 18380 | 31244 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (7833) | (12292) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | (3636) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (14618) | (29130) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings on line of credit |  | 235500 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments on line of credit |  | (235500) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments on term loan | (9375) | (6250) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments on finance lease obligations | (844) | (1391) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of common stock | 1838 | 2009 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchases of common stock | (1778) | (898) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | (135) | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (10294) | (6451) |
| Net decrease in cash and cash equivalents | (5208) | (53856) |
| Cash and cash equivalents at beginning of period | 229940 | 73258 |
| Cash and cash equivalents at end of period | $224732 | $19402 |

---

*The accompanying notes are an integral part of these Consolidated Financial Statements.*

------

**Pediatrix Medical Group, Inc.**

**Notes to Consolidated Financial Statements**

**June 30, 2025**

**(Unaudited)**

**1. Basis of Presentation and New Accounting Pronouncements:**

The accompanying unaudited Consolidated Financial Statements of the Company and the notes thereto presented in this Form 10-Q have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC") applicable to interim financial statements, and do not include all disclosures required by accounting principles generally accepted in the United States of America ("GAAP") for complete financial statements. In the opinion of management, these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results of interim periods. The financial statements include all the accounts of Pediatrix Medical Group, Inc. and its consolidated subsidiaries (collectively, "PMG") together with the accounts of PMG's affiliated business corporations or professional associations, professional corporations, limited liability companies and partnerships (the "affiliated professional contractors"). Certain subsidiaries of PMG have contractual management arrangements with its affiliated professional contractors, which are separate legal entities that provide physician services in certain states. The terms "Pediatrix" and the "Company" refer collectively to Pediatrix Medical Group, Inc., its subsidiaries and the affiliated professional contractors.

During 2024, the Company exited almost all of its affiliated office-based practices, including its primary and urgent care service line. The operating results of these practices did not meet the criteria to be reported as discontinued operations in the Company['](#mda)s Consolidated Statements of Income and Comprehensive Income.

The Company is a party to a joint venture in which it owns a 37.5% economic interest. The Company accounts for this joint venture under the equity method of accounting because the Company exercises significant influence over, but does not control, this entity.

The consolidated results of operations for the interim periods presented are not necessarily indicative of the results to be experienced for the entire fiscal year. In addition, the accompanying unaudited Consolidated Financial Statements and the notes thereto should be read in conjunction with the Consolidated Financial Statements and the notes thereto included in the Company's most recent Annual Report on Form 10-K (the "Form 10-K").

**New Accounting Pronouncements**

In December 2023, accounting guidance related to income tax disclosures was issued which will require additional disclosure in the Company's income tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. The accounting guidance will also require the Company to disaggregate its income taxes paid disclosure by federal and state jurisdictions, with further disaggregation required for significant state jurisdictions. The guidance is effective for annual periods beginning after December 15, 2024. We expect this standard to impact our disclosures with no impact to our results of operations, cash flows, or financial condition.

**2. Cash Equivalents and Investments:**

As of June 30, 2025 and December 31, 2024, the Company['](#mda)s cash equivalents consisted entirely of money market funds totaling $5.3 million and $9.3 million, respectively.

Investments held are all classified as current and at June 30, 2025 and December 31, 2024 are summarized as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
| Corporate securities | $50232 | $46411 |
| U.S. Treasury securities | 44423 | 40590 |
| Municipal debt securities | 20183 | 22294 |
| Federal home loan securities | 6746 | 6640 |
| Certificates of deposit | 2010 | 2631 |
|  | $123594 | $118566 |

---

**3. Fair Value Measurements:**

The accounting guidance establishes a fair value hierarchy that prioritizes valuation inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of three levels:

Level 1 – inputs are based upon unadjusted quoted prices for identical instruments traded in active markets.

------

Level 2 – inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 – inputs are generally unobservable and typically reflect management's estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models and similar techniques.

The following table presents information about the Company's financial instruments that are accounted for at fair value on a recurring basis at June 30, 2025 and December 31, 2024 (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  |  | **Fair Value** | **Fair Value** |
|  | **Fair Value<br>Category** | **June 30, 2025** | **December 31, 2024** |
| Assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Money market funds | Level 1 | $5290 | $9295 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term investments | Level 2 | 123594 | 118566 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mutual funds | Level 1 | 18872 | 18581 |

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The following table presents information about the Company's financial instruments that are not carried at fair value at June 30, 2025 and December 31, 2024 (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
|  | **Carrying<br>Amount** | **Fair<br>Value** | **Carrying<br>Amount** | **Fair<br>Value** |
| Liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;2030 Notes | $400000 | $392000 | $400000 | $382000 |

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The carrying amounts of cash equivalents, accounts receivable and accounts payable and accrued expenses approximate fair value due to the short maturities of the respective instruments.

**4. Accounts Receivable and Net Revenue:** 

Patient service revenue is recognized at the time services are provided by the Company's affiliated physicians. The Company's performance obligations related to the delivery of services to patients are satisfied at the time of service. Accordingly, there are no performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period with respect to patient service revenue. Almost all of the Company's patient service revenue is reimbursed by government-sponsored healthcare programs ("GHC Programs") and third-party insurance payors. Payments for services rendered to the Company's patients are generally less than billed charges. The Company monitors its revenue and receivables from these sources and records an estimated contractual allowance to properly account for the anticipated differences between billed and reimbursed amounts.

Accordingly, patient service revenue is presented net of an estimated provision for contractual adjustments and uncollectibles. The Company estimates allowances for contractual adjustments and uncollectibles on accounts receivable based upon historical experience and other factors, including days sales outstanding ("DSO") for accounts receivable, evaluation of expected adjustments and delinquency rates, past adjustments and collection experience in relation to amounts billed, an aging of accounts receivable, current contract and reimbursement terms, changes in payor mix and other relevant information. Contractual adjustments result from the difference between the physician rates for services performed and the reimbursements by GHC Programs and third-party insurance payors for such services.

Collection of patient service revenue the Company expects to receive is normally a function of providing complete and correct billing information to the GHC Programs and third-party insurance payors within the various filing deadlines and typically occurs within 30 to 60 days of billing.

Some of the Company's hospital agreements require hospitals to pay the Company administrative fees. Some agreements provide for fees if the hospital does not generate sufficient patient volume in order to guarantee that the Company receives a specified minimum revenue level. The Company also receives fees from hospitals for administrative services performed by its affiliated physicians providing medical director or other services at the hospital.

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The following table summarizes the Company's net revenue by category (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Net patient service revenue | $397410 | $432847 | $786788 | $854678 |
| Hospital contract administrative fees | 68224 | 70913 | 133408 | 142716 |
| Other revenue | 3210 | 536 | 7007 | 2003 |
|  | $468844 | $504296 | $927203 | $999397 |

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The approximate percentage of net patient service revenue by type of payor was as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Contracted managed care | 71% | 71% | 70% | 71% |
| Government | 23 | 23 | 24 | 24 |
| Other third-parties | 4 | 4 | 4 | 3 |
| Private-pay patients | 2 | 2 | 2 | 2 |
|  | 100% | 100% | 100% | 100% |

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**5. Goodwill, Long Lived Asset Impairments and Loss on Disposal of Businesses:**

During the second quarter of 2024, the Company experienced a triggering event, due to a sustained decline in its stock price and a market capitalization below the Company's book equity value. As a result, the Company performed an interim goodwill impairment assessment. This assessment resulted in a non-cash goodwill impairment charge of $154.2 million.

During the second quarter of 2024, the Company recognized fixed asset impairments of $20.1 million and intangible asset impairments of $7.7 million associated with the exit of its affiliated office-based practices. In addition, the Company recognized a loss on disposal of businesses of $10.9 million associated with the exit of its primary and urgent care service line.

**6. Accounts Payable and Accrued Expenses:** 

Accounts payable and accrued expenses consist of the following (in thousands):

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| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
| Accounts payable | $42065 | $46431 |
| Accrued salaries and incentive compensation | 133585 | 215357 |
| Accrued payroll taxes and benefits | 31377 | 35450 |
| Accrued professional liabilities | 30607 | 30430 |
| Accrued interest | 8157 | 8159 |
| Other accrued expenses | 57569 | 62863 |
|  | $303360 | $398690 |

---

The net decrease in accrued salaries and incentive compensation of $81.8 million, from December 31, 2024 to June 30, 2025, is primarily due to the payment of performance-based incentive compensation, principally to the Company's affiliated physicians, partially offset by performance-based incentive compensation accrued during the six months ended June 30, 2025. A majority of the Company's payments for performance-based incentive compensation is paid annually during the first quarter.

7. **Line of Credit and Long-Term Debt:**

On February 11, 2022, the Company issued $400.0 million of 5.375% unsecured senior notes due 2030 (the "2030 Notes"). Interest on the 2030 Notes accrues at the rate of 5.375% per annum, or $21.5 million, and is payable semi-annually in arrears on February 15 and August 15, beginning on August 15, 2022. The Company['](#mda)s obligations under the 2030 Notes are guaranteed on an unsecured senior basis by the same subsidiaries and affiliated professional contractors that guarantee the Amended Credit Agreement (as defined below). The indenture under which the 2030 Notes are issued, among other things, limits the Company['](#mda)s ability to (1) incur liens, (2) enter into sale and lease-back transactions and (3) merge or dispose of all or substantially all of its assets, in all cases, subject to a number of customary exceptions. Although the Company is not required to make mandatory redemption or sinking fund payments with respect to the 2030 Notes, upon the occurrence of a change in control, the Company may be required to repurchase the 2030 Notes at a purchase price equal to 101% of the aggregate principal amount of the 2030 Notes repurchased plus accrued and unpaid interest.

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Concurrently with the issuance of the 2030 Notes, the Company amended its credit agreement (the "Credit Agreement", and such amendment, the **"**Credit Agreement Amendment**"**). The Credit Agreement Amendment, among other things, (i) refinanced the prior unsecured revolving credit facility with a $450 million unsecured revolving credit facility, including a $37.5 million sub-facility for the issuance of letters of credit (the "Revolving Credit Line"), and a $250 million term A loan facility ("Term A Loan") and (ii) removed JPMorgan Chase Bank, N.A., as the administrative agent under the Credit Agreement and appointed Bank of America, N.A. as the administrative agent for the lenders.

The Credit Agreement, as amended by the Credit Agreement Amendment (the "Amended Credit Agreement") matures on February 11, 2027 and is guaranteed on an unsecured basis by substantially all of the Company['](#mda)s subsidiaries and affiliated professional contractors. At the Company['](#mda)s option, borrowings under the Amended Credit Agreement bear interest at (i) the Alternate Base Rate (defined as the highest of (a) the prime rate as announced by Bank of America, N.A., (b) the Federal Funds Rate plus 0.50% and (c) Term Secured Overnight Financing Rate ("SOFR") for an interest period of one month plus 1.00% with a 1.00% floor) plus an applicable margin rate of 0.50% for the first two fiscal quarters after the date of the Credit Agreement Amendment, and thereafter at an applicable margin rate ranging from 0.125% to 0.750% based on the Company['](#mda)s consolidated net leverage ratio or (ii) Term SOFR rate (calculated as the Secured Overnight Financing Rate published on the applicable Reuters screen page plus a spread adjustment of 0.10%, 0.15% or 0.25% depending on if the Company selects a one-month, three-month or six-month interest period, respectively, for the applicable loan with a 0% floor), plus an applicable margin rate of 1.50% for the first two full fiscal quarters after the date of the Credit Agreement Amendment, and thereafter at an applicable margin rate ranging from 1.125% to 1.750% based on the Company['](#mda)s consolidated net leverage ratio. The Amended Credit Agreement also provides for other customary fees and charges, including an unused commitment fee with respect to the Revolving Credit Line ranging from 0.150% to 0.200% of the unused lending commitments under the Revolving Credit Line, based on the Company['](#mda)s consolidated net leverage ratio.

The Amended Credit Agreement contains customary covenants and restrictions, including covenants that require the Company to maintain a minimum interest coverage ratio, a maximum consolidated net leverage ratio and to comply with laws, and restrictions on the ability to pay dividends, incur indebtedness or liens and make certain other distributions subject to baskets and exceptions, in each case, as specified therein. Failure to comply with these covenants would constitute an event of default under the Amended Credit Agreement, notwithstanding the ability of the Company to meet its debt service obligations. The Amended Credit Agreement includes various customary remedies for the lenders following an event of default, including the acceleration of repayment of outstanding amounts under the Amended Credit Agreement. In addition, the Company may increase the principal amount of the Revolving Credit Line or incur additional term loans under the Amended Credit Agreement in an aggregate principal amount such that on a pro forma basis after giving effect to such increase or additional term loans, the Company would be in compliance with the financial covenants, subject to the satisfaction of specified conditions and additional caps in the event that the Amended Credit Agreement is secured.

At June 30, 2025, the Company had an outstanding principal balance on the Amended Credit Agreement of $206.3 million, composed of the Term A Loan. There was no outstanding balance under the Revolving Credit Line at June 30, 2025. The Company had $450.0 million available on its Revolving Credit Line at June 30, 2025.

At June 30, 2025, the Company had an outstanding principal balance of $400.0 million on the 2030 Notes.

**8. Common and Common Equivalent Shares:**

Basic net income per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per common share is calculated by dividing net income by the weighted average number of common and potential common shares outstanding during the period. Potential common shares consist of outstanding restricted stock and is calculated using the treasury stock method.

The calculation of shares used in the basic and diluted net income per common share calculation for the three and six months ended June 30, 2025 and 2024 is as follows (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Weighted average number of common shares outstanding | 84797 | 83332 | 84653 | 83074 |
| Weighted average number of dilutive common share<br> equivalents<sup>(a)</sup> | 732 |  | 864 |  |
| Weighted average number of common and common<br> equivalent shares outstanding | 85529 | 83332 | 85517 | 83074 |
| Antidilutive restricted stock not included in the diluted net income per common share calculation | 325 | 916 | 168 | 661 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Due to a loss for the three and six months ended June 30, 2024, 0.1 million and 0.3 million incremental shares, respectively, are not included because the effect would be antidilutive.

**9. Stock Incentive Plans and Stock Purchase Plans:**

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The Company's Amended and Restated 2008 Incentive Compensation Plan (the "Amended and Restated 2008 Incentive Plan") provides for grants of stock options, stock appreciation rights, restricted stock, deferred stock, and other stock-related awards and performance awards that may be settled in cash, stock or other property.

Under the Amended and Restated 2008 Incentive Plan, options to purchase shares of common stock may be granted at a price not less than the fair market value of the shares on the date of grant. The options must be exercised within 10 years from the date of grant and generally become exercisable on a pro rata basis over a three-year period from the date of grant. The Company issues new shares of its common stock upon exercise of its stock options. Restricted stock awards generally vest over periods of three years upon the fulfillment of specified service-based conditions and in certain instances performance-based conditions. Deferred stock awards generally vest upon the satisfaction of specified performance-based conditions and service-based conditions. The Company recognizes compensation expense related to its restricted stock and deferred stock awards ratably over the corresponding vesting periods. During the six months ended June 30, 2025, the Company granted 1.0 million shares of restricted stock and 0.6 million of performance-based restricted stock units to its employees and non-employee directors under the Amended and Restated 2008 Incentive Plan. At June 30, 2025, the Company had 2.4 million shares available for future grants and awards under the Amended and Restated 2008 Incentive Plan.

Under the Company's Amended and Restated 1996 Non-Qualified Employee Stock Purchase Plan, as amended (the "ESPP"), employees are permitted to purchase the Company['](#mda)s common stock at 85% of market value on January 1st, April 1st, July 1st and October 1st of each year. Under the Company's 2015 Non-Qualified Stock Purchase Plan (the "SPP"), certain eligible non-employee service providers are permitted to purchase the Company's common stock at 90% of market value on January 1st, April 1st, July 1st and October 1st of each year.

The Company recognizes stock-based compensation expense for the discount received by participating employees and non-employee service providers. During the six months ended June 30, 2025, 0.2 million shares were issued under the ESPP. At June 30, 2025, the Company had approximately 1.4 million shares reserved for issuance under the ESPP. At June 30, 2025, the Company had approximately 61,000 shares in the aggregate reserved for issuance under the SPP. No shares have been issued under the SPP since 2020.

During the three and six months ended June 30, 2025 and 2024, the Company recognized stock-based compensation expense of $2.0 million and $4.3 million, and $2.0 million and $4.9 million, respectively.

**10. Common Stock Repurchase Programs:** 

In July 2013, the Company's Board of Directors authorized the repurchase of shares of the Company's common stock up to an amount sufficient to offset the dilutive impact from the issuance of shares under the Company's equity compensation programs. The share repurchase program allows the Company to make open market purchases from time-to-time based on general economic and market conditions and trading restrictions. The repurchase program also allows for the repurchase of shares of the Company's common stock to offset the dilutive impact from the issuance of shares, if any, related to the Company's acquisition program. No shares were purchased under this program during the six months ended June 30, 2025.

In August 2018, the Company announced that its Board of Directors had authorized the repurchase of up to $500.0 million of the Company's common stock in addition to its existing share repurchase program, of which $2.9 million remained available for repurchase as of December 31, 2024. Under this share repurchase program, during the six months ended June 30, 2025, the Company purchased a nominal number of shares of its common stock for $1.8 million representing shares withheld to satisfy minimum statutory withholding obligations in connection with the vesting of restricted stock, resulting in $1.1 million remaining available for repurchase under this authorization as of June 30, 2025.

The Company intends to utilize various methods to effect any future share repurchases, including, among others, open market purchases and accelerated share repurchase programs. The amount and timing of repurchases will depend upon several factors, including general economic and market conditions and trading restrictions.

**11. Segment Reporting:**

The Company has one reportable segment, which is also its single reporting unit, for purposes of presenting financial information in accordance with the accounting guidance for segment reporting. Financial results for all practices are managed on a consolidated basis. The chief operating decision maker assesses performance and decides how to allocate resources based on net income and total assets as reported in the Company['](#mda)s Consolidated Financial Statements. Significant segment expenses are practice salaries and benefits and general and administrative expenses as reported on the Company['](#mda)s Consolidated Statements of Income and Comprehensive Income. Refer to the Consolidated Financial Statements for the Company['](#mda)s segment revenue, significant segment expenses, other segment expenses and net income.

**12. Commitments and Contingencies:** 

The Company expects that audits, inquiries and investigations from government authorities and agencies will occur in the ordinary course of business. Such audits, inquiries and investigations and their ultimate resolutions, individually or in the aggregate, could have a material adverse effect on the Company['](#mda)s business, financial condition, results of operations, cash flows and the trading

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price of its securities. The Company has not included an accrual for these matters as of June 30, 2025 in its Consolidated Financial Statements, as the variables affecting any potential eventual liability depend on the currently unknown facts and circumstances that arise out of, and are specific to, any particular future audit, inquiry and investigation and cannot be reasonably estimated at this time.

In the ordinary course of business, the Company becomes involved in pending and threatened legal actions and proceedings, most of which involve claims of medical malpractice related to medical services provided by the Company['](#mda)s affiliated physicians. The Company['](#mda)s contracts with hospitals generally require the Company to indemnify them and their affiliates for losses resulting from the negligence of the Company['](#mda)s affiliated physicians. The Company may also become subject to other lawsuits which could involve large claims and significant costs. The Company believes, based upon a review of pending actions and proceedings, that the outcome of such legal actions and proceedings will not have a material adverse effect on its business, financial condition, results of operations, cash flows and the trading price of its securities. The outcome of such actions and proceedings, however, cannot be predicted with certainty and an unfavorable resolution of one or more of them could have a material adverse effect on the Company['](#mda)s business, financial condition, results of operations, cash flows and the trading price of its securities.

Although the Company currently maintains liability insurance coverage intended to cover professional liability and certain other claims, the Company cannot assure that its insurance coverage will be adequate to cover liabilities arising out of claims asserted against it in the future where the outcomes of such claims are unfavorable. With respect to professional liability risk, the Company generally self-insures a portion of this risk through its wholly owned captive insurance subsidiary. Liabilities in excess of the Company['](#mda)s insurance coverage, including coverage for professional liability and certain other claims, could have a material adverse effect on the Company['](#mda)s business, financial condition, results of operations, cash flows and the trading price of its securities.

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**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations**

The following discussion highlights the principal factors that have affected our financial condition and results of operations, as well as our liquidity and capital resources, for the periods described. This discussion should be read in conjunction with the unaudited Consolidated Financial Statements and the notes thereto included in this Quarterly Report. In addition, reference is made to our audited consolidated financial statements and notes thereto and related Management's Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the Securities and Exchange Commission on February 20, 2025 (the "2024 Form 10-K"). As used in this Quarterly Report, the terms "Pediatrix", the "Company", "we", "us" and "our" refer to the parent company, Pediatrix Medical Group, Inc., a Florida corporation, and the consolidated subsidiaries through which its businesses are actually conducted (collectively, "PMG"), together with PMG's affiliated business corporations or professional associations, professional corporations, limited liability companies and partnerships ("affiliated professional contractors"). Certain subsidiaries of PMG have contracts with our affiliated professional contractors, which are separate legal entities that provide physician services in certain states. The following discussion contains forward-looking statements. Please see the Company's 2024 Form 10-K, including Item 1A., Risk Factors, for a discussion of the uncertainties, risks and assumptions associated with these forward-looking statements. In addition, please see "Caution Concerning Forward-Looking Statements" below.

**Overview**

Pediatrix is a leading provider of physician services including newborn, maternal-fetal, and other pediatric subspecialty care. Our national network is comprised of affiliated physicians who provide clinical care in 36 states. Our affiliated physicians provide neonatal clinical care, primarily within hospital-based neonatal intensive care units ("NICUs"), to babies born prematurely or with medical complications and maternal-fetal and obstetrical medical care to expectant mothers experiencing complicated pregnancies, primarily in areas where our affiliated neonatal physicians practice. We also provide services across multiple other pediatric subspecialties.

***General Economic Conditions and Other Factors***

Our operations and performance depend significantly on economic conditions. During the three months ended June 30, 2025, the percentage of our patient service revenue being reimbursed under government-sponsored healthcare programs ("GHC Programs") remained stable as compared to the three months ended June 30, 2024. However, we could experience shifts toward GHC Programs if changes occur in economic behaviors or population demographics within geographic locations in which we provide services, including an increase in unemployment and underemployment as well as losses of commercial health insurance. Payments received from GHC Programs are substantially less for equivalent services than payments received from commercial insurance payors. In addition, costs of managed care premiums and patient responsibility amounts continue to rise, and accordingly, we may experience lower net revenue resulting from increased bad debt due to patients' inability to pay for certain services.

***Office-Based Practice Exits*** 

During the second quarter of 2024, we formalized our physician practice optimization plans, resulting in a decision to exit almost all of our affiliated office-based practices, other than maternal-fetal medicine. Over the course of many years, we expanded our pediatric service lines and footprint to provide specialized care to more patients, including through our office-based portfolio of practices. This added complexity to our operations over time and, accordingly, increased costs that resulted in operating challenges primarily for our office-based portfolio of practices. Recognizing this and our need to adapt to the current healthcare climate, we made the decision to return to a hospital-based and maternal-fetal medicine-focused organization. As of December 31, 2024, the exits of our pediatric office-based practices were completed. Additionally, the Company exited its primary and urgent care service line during 2024 based on a review of the cost and time that would be required to build the platform to scale.

***"Surprise" Billing Legislation*** 

In late 2020, Congress enacted the No Surprises Act ("NSA") legislation intended to protect patients from "surprise" medical bills when certain services are furnished by providers who are not in-network with the patient's insurer. Effective January 1, 2022, if a patient's insurance plan or coverage is subject to the NSA, providers are not permitted to send such patient an unexpected or "surprise" medical bill that arises from out-of-network emergency care provided at certain out-of-network facilities or at certain in-network facilities by out-of-network emergency providers, as well as nonemergency care provided at certain in-network facilities by out-of-network providers without the patient's informed consent (as defined by the NSA). Many states have legislation on this topic and will continue to modify and review their laws pertaining to surprise billing.

For claims subject to the NSA, insurers are required to calculate the patient's total cost-sharing amount pursuant to rules set forth in the NSA and its implementing regulations which, in some cases, can be calculated by reference to the applicable qualifying payment amount for the items or services received. The patient's cost-sharing amount for out-of-network services covered by the NSA must be no more than the patient's in-network cost-sharing amounts. Patient cost-sharing amounts for items and services subject to the NSA count toward the patient's health plan deductible and out-of-pocket cost-sharing limits. For claims subject to the NSA, providers are generally not permitted to balance bill patients beyond this cost-sharing amount. An out-of-network provider is only permitted to bill a patient more than the cost-sharing amount allowed under the NSA for certain types of services if the provider satisfies all aspects of an informed consent process set forth in the NSA's implementing regulations. Providers that violate these surprise billing prohibitions may be subject to enforcement actions by the Centers for Medicare and Medicaid Services or by states, one or both of which may be tasked with investigating potential non-compliance as a result of patient complaints, as well as any state-specific penalties enforcement action and federal civil monetary penalties.

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For claims subject to the NSA, including many emergency care services, out-of-network providers will be paid an initial amount determined by the plan; if a provider is not satisfied with the initial amount paid for the services, the provider can pursue recourse through an independent dispute resolution ("IDR") process. The outcome of each IDR dispute is generally binding on both the provider and payor with respect to the particular claims at issue in that dispute but may not affect an insurer's future offers of payment. Accordingly, we cannot predict how these IDR results will compare to the rates that our affiliated physicians customarily receive for their services. These measures could limit the amount we can charge and recover for services we furnish where we have not contracted with the patient's insurer, and therefore could have a material adverse effect on our business, financial condition, results of operations, cash flows and the trading price of our securities.

***Healthcare Reform***

The Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010 (collectively, the "ACA") has altered how health care is delivered and reimbursed in the U.S. and contains various provisions, including the establishment of health insurance exchanges to facilitate the purchase of qualified health plans, expanded Medicaid eligibility, subsidized insurance premiums and additional requirements and incentives for businesses to provide healthcare benefits. Other provisions of the ACA have expanded the scope and reach of the False Claims Act and other healthcare fraud and abuse laws. The status of the ACA may be subject to change as a result of political, legislative, regulatory, and administrative developments, as well as judicial proceedings. As a result, we could be affected by potential changes to various aspects of the ACA, including changes to subsidies, healthcare insurance marketplaces and Medicaid expansion. We cannot say for certain whether there will be additional future challenges to the ACA or what impact, if any, such challenges may have on our business. Changes resulting from various legal proceedings, and any legislative or administrative change to the current healthcare financing system, could have a material adverse effect on our business, financial condition, results of operations, cash flows and the trading price of our securities.

In addition to the ACA, there could be changes to other government-sponsored or funded healthcare programs, such as a change to the Medicaid program design or Medicaid coverage and reimbursement rates set forth under federal or state law. These changes, if implemented, could eliminate the guarantee that everyone who is eligible and applies for Medicaid benefits would receive them and could potentially give states new authority to restrict eligibility, cut benefits and/or make it more difficult for people to enroll.

***Medicaid Reform***

The ACA also allows states to expand their Medicaid programs through federal payments that fund most of the cost of increasing the Medicaid eligibility income limit from a state's historic eligibility levels to 133% of the federal poverty level. All of the states in which we operate, however, already cover children in the first year of life and pregnant women if their household income is at or below 133% of the federal poverty level. On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act, which reforms the Medicaid program by eliminating certain financial incentives for states that have expanded their Medicaid programs under the ACA, imposing work requirements on certain adult beneficiaries, and requiring states to increase patient cost-sharing amounts for certain services. We cannot predict with any assurance the ultimate effect of these reforms on reimbursements for our services.

***Non-GAAP Measures***

In our analysis of our results of operations, we use various GAAP and certain non-GAAP financial measures. We have incurred certain expenses that we do not consider representative of our underlying operations, including transformational and restructuring related expenses. Accordingly, we report adjusted earnings before interest, taxes and depreciation and amortization ("Adjusted EBITDA"), defined as net income before interest, taxes, depreciation and amortization, and transformational and restructuring related expenses. Earnings per share has also been adjusted ("Adjusted EPS") and consists of diluted net income per common and common equivalent share adjusted for amortization expense, stock-based compensation expense, transformational and restructuring related expenses and impacts from discrete tax events. For the three and six months ended June 30, 2024, both Adjusted EBITDA and Adjusted EPS are being further adjusted to exclude loss on disposal of businesses and impairment losses.

We believe these measures, in addition to income from operations, net income and diluted net income per common and common equivalent share, provide investors with useful supplemental information to compare and understand our underlying business trends and performance across reporting periods on a consistent basis. These measures should be considered a supplement to, and not a substitute for, financial performance measures determined in accordance with GAAP. In addition, since these non-GAAP measures are not determined in accordance with GAAP, they are susceptible to varying calculations and may not be comparable to other similarly titled measures of other companies. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

For a reconciliation of each of Adjusted EBITDA and Adjusted EPS to the most directly comparable GAAP measures for the three and six months ended June 30, 2025 and 2024, refer to the tables below (in thousands, except per share data).

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Net income (loss) | $39260 | $(153025) | $59997 | $(148990) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 9130 | 10308 | 18284 | 20907 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax provision (benefit) | 15709 | (14703) | 23062 | (10914) |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expense | 5313 | 8791 | 10645 | 19099 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transformational and restructuring related expenses | 3834 | 13579 | 10439 | 22059 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment losses |  | 182034 |  | 182034 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of businesses |  | 10873 |  | 10873 |
| Adjusted EBITDA | $73246 | $57857 | $122427 | $95068 |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** |
|  | **2025** | **2025** | **2024** | **2024** |
| Weighted average diluted shares outstanding | 85529 | 85529 | 83332 | 83332 |
| Net income (loss) and diluted net income (loss) per share | $39260 | $0.46 | $(153025) | $(1.84) |
| Adjustments <sup>(1)</sup>: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization (net of tax of $421 and $533) | 1266 | 0.01 | 1599 | 0.02 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation (net of tax of $503 and $500) | 1508 | 0.02 | 1501 | 0.02 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transformational and restructuring expenses (net of tax of $959 and $3,395) | 2875 | 0.03 | 10184 | 0.12 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment losses (net of tax of $22,438) |  |  | 159596 | 1.92 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of businesses (net of tax of $2,718) |  |  | 8155 | 0.10 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net impact from discrete tax events | 739 | 0.01 | 328 |  |
| Adjusted income and diluted EPS | $45648 | $0.53 | $28338 | $0.34 |

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<sup>(1)</sup> A blended tax rate of 25% was used to calculate the tax effects of the adjustments for the three months ended June 30, 2025 and 2024, other than for impairment losses, due to a portion of the expense being non-deductible.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2025** | **2025** | **2024** | **2024** |
| Weighted average diluted shares outstanding | 85517 | 85517 | 83074 | 83074 |
| Net income (loss) and diluted net income (loss) per share | $59997 | $0.70 | $(148990) | $(1.79) |
| Adjustments <sup>(1)</sup>: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization (net of tax of $851 and $1,396) | 2556 | 0.03 | 4188 | 0.05 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation (net of tax of $1,076 and $1,215) | 3228 | 0.04 | 3647 | 0.04 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transformational and restructuring expenses (net of tax of $2,610 and $5,515) | 7829 | 0.09 | 16544 | 0.20 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment losses (net of tax of $22,438) |  |  | 159596 | 1.92 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of businesses (net of tax of $2,718) |  |  | 8155 | 0.10 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net impact from discrete tax events | 564 | 0.01 | 2004 | 0.02 |
| Adjusted income and diluted EPS | $74174 | $0.87 | $45144 | $0.54 |

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<sup>(1)</sup> A blended tax rate of 25% was used to calculate the tax effects of the adjustments for the six months ended June 30, 2025 and 2024, other than for impairment losses, due to a portion of the expense being non-deductible.

**Results of Operations**

***Three Months Ended June 30, 2025 as Compared to Three Months Ended June 30, 2024***

Our net revenue was $468.8 million for the three months ended June 30, 2025, as compared to $504.3 million for the same period in 2024. The decrease in net revenue of $35.5 million, or 7.0%, was primarily attributable to non-same unit activity, primarily from practice dispositions, partially offset by an increase in same-unit revenue. Same units are those units at which we provided services for the entire current period and the entire comparable period. Same-unit net revenue increased by $27.9 million, or 6.4%. The increase in same-unit revenue was comprised of an increase of $15.0 million, or 3.5%, from net reimbursement-related factors and $12.9 million, or 2.9%, related to patient service volumes. The net increase in revenue related to net reimbursement-related factors was primarily due to an increase in revenue resulting from increased patient acuity, primarily in neonatology, improved collection activity and an increase in administrative fees from our hospital partners. The increase in revenue from patient service volumes was primarily related to increases in our neonatology and maternal-fetal medicine services.

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Practice salaries and benefits decreased $34.3 million, or 9.6%, to $323.5 million for the three months ended June 30, 2025, as compared to $357.8 million for the same period in 2024. The decrease of $34.3 million was primarily attributable to non-same unit activity, primarily from practice dispositions, partially offset by an increase in clinical compensation expense, including incentive compensation based on practice results, at our existing units.

Practice supplies and other operating expenses decreased $11.8 million, or 36.3%, to $20.6 million for the three months ended June 30, 2025, as compared to $32.4 million for the same period in 2024. The decrease was primarily attributable to non-same unit activity, primarily from practice dispositions.

General and administrative expenses primarily include all billing and collection functions and all other salaries, benefits, supplies and operating expenses not specifically related to the day-to-day operations of our affiliated physician practices and services. General and administrative expenses were $55.7 million for the three months ended June 30, 2025, as compared to $56.6 million for the same period in 2024. The net decrease of $0.9 million was primarily related to net staffing reductions and lower other expenses, including professional services and legal fees, partially offset by increases in incentive compensation expense based on financial results. General and administrative expenses as a percentage of net revenue was 11.9% for the three months ended June 30, 2025, as compared to 11.2% for the same period in 2024.

Depreciation and amortization expense was $5.3 million for the three months ended June 30, 2025, as compared to $8.8 million for the same period in 2024. The net decrease of $3.5 million was primarily related to non-same unit activity, primarily practice dispositions.

Transformational and restructuring related expenses were $3.8 million for the three months ended June 30, 2025 as compared to $13.6 million for the same period in 2024. The expenses during 2025 and 2024 primarily related to position eliminations across various shared services departments and revenue cycle management transition activities.

Goodwill impairment was $154.2 million for the three months ended June 30, 2024, resulting from the triggering event during the second quarter of 2024 based on a sustained stock price decline.

Long-lived asset impairments were $27.8 million for the three months ended June 30, 2024, resulting from the practice portfolio management plan.

Loss on disposal of businesses was $10.9 million for the three months ended June 30, 2024, resulting from the disposals of our primary and urgent care practices.

Income from operations increased $217.6 million, or 138.0%, to $59.9 million for the three months ended June 30, 2025, as compared to loss from operations of $157.7 million for the same period in 2024. Our operating margin was 12.8% for the three months ended June 30, 2025, as compared to (31.3)% for the same period in 2024. The increase in our operating margin was primarily due to favorable same-unit results, primarily related to same-unit revenue growth, and the impact from practice disposition activity. Excluding impairment activity, transformation and restructuring related expenses and loss on disposal of businesses, our income from operations was $63.7 million and $48.8 million, and our operating margin was 13.6% and 9.7% for the three months ended June 30, 2025 and 2024, respectively. We believe excluding the impacts from impairment activity, transformational and restructuring related activity and loss on disposal of businesses provides a more comparable view of our operating income and operating margin.

Total non-operating expenses were $4.9 million for the three months ended June 30, 2025, as compared to $10.0 million for the same period in 2024. The net decrease in non-operating expenses was primarily related to an increase in interest income due to higher cash balances and a decrease in interest expense from modestly lower interest rates and borrowings.

Our effective income tax rate ("tax rate") was 28.6% for the three months ended June 30, 2025 as compared to 8.8% for the three months ended June 30, 2024. The tax rate for the three months ended June 30, 2025 and 2024 includes net discrete tax expense of $0.7 million and $0.3 million, respectively. After excluding discrete tax impacts during the three months ended June 30, 2025 and 2024, our tax rate was 27.2% and 9.0%, respectively. We believe excluding discrete tax impacts provides a more comparable view of our tax rate. The tax rate for the three months ended June 30, 2024 reflects the effects of the non-cash goodwill impairment charge and the pre-tax loss generated excluding the impairment charge.

Net income was $39.3 million for the three months ended June 30, 2025, as compared to net loss of $153.0 million for the same period in 2024. Adjusted EBITDA was $73.2 million for the three months ended June 30, 2025, as compared to $57.9 million for the same period in 2024. The increase in our Adjusted EBITDA was primarily due to net favorable impacts from our same-unit results and practice disposition activity.

Diluted net income per common and common equivalent share was $0.46 on weighted average shares outstanding of 85.5 million for the three months ended June 30, 2025, as compared to diluted net loss per common and common equivalent share of $1.84 on weighted average shares outstanding of 83.3 million for the same period in 2024. Adjusted EPS was $0.53 for the three months ended June 30, 2025, as compared to $0.34 for the same period in 2024.

***Six Months Ended June 30, 2025 as Compared to Six Months Ended June 30, 2024***

Our net revenue was $927.2 million for the six months ended June 30, 2025, as compared to $999.4 million for the same period in 2024. The decrease in net revenue of $72.2 million, or 7.2%, was primarily attributable to non-same unit activity, primarily from practice dispositions, partially offset by an increase in same-unit revenue. Same units are those units at which we provided services for the entire current

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period and the entire comparable period. Same-unit net revenue increased by $52.9 million, or 6.2%. The increase in same-unit net revenue was comprised of an increase of $34.9 million, or 4.1%, from net reimbursement-related factors and an increase of $18.0 million, or 2.1%, related to patient service volumes. The net increase in revenue related to net reimbursement-related factors was primarily due to an increase in revenue resulting from increased patient acuity, primarily in neonatology, an increase in administrative fees from our hospital partners, a favorable shift in payor mix and modest improvements in managed care contracting. The increase in revenue from patient service volumes was primarily related to increases in our neonatology and maternal-fetal medicine services.

Practice salaries and benefits decreased $66.4 million, or 9.1%, to $660.5 million for the six months ended June 30, 2025, as compared to $726.9 million for the same period in 2024. The decrease of $66.4 million was primarily attributable to non-same unit activity, primarily from practice dispositions, partially offset by an increase in clinical compensation expense, including incentive compensation based on practice results, at our existing units.

Practice supplies and other operating expenses decreased $24.2 million, or 38.1%, to $39.3 million for the six months ended June 30, 2025, as compared to $63.5 million for the same period in 2024. The decrease was primarily attributable to non-same unit activity, primarily from practice dispositions.

General and administrative expenses primarily include all billing and collection functions and all other salaries, benefits, supplies and operating expenses not specifically identifiable to the day-to-day operations of our physician practices and services. General and administrative expenses were $114.3 million for the six months ended June 30, 2025, as compared to $116.8 million for the same period in 2024. The net decrease of $2.5 million was primarily related to net staffing reductions, partially offset by increases in other expenses, including billing and collection fees and information technology. General and administrative expenses as a percentage of net revenue were 12.3% for the six months ended June 30, 2025, as compared to 11.7% for the same period in 2024.

Depreciation and amortization expense was $10.6 million for the six months ended June 30, 2025, as compared to $19.1 million for the same period in 2024. The net decrease of $8.5 million was primarily related to non-same unit activity, primarily practice dispositions.

Transformational and restructuring related expenses were $10.4 million for the six months ended June 30, 2025 as compared to $22.1 million for the same period in 2024. The expenses during 2025 and 2024 primarily related to position eliminations across various shared services departments and revenue cycle management transition activities.

Goodwill impairment was $154.2 million for the six months ended June 30, 2024, resulting from the triggering event during the second quarter based on a sustained stock price decline.

Long-lived asset impairments were $27.8 million for the six months ended June 30, 2024, resulting from the practice portfolio management plan.

Loss on disposal of businesses was $10.9 million for the six months ended June 30, 2024, resulting from the disposals of our primary and urgent care practices.

Income from operations increased $233.8 million, or 164.8%, to $92.0 million for the six months ended June 30, 2025, as compared to loss from operations of $141.8 million for the same period in 2024. Our operating margin was 9.9% for the six months ended June 30, 2025, as compared to (14.2)% for the same period in 2024. The increase in our operating margin was primarily due to the impact from practice disposition activity and favorable same-unit results, primarily related to same-unit revenue growth. Excluding impairment activity, transformation and restructuring related expenses and loss on disposal of businesses, our income from operations was $102.4 million and $73.2 million, and our operating margin was 11.0% and 7.3% for the six months ended June 30, 2025 and 2024, respectively. We believe excluding the impacts from impairment activity, transformational and restructuring related activity and loss on disposal of businesses provides a more comparable view of our operating income and operating margin.

Total non-operating expenses were $8.9 million for the six months ended June 30, 2025, as compared to $18.1 million for the same period in 2024. The net decrease in non-operating expenses was primarily related to an increase in interest income due to higher cash balances and a decrease in interest expense from modestly lower borrowings and interest rates.

Our tax rate was 27.8% for the six months ended June 30, 2025 as compared to 6.8% for the six months ended June 30, 2024. The tax rates for the six months ended June 30, 2025 and 2024 include net discrete tax expense of $0.6 million and $2.0 million, respectively. After excluding discrete tax impacts during the six months ended June 30, 2025 and 2024, our tax rate was 27.1% and 8.1%, respectively. We believe excluding discrete tax impacts provides a more comparable view of our tax rate. The tax rate for the six months ended June 30, 2024 reflects the effects of the non-cash goodwill impairment charge and the pre-tax loss generated excluding the impairment charge.

Net income was $60.0 million for the six months ended June 30, 2025, as compared to net loss of $149.0 million for the same period in 2024. Adjusted EBITDA was $122.4 million for the six months ended June 30, 2025, as compared to $95.1 million for the same period in 2024. The increase in our Adjusted EBITDA was primarily due to net favorable impacts from our same-unit results and practice disposition activity.

Diluted net income per common and common equivalent share was $0.70 on weighted average shares outstanding of 85.5 million for the six months ended June 30, 2025, as compared to diluted net loss per common and common equivalent share of $1.79 on weighted average shares outstanding of 83.1 million for the same period in 2024. Adjusted EPS was $0.87 for the six months ended June 30, 2025, as compared to $0.54 for the same period in 2024.

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**Liquidity and Capital Resources**

As of June 30, 2025, we had $224.7 million of cash and cash equivalents as compared to $229.9 million at December 31, 2024. Additionally, we had working capital of $272.0 million at June 30, 2025, an increase of $66.5 million from working capital of $205.5 million at December 31, 2024. The net increase in working capital is primarily due to net favorable impacts in our same-unit results, primarily related to an increase in revenue.

***Cash Flows***

Cash provided by (used in) operating, investing and financing activities from continuing operations is summarized as follows (in thousands):

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| | | |
|:---|:---|:---|
|  | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2025** | **2024** |
| Operating activities | $22020 | $(13280) |
| Investing activities | (14618) | (29130) |
| Financing activities | (10294) | (6451) |

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***Operating Activities***

During the six months ended June 30, 2025, our net cash provided by operating activities from continuing operations was $22.0 million, compared to net cash used in operating activities from continuing operations of $13.3 million for the same period in 2024. The net increase in cash provided of $35.3 million was primarily due to higher earnings and increases in cash flow from accounts receivable.

During the six months ended June 30, 2025, cash inflow from accounts receivable was $21.2 million, as compared to a cash outflow of $0.9 million for the same period in 2024. The increase in cash flow from accounts receivable for the six months ended June 30, 2025 as compared to the prior year period was primarily due to a decrease in days sales outstanding ("DSO").

DSO is one of the key factors that we use to evaluate the condition of our accounts receivable and the related allowances for contractual adjustments and uncollectibles. DSO reflects the timeliness of cash collections on billed revenue and the level of reserves on outstanding accounts receivable. Our DSO was 46.4 days at June 30, 2025 as compared to 47.6 days at December 31, 2024 and 49.5 days at June 30, 2024. The decrease in our DSO from December 31, 2024 and June 30, 2024 was primarily related to improved cash collections at our existing units.

***Investing Activities***

During the six months ended June 30, 2025, our net cash used in investing activities of $14.6 million consisted of capital expenditures of $7.8 million, $3.6 million of other activity, primarily related to practice dispositions, and net purchases of investments of $3.1 million.

***Financing Activities***

During the six months ended June 30, 2025, our net cash used in financing activities of $10.3 million consisted primarily of payments on our Term A Loan (as defined below).

***Liquidity***

On February 11, 2022, we issued $400.0 million of 5.375% unsecured senior notes due 2030 (the "2030 Notes"). Concurrently with the issuance of the 2030 Notes, we amended and restated our credit agreement (the "Credit Agreement", and such amendment and restatement, the "Credit Agreement Amendment"). The Credit Agreement, as amended by the Credit Agreement Amendment (the "Amended Credit Agreement"), among other things, (i) refinanced the prior unsecured revolving credit facility with a $450.0 million unsecured revolving credit facility, including a $37.5 million sub-facility for the issuance of letters of credit (the "Revolving Credit Line"), and a new $250.0 million term A loan facility ("Term A Loan") and (ii) removed JPMorgan Chase Bank, N.A., as the administrative agent under the Credit Agreement and appointed Bank of America, N.A. as the administrative agent for the lenders under the Amended Credit Agreement.

The Amended Credit Agreement matures on February 11, 2027 and is guaranteed on an unsecured basis by substantially all of our subsidiaries and affiliated professional contractors. At our option, borrowings under the Amended Credit Agreement bear interest at (i) the Alternate Base Rate (defined as the highest of (a) the prime rate as announced by Bank of America, N.A., (b) the Federal Funds Rate plus 0.50% and (c) Term Secured Overnight Financing Rate ("SOFR") for an interest period of one month plus 1.00% with a 1.00% floor) plus an applicable margin rate of 0.50% for the first two fiscal quarters after the date of the Credit Agreement Amendment, and thereafter at an applicable margin rate ranging from 0.125% to 0.750% based on our consolidated net leverage ratio or (ii) Term SOFR rate (calculated as the Secured Overnight Financing Rate published on the applicable Reuters screen page plus a spread adjustment of 0.10%, 0.15% or 0.25% depending on if we select a one-month, three-month or six-month interest period, respectively, for the applicable loan with a 0% floor), plus an applicable margin rate of 1.50% for the first two full fiscal quarters after the date of the Credit Agreement Amendment, and thereafter at an applicable margin rate ranging from 1.125% to 1.750% based on our consolidated net leverage ratio. The Amended Credit Agreement also

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provides for other customary fees and charges, including an unused commitment fee with respect to the Revolving Credit Line ranging from 0.150% to 0.200% of the unused lending commitments under the Revolving Credit Line, based on our consolidated net leverage ratio.

The Amended Credit Agreement contains customary covenants and restrictions, including covenants that require us to maintain a minimum interest coverage ratio, a maximum consolidated net leverage ratio and to comply with laws, and restrictions on the ability to pay dividends, incur indebtedness or liens and make certain other distributions subject to baskets and exceptions, in each case, as specified therein. Failure to comply with these covenants would constitute an event of default under the Amended Credit Agreement, notwithstanding the ability of the Company to meet its debt service obligations. The Amended Credit Agreement includes various customary remedies for the lenders following an event of default, including the acceleration of repayment of outstanding amounts under the Amended Credit Agreement. In addition, we may increase the principal amount of the Revolving Credit Line or incur additional term loans under the Amended Credit Agreement in an aggregate principal amount such that on a pro forma basis after giving effect to such increase or additional term loans, we are in compliance with the financial covenants, subject to the satisfaction of specified conditions and additional caps in the event that the Amended Credit Agreement is secured.

At June 30, 2025, we had an outstanding principal balance on the Amended Credit Agreement of $206.3 million, composed of the Term A Loan. There was no balance outstanding under the Revolving Credit Line. We had $450.0 million available on the Revolving Credit Line at June 30, 2025.

At June 30, 2025, we had an outstanding principal balance of $400.0 million on the 2030 Notes. Our obligations under the 2030 Notes are guaranteed on an unsecured senior basis by the same subsidiaries and affiliated professional contractors that guarantee our Amended Credit Agreement. Interest on the 2030 Notes accrues at the rate of 5.375% per annum, or $21.5 million, and is payable semi-annually in arrears on February 15 and August 15, beginning on August 15, 2022.

The indenture under which the 2030 Notes are issued, among other things, limits our ability to (1) incur liens, (2) enter into sale and lease-back transactions and (3) merge or dispose of all or substantially all of our assets, in all cases, subject to a number of customary exceptions. Although we are not required to make mandatory redemption or sinking fund payments with respect to the 2030 Notes, upon the occurrence of a change in control, we may be required to repurchase the 2030 Notes at a purchase price equal to 101% of the aggregate principal amount of the 2030 Notes repurchased plus accrued and unpaid interest.

At June 30, 2025, we believe we were in compliance, in all material respects, with the financial covenants and other restrictions applicable to us under the Amended Credit Agreement and the 2030 Notes. We believe we will be in compliance with these covenants throughout 2025.

We maintain professional liability insurance policies with third-party insurers, subject to self-insured retention, exclusions and other restrictions. We self-insure our liabilities to pay self-insured retention amounts under our professional liability insurance coverage through a wholly owned captive insurance subsidiary. We record liabilities for self-insured amounts and claims incurred but not reported based on an actuarial valuation using historical loss information, claim emergence patterns and various actuarial assumptions. Our total liability related to professional liability risks at June 30, 2025 was $274.8 million, of which $30.6 million is classified as a current liability within accounts payable and accrued expenses in the Consolidated Balance Sheet. In addition, there is a corresponding insurance receivable of $23.8 million recorded as a component of other assets for certain professional liability claims that are covered by insurance policies.

We anticipate that funds generated from operations, together with our current cash on hand and funds available under our Amended Credit Agreement, will be sufficient to finance our working capital requirements, fund anticipated acquisitions and capital expenditures, fund expenses related to our transformational and restructuring activities, fund our share repurchase programs and meet our contractual obligations for at least the next 12 months from the date of issuance of this Quarterly Report on Form 10-Q.

**Caution Concerning Forward-Looking Statements**

Certain information included or incorporated by reference in this Quarterly Report may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements may include, but are not limited to, statements relating to our objectives, plans and strategies, future impacts of legal, regulatory, political and macroeconomic developments and all statements, other than statements of historical facts, that address activities, events or developments that we intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. These statements are often characterized by terminology such as "believe," "hope," "may," "anticipate," "should," "intend," "plan," "will," "expect," "estimate," "project," "positioned," "strategy" and similar expressions, and are based on assumptions and assessments made by our management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Any forward-looking statements in this Quarterly Report are made as of the date hereof, and we undertake no duty to update or revise any such statements, whether as a result of new information, future events or otherwise. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. Important factors that could cause actual results, developments and business decisions to differ materially from forward-looking statements are described in the 2024 Form 10-K, including the section entitled "Risk Factors."

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**Item 3. Quantitative and Qualitative Disclosures about Market Risk**

We are subject to market risk primarily from exposure to changes in interest rates based on our financing, investing and cash management activities. We intend to manage interest rate risk through the use of a combination of fixed rate and variable rate debt. We borrow under our Amended Credit Agreement at various interest rate options based on the Alternate Base Rate or SOFR rate depending on certain financial ratios. At June 30, 2025, we had an outstanding principal balance of $206.3 million on our Amended Credit Agreement under our Term A Loan. Considering the total outstanding balance, a 1% change in interest rates would result in an impact to income before taxes of approximately $2.1 million per year.

**Item 4. Controls and Procedures**

**Evaluation of Disclosure Controls and Procedures**

We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) that are designed to provide reasonable assurance that information required to be disclosed by the Company in reports it files or submits under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and (ii) accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

We carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2025.

**Changes in Internal Controls Over Financial Reporting**

No changes in our internal control over financial reporting occurred during the three months ended June 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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**PART II - OTHER INFORMATION**

**Item 1. Legal Proceedings** 

We expect that audits, inquiries and investigations from government authorities and agencies will occur in the ordinary course of business. Such audits, inquiries and investigations and their ultimate resolutions, individually or in the aggregate, could have a material adverse effect on our business, financial condition, results of operations, cash flows and the trading price of our securities.

In the ordinary course of our business, we become involved in pending and threatened legal actions and proceedings, most of which involve claims of medical malpractice related to medical services provided by our affiliated physicians. Our contracts with hospitals generally require us to indemnify them and their affiliates for losses resulting from the negligence of our affiliated physicians and other clinicians. We may also become subject to other lawsuits, including with payors or other counterparties that could involve large claims and significant defense costs. We believe, based upon a review of pending actions and proceedings, that the outcome of such legal actions and proceedings will not have a material adverse effect on our business, financial condition, results of operations, cash flows or the trading price of our securities. The outcome of such actions and proceedings, however, cannot be predicted with certainty and an unfavorable resolution of one or more of them could have a material adverse effect on our business, financial condition, results of operations, cash flows and the trading price of our securities.

Although we currently maintain liability insurance coverage intended to cover professional liability and certain other claims, we cannot ensure that our insurance coverage will be adequate to cover liabilities arising out of claims asserted against us in the future where the outcomes of such claims are unfavorable to us. With respect to professional liability risk, we self-insure a significant portion of this risk through our wholly owned captive insurance subsidiary. Liabilities in excess of our insurance coverage, including coverage for professional liability and certain other claims, could have a material adverse effect on our business, financial condition, results of operations, cash flows and the trading price of our securities.

**Item 1A. Risk Factors**

There have been no material changes to the risk factors previously disclosed in our 2024 Form 10-K.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds**

During the three months ended June 30, 2025, we withheld 14,631 shares of our common stock to satisfy minimum statutory withholding obligations in connection with the vesting of restricted stock.

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| | | | |
|:---|:---|:---|:---|
| **Period** | **Total Number<br>of Shares<br>Repurchased** <sup>(a)</sup> | **Average Price<br>Paid per Share** | **Total Number of<br>Shares Purchased<br>as part of<br>the Repurchase<br>Program** |
| April 1 – April 30, 2025 |  | $— | —<br> (a) |
| May 1 – May 31, 2025 | 7,225 (b) | 14.44 | —<br> (a) |
| June 1 – June 30, 2025 | 7,406 (b) | 14.15 | —<br> (a) |
| Total | 14631 | $14.29 | —<br> (a) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)We have two active repurchase programs. Our July 2013 program allows us to repurchase shares of our common stock up to an amount sufficient to offset the dilutive impact from the issuance of shares under our equity compensation programs. Our August 2018 repurchase program allows us to repurchase up to an additional $500.0 million of shares of our common stock, of which we repurchased $498.9 million as of June 30, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Shares withheld to satisfy minimum statutory withholding obligations of $0.2 million in connection with the vesting of restricted stock.

The amount and timing of any future repurchases will depend upon several factors, including general economic and market conditions and trading restrictions.

**Item 5. Other Information**

*Rule 10b5-1 Trading Plans*

During the three months ended June 30, 2025, none of the Company's directors or officers adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K).

*Appointment of Chief Investment and Strategy Officer*

Effective on August 1, 2025 (the "Effective Date"), the Company's Board of Directors (the "Board") appointed Mr. Don Gregory Neeb to serve as the Company's Chief Investment and Strategy Officer.

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Prior to his appointment, Mr. Neeb served as Managing Partner of Neeb Management LLC and Neeb Investments LLC, healthcare and real estate advisory and investment firms he founded in 2013 serving global institutional clients. From 2016 to 2018, Mr. Neeb served as President and Chief Investment Officer of Quality Care Properties, Inc. (formerly NYSE: QCP) prior to its sale to Welltower Inc. and ProMedica Health System. From 2008 to 2013, Mr. Neeb served as Chief Investment and Administrative Officer for Sunrise Senior Living, Inc. (formerly NYSE: SRZ) prior to its sale to Welltower Inc. and Kohlberg Kravis Roberts & Co. LP. From 1995 to 2007, Mr. Neeb served as Chief Investment Officer for The Mills Corporation (formerly NYSE: MLS), prior to its sale to Simon Property Group and Farallon Capital Management. From 1989 to 2004, Mr. Neeb worked as a Manager at Kenneth Leventhal & Company serving real estate and financial institution clients. Mr. Neeb earned a B.B.A. from the University of Michigan Ross School of Business.

In connection with his appointment as Chief Investment and Strategy Officer, on the Effective Date, Mr. Neeb, the Company and a wholly-owned subsidiary of the Company entered into an employment agreement (the "Employment Agreement"), which has an initial term of three years, subject to automatic annual renewals thereafter. Pursuant to the Employment Agreement, Mr. Neeb is to receive, among other items and subject to certain exceptions and conditions set forth therein, (i) an annual salary of $550,000; (ii) a one-time cash retention award of $1,000,000, payable within 30 days of the Effective Date and subject to pro-rata repayment in the event that Mr. Neeb voluntary resigns (other than for "Good Reason," as defined in the Employment Agreement) or is terminated by the Company for "Cause" (as defined in the Employment Agreement) during the three years following the Effective Date; (iii) an annual performance bonus, with a target opportunity equal to 125% of his annual base salary, with the amount payable based on performance metrics and a performance range to be set annually by the Compensation and Talent Committee of the Board; (iv) an equity transformation award (the "Equity Transformation Award") in the form of a performance share unit award with respect to 320,000 shares of the Company's common stock, which will vest, to the extent earned, on the three-year anniversary of the Effective Date and with the shares underlying the Equity Transformation Award being earned in one-third installments based on the Company achieving stock price hurdles equal to $16.94, $20.33 and $23.71 for at least 20 consecutive trading days before the third anniversary of the Effective Date; and (v) annual equity grants in each year during the Employment Period, with a target grant date fair value of no less than $2,762,500.

Under the terms of the Employment Agreement, Mr. Neeb is eligible for cash severance for a termination by the Company without "Cause" or by Mr. Neeb for "Good Reason" equal to two times Mr. Neeb's base salary, plus two times the greater of his average annual performance bonus and his target bonus, plus a pro rata bonus for the year of termination based on actual performance and the acceleration of Mr. Neeb's then-outstanding equity awards, with any performance-based awards subject to the achievement of the underlying performance goals. In the event of Mr. Neeb's termination by the Company without Cause or resignation due to Good Reason, in each case, within six months prior to or twelve months following a Change in Control, Mr. Neeb will receive a severance payment equal to two times his base salary plus two times the greater of his average annual performance bonus and his target bonus, plus a pro rata bonus for the year of termination based on actual performance and the acceleration of Mr. Neeb's then-outstanding equity awards, with any performance-based awards deemed achieved at the greater of target or actual performance through the date of the change in control. Mr. Neeb is also subject to customary non-competition, non-solicitation, non-disparagement and confidentiality provisions under the terms of the Employment Agreement.

The foregoing description of the Employment Agreement does not purport to be complete and is qualified in its entirety by reference to the Employment Agreement, a copy of which is filed as an exhibit to this Quarterly Report on Form 10-Q.

There are no arrangements or understandings between Mr. Neeb and any other person pursuant to which he was appointed as Chief Investment and Strategy Officer of the Company and no family relationships between Mr. Neeb and any director or executive officer of the Company. Since the beginning of the Company's last fiscal year, the Company has not engaged in any transactions, and there are no proposed transactions, or series of similar transactions, in which the Company was or is to be a participant and in which Mr. Neeb had a direct or indirect material interest in which the amount involved exceeds or exceeded $120,000.

------

**Item 6. Exhibits**

**Exhibit No. Description** 

---

| | |
|:---|:---|
| 10.1+<br>| [<u>Employment Agreement, dated as of August 1, 2025, by and between PMG Services, Inc. and Don Gregory Neeb.</u>](md-ex10_1.htm) |
| 31.1+ | [<u>Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</u>](md-ex31_1.htm)<br>|
| 31.2+ | [<u>Certification of Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</u>](md-ex31_2.htm)<br>|
| 32.1++ | [<u>Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</u>](md-ex32_1.htm)<br>|
| 101.1+ | Interactive Data File<br>|
| 101.INS+ | XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.<br>|
| 101.SCH+ | XBRL Schema Document.<br>|
| 101.CAL+ | XBRL Calculation Linkbase Document.<br>|
| 101.DEF+ | XBRL Definition Linkbase Document.<br>|
| 101.LAB+ | XBRL Label Linkbase Document.<br>|
| 101.PRE+ | XBRL Presentation Linkbase Document.<br>|
| 104+ | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).<br>|

---

+ Filed herewith.

++ Furnished herewith.

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | |
|:---|:---|
|  | **Pediatrix Medical Group, Inc**. |
| Date: August 5, 2025 | By: <u>/s/ Mark S. Ordan</u>  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Mark S. Ordan |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Chief Executive Officer |
|  | &nbsp;&nbsp;&nbsp;&nbsp;(Principal Executive Officer) |
| Date: August 5, 2025 | By: <u>/s/ Kasandra H. Rossi</u>  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Kasandra H. Rossi |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Chief Financial Officer |
|  | &nbsp;&nbsp;&nbsp;&nbsp;(Principal Financial Officer and <br>&nbsp;&nbsp;&nbsp;&nbsp;Principal Accounting Officer) |

---

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## Exhibit 10.1

Exhibit 10.1

**EMPLOYMENT AGREEMENT**

**THIS EMPLOYMENT AGREEMENT** (this "<u>Agreement</u>") is made and entered into by and between **PMG SERVICES, INC.**, a Florida corporation ("<u>Employer</u>"), and **DON GREGORY NEEB** ("<u>Employee</u>") on August 1, 2025 (the "<u>Effective Date</u>").

**RECITALS**

**WHEREAS**, Employer is presently engaged in "Employer's Business" as defined on <u>Exhibit A</u> hereto; and

**WHEREAS**, Employer desires to employ Employee and benefit from Employee's contributions to Employer.

**NOW, THEREFORE**, in consideration of the mutual covenants and premises set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Employer and Employee hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Employment.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 *Employment and Term*. Employer hereby agrees to employ Employee and Employee hereby agrees to serve Employer on the terms and conditions set forth herein for an "<u>Initial Term</u>" commencing as of the Effective Date and continuing for a period of three (3) years, unless sooner terminated as hereinafter set forth. Thereafter, the employment of Employee hereunder shall automatically renew for successive one (1) year periods (each a "Renewal Term") until terminated in accordance herewith, unless either party has given ninety (90) days' prior written notice to the other party of the intention not to extend Employee's employment for the applicable Renewal Term. The Initial Term and each Renewal Term shall be collectively referred to as the "<u>Employment Period</u>".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 *Duties of Employee*. As of the Effective Date and thereafter during the remaining Employment Period, Employee shall serve as Chief Investment and Strategy Officer of Employer and Pediatrix Medical Group, Inc., a Florida corporation and the parent corporation of Employer ("<u>Pediatrix</u>"), and perform such duties as are customary to the position Employee holds or as may be assigned to Employee from time to time by the Chief Executive Officer of Pediatrix ("<u>Employee's Supervisor</u>") or the Board of Directors of Pediatrix (the "<u>Board</u>"), including, but not limited to, also serving as an officer and/or director, or equivalent, of subsidiaries and/or affiliates of Pediatrix; *provided,* that such duties as assigned shall be customary to Employee's role as an executive officer of Employer and Pediatrix. Employee's employment shall be full-time and, as such, Employee agrees to devote substantially all of Employee's attention and professional time to the business and affairs of Employer and Pediatrix. Employee shall perform Employee's duties honestly, diligently, competently, in good faith and in the best interest of Employer and Pediatrix. During the Employment Period, Employee agrees that Employee will not, without the prior written consent of Employer (which consent shall not be unreasonably withheld), serve as a director on a corporate board of directors or in any other similar capacity for any institution other than Employer and Pediatrix, and their respective subsidiaries and affiliates in accordance with this <u>Section 1.2</u>. Employer agrees that Employee's serving on the board of directors of the entity disclosed to Employer on or prior to the Effective Date has been consented to by Employer and such service

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shall not constitute Employee's breach of this Agreement. During the Employment Period, it shall not be a violation of this Agreement to (i) serve on civic or charitable boards or committees, (ii) manage personal investments, or (iii) deliver lectures, fulfill speaking engagements or teach at educational institutions, so long as such activities have been approved by Employee's Supervisor and do not violate any code of conduct or personnel policies and procedures of Employer or Pediatrix and do not, individually or in the aggregate, interfere with the performance of Employee's responsibilities as an employee of Employer in accordance with this Agreement, including the restrictions of <u>Section 8</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 *Place of Performance*. Employee's principal work location shall be Pediatrix's corporate headquarters in Florida, subject to the Employer's remote work policy as in effect from time to time and subject to travel reasonably required in the performance of Employee's duties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Base Salary and Performance Bonus.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 *Base Salary*. Employer shall pay Employee during the Employment Period an annualized salary of Five Hundred and Fifty Thousand Dollars ($550,000) (the "<u>Base Salary</u>"), payable in accordance with Employer's normal business practices for senior executives (including tax withholding), but in no event less frequently than monthly. Employee's Base Salary shall be reviewed at least annually by the Compensation and Talent Committee of the Board (the "<u>Compensation and Talent Committee</u>") when the Compensation and Talent Committee reviews the compensation for the other executive officers of Employer and Pediatrix and may be increased, but not decreased, in its discretion. After any such increase in Base Salary, the term "<u>Base Salary</u>" shall refer to the increased amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 *Performance Bonus*. Employee shall be eligible to earn a cash bonus (the "<u>Performance Bonus</u>") for each year during the Employment Period commencing with 2025, provided that, except as otherwise provided herein, Employee has remained employed by Employer as of the end of the applicable year and that the Performance Bonus for 2025 shall be prorated based on the number of days Employee is employed by Employer during 2025. Employee's target bonus opportunity for any particular year ("<u>Target Bonus</u>") shall be one hundred and twenty-five percent (125%) of Base Salary. The amount of bonus payable to Employee for any particular year will be determined by the Compensation and Talent Committee based upon the achievement of reasonable performance objectives established by the Compensation and Talent Committee. All such bonuses, if earned, shall be paid no later than March 15th of the calendar year immediately following the calendar year in which it is earned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 *Initial Awards.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)*Retention Award*. On the Effective Date, Employee shall be granted a cash award in the amount of One Million Dollars ($1,000,000) (the "<u>Retention Award</u>"), which will be paid to Employee in a lump sum within thirty (30) days following the Effective Date; provided, that Employee shall be required to repay, on a pro-rated basis, the Retention Award to Employer, less income taxes paid with respect to the Retention Award, in the event that Employee's employment is terminated for Cause by Employer or if Employee voluntarily resigns other than for Good Reason, in each case, on or prior to the three-year anniversary of the Effective

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Date, with the amount subject to repayment equal to (i) 100% in the event of such termination on or prior to the one-year anniversary of the Effective Date, (ii) 66.67% in the event of such termination following the one-year anniversary of the Effective Date and on or prior to the two-year anniversary of the Effective Date, and (iii) 33.33% in the event of such termination following the two-year anniversary of the Effective Date and on or prior to the three-year anniversary of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*Equity Transformation Award*. On the Effective Date, Pediatrix shall grant to Employee a performance share unit award under Pediatrix's Amended and Restated 2008 Incentive Compensation Plan, as amended (the "<u>2008 Plan</u>") with respect to 320,000 shares of Pediatrix common stock ("<u>Pediatrix Common Stock</u>," and such award, the "<u>Equity Transformation Award</u>"). The Equity Transformation Award shall be earned with respect to (i) one-third of the shares of Pediatrix Common Stock subject to the award on the Effective Date upon the attainment of the First Stock Price Hurdle (as defined below), (ii) one-third of the number of shares of Pediatrix Common Stock subject to the award on the Effective Date upon the attainment of the Second Stock Price Hurdle (as defined below), and (iii) one-third of the number of shares of Pediatrix Common Stock subject to the award on the Effective Date upon the attainment of the Third Stock Price Hurdle (as defined below), and which shall vest, to the extent earned, on the three-year anniversary of the Effective Date, subject to Employee's continued employment with Employer through such date (except as otherwise provided by Section 4 of this Agreement). For purposes of the Equity Transformation Award, the "First Stock Price Hurdle," "Second Stock Price Hurdle" and "Third Stock Price Hurdle" shall be attained upon the closing price of a share of Pediatrix Common Stock equaling or exceeding $16.94, $20.33 and $23.71, respectively, for twenty (20) consecutive trading days on the primary national securities exchange on which such Pediatrix Common Stock is listed for trading. For the avoidance of doubt, in the event the applicable Stock Price Hurdle is not achieved on or before the three-year anniversary of the Effective Date, then the portion of the Equity Transformation Award attributed to such Stock Price Hurdle shall be forfeited for no consideration. Notwithstanding anything in this Agreement to the contrary, in the event of a Change in Control (as defined in the 2008 Plan), the Stock Price Hurdles shall be deemed earned to the extent the applicable Stock Price Hurdles have been achieved either (i) as of (including prior to) the consummation of such Change in Control using the measurement methodology specified above or (ii) based on the Change in Control Price, and thereafter the Equity Transformation Award shall convert to a time-based award that shall vest on the three-year anniversary of the Effective Date, subject to Employee's continued employment with Employer through such date (except as otherwise provided by Section 4 of this Agreement). The Transformation Award shall also be subject to the terms and conditions of the 2008 Plan and an award agreement, provided that such award agreement shall not be inconsistent with the terms of this Agreement and shall be in a form reasonably acceptable to Employee. For the purposes of this paragraph, "<u>Change in Control Price</u>" shall mean the value of the consideration per share of Pediatrix Common Stock received by holders of Pediatrix Common Stock in the Change in Control transaction, with the value of any non-cash consideration determined prior to the Change in Control by the Compensation and Talent Committee in its discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Benefits.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 *Expense Reimbursement*. Employer shall promptly reimburse Employee for all out-of-pocket expenses reasonably incurred by Employee during the Employment Period

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on behalf of or in connection with Employer's Business pursuant to the reimbursement standards and guidelines of Employer in effect from time to time, and no less favorable than provided for other senior executive officers of Employer or Pediatrix , including reimbursement for appropriate professional organizations. Employee shall account for such expenses and submit reasonable supporting documentation in accordance with Employer's policies in effect from time to time. Employee shall be permitted to travel first-class for all business air travel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 *Employee Benefits*. During the Employment Period, Employee shall be entitled to participate in such health, welfare, disability, retirement savings and other fringe benefit plans and programs (subject to the terms and conditions of such plans and programs) as may be provided from time to time to employees of Employer and to the extent that such plans and programs are applicable to other similarly situated employees of Employer. Notwithstanding the foregoing, Employee may choose to waive participation in Employer's health and welfare plans pursuant to the standard waiver provisions thereof and remain on Employee's existing health and welfare plans, in which case Employee shall be reimbursed a monthly amount equal to the cost of such Employee health and welfare plans, up to the amount of Employer's monthly COBRA rate, subject to applicable taxes and withholdings and subject to Employee's continued employment on each monthly reimbursement date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 *Leave Time*. During the Employment Period, Employee shall be entitled to paid vacation and leave days each calendar year in accordance with the leave policies established by Employer from time to time. Any leave time not used during each fiscal year of Employer may be carried over into the next year to the extent permitted by Employer policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 *Equity Plans.* During the Employment Period, the Compensation and Talent Committee shall grant to the Employee on an annual basis following the Effective Date, and at the same time as other executive officers of Employer, awards (each an "<u>Equity Award</u>") pursuant to the 2008 Plan or any other similar plan adopted by Pediatrix (together with the 2008 Plan, each an "<u>Equity Plan</u>"), with a target grant date fair value determined by the Compensation and Talent Committee in the same manner as for other executive officers of Employer, but in no event less than Two Million Seven Hundred and Sixty-Two Thousand and Five Hundred Dollars ($2,762,500); provided, however, on the Effective Date, Employee shall receive pro-rated annual equity grants for the 2025 calendar year in the form of a restricted stock award with respect to 81,346 shares and a performance share award with respect to 81,346 shares, with such grants to vest in accordance with the vesting schedules and vesting commencement dates applicable to the 2025 grants awarded to the Company's other executive officers, subject to the achievement of the performance measures applicable to the 2025 performance share awards granted to the Company's other executive officers with respect to the performance share award. Each Equity Award made to Employee shall be subject to the terms and conditions of this Agreement and the terms of the applicable Equity Plan and shall be made subject to an award agreement that is consistent with terms applicable to other executive officers of Employer. In the event of a Change in Control, all performance conditions applicable to all performance-based share awards then outstanding and held by Employee (other than the Transformation Award) shall be deemed achieved based on the greater of (x) the target level of performance, if applicable, and (y) the actual level of achievement of the applicable performance goals as determined by the Compensation and Talent Committee prior to the Change in Control.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Termination; Compensation and Benefits Upon Termination.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 *Termination for Cause*. Employer may terminate Employee's employment under this Agreement for Cause (as defined below). Employee shall be provided written notice of any action or inaction alleged to constitute Cause and not less than thirty (30) days to cure, to the extent curable. The termination date for a termination of Employee's employment under this Agreement pursuant to this <u>Section 4.1</u> shall be the date specified by Employer in a written notice to Employee of finding of Cause. If Employee's employment is terminated for Cause, Employer shall pay (i) Employee's Base Salary through the termination date at the rate in effect at the termination date, (ii) reimbursement for reasonable business expenses properly incurred prior to the termination date, subject to Employer policy and the provisions of <u>Section 3.1</u> hereof, and (iii) vacation payout and any other vested benefits, subject, in each case, to applicable Employer benefit plans or applicable law (the foregoing clauses (i)-(iii), the "<u>Accrued Obligations</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 *Disability*. Employer may terminate Employee's employment under this Agreement upon the Disability (as defined below) of Employee. The termination date for a termination of this Agreement pursuant to this <u>Section 4.2</u> shall be the date specified by Employer in a notice to Employee. In the event of Employee's Disability, (i) Employee shall continue to receive the Base Salary for ninety (90) days (the "<u>Initial Disability Period</u>") under the Employer's short term disability policy, which may be amended or modified in the Employer's discretion upon written notice to Employee, and (ii) following such Initial Disability Period, if Employee's Disability continues, the Employer may terminate Employee's employment immediately upon written notice. If Employee's employment is terminated in connection with Employee's Disability, in addition to the Accrued Obligations and subject to and conditioned on Employee's compliance with the terms of <u>Section 5</u> hereof, Employee shall be eligible to receive (A) a bonus with respect to Employer's fiscal year in which the termination date occurs, determined based on actual performance, multiplied by the number of days in the fiscal year prior to and including the date of termination and divided by three hundred sixty five (365) (a "<u>Pro-Rated Bonus</u>"), which shall be paid in the calendar year immediately following the calendar year in which it is earned, as soon as practicable after the audited financial statements for Employer for the year for which the bonus is earned have been released, but in no event later than March 15th following the year for which the Performance Bonus is earned; and (B) all time-based Equity Awards granted to Employee by Pediatrix prior to termination of Employee's employment shall immediately become fully vested, non-forfeitable and, if applicable, exercisable, and all performance-based shares awards, if any, including without limitation the Transformation Award, shall remain outstanding and shall vest based upon actual performance determined at the end of the applicable performance period (the "<u>Equity Acceleration</u>"). Any shares delivered pursuant to the Equity Acceleration shall be delivered to Employee within sixty (60) days following such termination of employment, subject to any delay required to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the "<u>Code</u>") or as otherwise required by the underlying award agreement. Employee shall also receive any earned and unpaid Performance Bonus with respect to the year prior to the year of termination, which shall be paid in accordance with <u>Section 2.2</u> without regard to its continued employment requirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 *Death*. Employee's employment under this Agreement shall terminate automatically upon the death of Employee, without any requirement of notice by Employer to Employee's estate. The date of Employee's death shall be the termination date for a termination

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of Employee's employment under this Agreement pursuant to this <u>Section 4.3</u>. Upon Employee's death during the Employment Period, Employer shall pay or provide to the person or entity designated by Employee in a notice filed with Employer or, if no person is designated, to Employee's estate (i) the Accrued Obligations; (ii) a Pro-Rated Bonus; and (iii) the Equity Acceleration. Any shares delivered pursuant to the Equity Acceleration shall be delivered to Employee within sixty (60) days following such termination of employment, subject to any delay required to comply with Section 409A of the Code or as otherwise required by the underlying award agreement. Employee shall also receive any earned and unpaid Performance Bonus with respect to the year prior to the year of termination, which shall be paid in accordance with <u>Section 2.2</u> without regard to its continued employment requirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 *Termination by Employer Without Cause*. Employer may terminate Employee's employment under this Agreement without Cause by giving Employee written notice of such termination. The termination date shall be the date specified by Employer in such notice, which may be up to ninety (90) days from the date of such notice. The non-renewal of this Agreement pursuant to <u>Section 1.1</u> shall be considered a termination of Employee's employment by Employer without Cause. Upon any termination of Employee's employment without Cause pursuant to this <u>Section 4.4</u> that is not a termination following a Change in Control that is covered by <u>Section 4.7</u>, in addition to the Accrued Obligations and subject to and conditioned on Employee's compliance with the terms of <u>Section 5</u> hereof, Employee shall be eligible to receive: (i) a Pro-Rated Bonus; (ii) any earned and unpaid Performance Bonus with respect to the year prior to the year of termination, which shall be paid in accordance with <u>Section 2.2</u> without regard to its continued employment requirement; (iii) within sixty (60) days of the termination date, Employer shall pay Employee a lump sum payment equal to the product of (A) two and (B) Employee's Base Salary; (iv) within sixty (60) days of the termination date, Employer shall pay Employee a lump sum payment equal to the product of (A) two and (B) the greater of (x) Employee's Average Annual Performance Bonus (as defined below) or (y) Employee's Target Bonus; and (v) the Equity Acceleration, with any shares delivered pursuant to the Equity Acceleration to be delivered to Employee within sixty (60) days following such termination of employment, subject to any delay required to comply with Section 409A of the Code or as otherwise required by the underlying award agreement;.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 *Termination by Employee without Good Reason*. Employee may terminate Employee's employment under this Agreement without Good Reason (as defined below) upon not less than ninety (90) days prior written notice to Employer. Upon receipt of such notice from Employee, Employer may, at its option, accelerate the effective date of Employee's termination of employment at any time in advance of the expiration of such ninety (90) day period (which acceleration shall not constitute Good Reason or a termination by Employer without Cause). The termination date under this <u>Section 4.5</u> shall be the date specified by Employer, but in no event more than ninety (90) days after Employer's receipt of notice from Employee as contemplated by this <u>Section 4.5</u>. Upon any termination of Employee's employment under this Agreement pursuant to this <u>Section 4.5</u>, Employee shall be entitled to the Accrued Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 *Termination by Employee for Good Reason.* Employee may terminate Employee's employment hereunder for Good Reason. If Employee desires to terminate Employee's employment under this Agreement pursuant to this <u>Section 4.6</u>, Employee must, within one hundred eighty (180) days after the occurrence of events giving rise to the Good

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Reason, provide Employer with a written notice describing the Good Reason in reasonable detail. If Employer fails to cure the matter cited within thirty (30) days after the date of Employee's notice, then this Agreement shall terminate as of the end of such thirty (30) day cure period, provided, however, that Employer may, at its option, require Employee to terminate employment at any time in advance of the expiration of such thirty (30) day cure period. If Employee's employment under this Agreement is terminated pursuant to this <u>Section 4.6</u> and such termination is not a termination following a Change in Control that is covered by <u>Section 4.7</u>, then Employee shall be eligible to receive the same payments and benefits, subject to the same conditions, for a termination without Cause as set forth in <u>Section 4.4</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 *Termination in Connection with a Change in Control*. If Employee's employment under this Agreement is terminated by Employer without Cause or by Employee for Good Reason, in each case, within six (6) months prior to or twelve (12) months following a Change in Control, then, in addition to the Accrued Obligations, Employee shall be eligible to receive: (i) a Pro-Rated Bonus; (ii) Employee shall also receive any earned and unpaid Performance Bonus with respect to the year prior to the year of termination, which shall be paid in accordance with <u>Section 2.2</u> without regard to its continued employment requirement; (iii) within sixty (60) days of the termination date, Employer shall pay Employee a lump sum payment equal to the product of (A) two and (B) Employee's Base Salary; (iv) within sixty (60) days of the termination date, Employer shall pay Employee an amount equal to the product of (A) two and (B) the greater of (x) Employee's Average Annual Performance Bonus or (y) Employee's Target Bonus; and (v) the Equity Acceleration, with any shares delivered pursuant to the Equity Acceleration to be delivered to Employee within sixty (60) days following such termination of employment, subject to any delay required to comply with Section 409A of the Code or as otherwise required by the underlying award agreement. For the avoidance of doubt, and any reductions in Base Salary or Target Bonus opportunity resulting in Good Reason shall be disregarded in calculating severance under this <u>Section 4.7</u>. Further, in the event of a termination within six (6) months prior to a Change in Control under this Section 4.7, any amounts due under this Section 4.7 shall be reduced by the amounts previously paid under Section 4.4 or Section 4.5, as applicable, and the additional amounts due under clauses (iii) and (iv) of this Section 4.7 in the event of a termination within six (6) months prior to a Change in Control shall be paid within sixty (60) days following the consummation of the Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 *Continuation of Benefit Plans*. Following any termination that results in the expiration of Employee's continued benefit plan coverage, Employee and each of Employee's eligible dependents shall be entitled to elect for continuation of coverage provided pursuant to COBRA. In addition, upon Employee's termination of employment by the Employer without Cause, or resignation by Employee with Good Reason, in each case, subject to applicable law and the limitations imposed by Employer's stop-loss insurance policy, Employee and his eligible dependents will be entitled to elect, for a period of two years following the date of Employee's termination of employment, to continue to participate in any self-insured group health plan sponsored by Employer for its employees on the same basis as regular, full-time employees of Employer and their eligible dependents. Employee will pay the full cost of such continued group health coverage, which is understood to be the Employer's monthly COBRA rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 *Continuing Obligations*. The obligations imposed on Employee with respect to non-competition, non-solicitation, confidentiality, non-disclosure and assignment of

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rights to inventions or developments in this Agreement or any other agreement executed by the parties shall continue, notwithstanding the termination of the employment relationship between the parties and regardless of the reason for such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Conditions to Severance; Certain Definitions.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 *Release.* Employer shall provide Employee with a general release in the form attached as <u>Exhibit B</u> (subject to such modifications as Employer may reasonably request) (the "<u>Release</u>") within seven (7) days after Employee's termination date. Payments or benefits to which Employee may be entitled pursuant to <u>Section 4</u> hereof (other than the Accrued Obligations and Employee's right to elect for continuation of coverage provided pursuant to COBRA) (the "<u>Severance Amounts</u>") shall be conditioned upon (i) Employee executing the Release within twenty one (21) days after receiving it from Employer (or such longer period as may be set forth in the Release not to exceed forty-five (45) days) and the Release becoming irrevocable upon the expiration of seven (7) days following Employee's execution of it, (ii) Employee agreeing to submit to a reasonable exit interview if requested by Employer, and (iii) Employee's compliance with all post-termination obligations to Employer and its subsidiaries and affiliates and surrendering to Employer all proprietary or confidential information and articles belonging to Employer or its subsidiaries or affiliates. Payment of the Severance Amounts shall be suspended during the period (the "<u>Suspension Period</u>") that begins on Employee's termination date and ends on the date ("<u>Suspension Termination Date</u>") that is at least forty-five (45) days after Employee's termination date; provided, however, that this suspension shall not apply, and Employer shall be required to provide, any continued health insurance coverage (or COBRA reimbursement) that would be required under <u>Section 4</u> hereof during the Suspension Period. If Employee executes the Release and the Release becomes irrevocable by no later than the Suspension Termination Date, then payment of any Severance Amounts that were suspended pursuant to this provision shall be made in the first payroll period that follows the Suspension Termination Date, and any Severance Amounts that are payable after the Suspension Termination Date shall be paid at the times provided in <u>Section 4</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)*Certain Definitions*. As used in this Agreement: "<u>Average Annual Performance Bonus</u>" shall mean an amount equal to the average of the percentage of Employee's Target Bonus achieved for the three (3) full calendar years prior to the termination date (or such lesser period as Employee may have been employed by Employer), and calculated based on Employee's Base Salary and Target Bonus in Employee's current position. *For illustration purposes, if Employee earned 40%, 100% and 70% of Employee's Target Bonus in each of the three full calendar years prior to termination, and Employee's current Target Bonus was 100% of Base Salary, and Base Salary was $1,000,000.00, then Employee's Average Annual Performance Bonus would equal $315,000.00. ((40%+ 100% + 70%) / 3 x 100% x $1,000,000.00 = $700,000.00).*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)"<u>Cause</u>" shall mean the occurrence of any of: (i) Employee's engagement in (A) willful misconduct resulting in material harm to Pediatrix or Employer, or (B) gross negligence resulting in material harm to Pediatrix or Employer; (ii) Employee's conviction of, or pleading nolo contendere to, a felony or any other crime involving fraud, financial misconduct, or misappropriation of Employer's assets; (iii) Employee's willful and continual failure, after written notice from Employee's Supervisor or the Board to (A) perform substantially

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Employee's employment duties consistent with Employee's position and authority, or (B) follow, consistent with Employee's position, duties, and authorities, the reasonable lawful mandates of Employee's Supervisor or the Board; (iv) Employee's failure or refusal to comply with a reasonable policy, standard or regulation of Employer in any material respect, including but not limited to Employer's sexual harassment, other unlawful harassment, workplace discrimination or substance abuse policies; or (v) Employee's breach of <u>Section 8.4</u> hereof resulting in material harm to Pediatrix or Employer. No act or omission shall be deemed willful or grossly negligent for purposes of this definition if taken or omitted to be taken by Employee in a good faith belief that such act or omission to act was in the best interests of Employer or Pediatrix or if done at the express direction of the Board or upon the advice of counsel to Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Subject to the requirements of applicable law, "<u>Disability</u>" shall mean (i) Employee's inability to perform Employee's duties hereunder, with or without a reasonable accommodation, as a result of physical or mental illness or injury, and (ii) a determination by an independent qualified physician selected by Employer and acceptable to Employee (which acceptance shall not be unreasonably withheld) that Employee is currently unable to perform such duties and in all reasonable likelihood such inability will continue for a period in excess of an additional one hundred eighty (180) days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)"<u>Good Reason</u>" shall mean: (i) a decrease in Employee's Base Salary; (ii) a decrease in Employee's Target Bonus opportunity or a failure of the Compensation and Talent Committee to approve an equity grant pursuant to <u>Section 3.4</u> hereof; (iii) Employee is assigned any position, duties, responsibilities or compensation that is materially inconsistent with the position, duties, or responsibilities of Employee contemplated herein as of the Effective Date, excluding for this purpose any isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by Employer promptly after receipt of written notice; (iv) Employee experiences a material diminution in Employee's authorities, duties or responsibilities, excluding for this purpose any isolated and inadvertent action not taken in bad faith and which is remedied by Employer promptly after receipt of written notice, provided that, if following a Change in Control, (A) neither the Pediatrix Common Stock nor the common equity of its successor is listed for trading on a national securities exchange, (B) the successor company in such Change in Control does not have a similar credit profile to that of the Company immediately prior to the occurrent of such Change in Control (as determined by the Board in its reasonable discretion), or (C) if Employee is not Chief Investment and Strategy Officer (or similar title), Employee shall have Good Reason to terminate employment; (v) Employee is required to report to any person other than the Chief Executive Officer; (vi) the requirement by Employer that Employee be based in any office or location outside of the metropolitan area where Pediatrix's headquarters are located as of the Effective Date, except for travel reasonably required in the performance of Employee's duties; or (vii) any other action or inaction that constitutes a material breach of this Agreement by Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Successors; Binding Agreement.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 *Successors*. Employer shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) acquiring a majority of Employer's voting common stock or any other successor to all or substantially all of the business and/or assets of Employer to expressly assume and agree to perform this Agreement in the same manner and to

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the same extent that Employer would be required to perform it if no such succession had taken place and Employee hereby consents to any such assignment. In such event, "<u>Employer</u>" shall mean Employer as previously defined and any successor to its business and/or assets which executes and delivers the agreement provided for in this <u>Section 6</u> or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of law. This <u>Section 6.1</u> shall not limit Employee's ability to terminate this Agreement in the circumstances described in Section 4.6 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 *Benefit*. This Agreement and all rights of Employee under this Agreement shall inure to the benefit of and be enforceable by Employee's personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If Employee should die after the termination date and amounts would have been payable to Employee under this Agreement if Employee had continued to live, including under <u>Section 5</u> hereof, then such amounts shall be paid to Employee's devisee, legatee, or other designee or, if there is no such designee, Employee's estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Conflicts**. Except as otherwise provided in this Agreement, this Agreement constitutes the entire agreement among the parties pertaining to the subject matter hereof, and supersedes and revokes any and all prior or existing agreements, written or oral, relating to the subject matter hereof, and this Agreement shall be solely determinative of the subject matter hereof. Any conflict between this Agreement and any plan document or award agreement or policy shall be resolved in favor of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.** **Restrictive Covenants; Confidential Information; Work Product; Injunctive Relief.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 *No Material Competition*. Employer and Employee acknowledge and agree that a strong relationship and connection exists between Employer and its current and prospective patients, referral sources, and customers as well as the hospitals and healthcare facilities at which it provides professional services. Employer and Employee further acknowledge and agree that the restrictive covenants described in this Section are designed to enforce, and are ancillary to or part of, the promises contained in this Agreement and are reasonably necessary to protect the legitimate interests of Employer in the following: (1) the use and disclosure of the Confidential Information as described in <u>Section 8.4</u> hereof; (2) the professional development activities described in <u>Section 1.2</u> hereof; and (3) the goodwill of Employer, as promoted by Employee as provided in <u>Section 1.2</u> hereof. The foregoing listing is by way of example only and shall not be construed to be an exclusive or exhaustive list of such interests. Employee acknowledges that the restrictive covenants set forth below are of significant value to Employer and were a material inducement to Employer in agreeing to the terms of this Agreement. Employee further acknowledges that the goodwill and other proprietary interest of Employer will suffer irreparable and continuing damage in the event Employee enters into competition with Employer in violation of this Section.

Therefore, Employee agrees that, except with respect to services performed under this Agreement on behalf of Employer, **Employee shall not**, at any time during the Restricted Period (as defined below), for Employee or on behalf of any other person, persons, firm, partnership, corporation or employer, intentionally, knowingly, or willingly participate or engage in or own an interest in, directly or indirectly, any individual proprietorship, partnership,

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corporation, joint venture, trust or other form of business entity, whether as an individual proprietor, partner, joint venturer, officer, director, member, employee, consultant, independent contractor, stockholder, or lender, if such entity is engaged in, directly or indirectly, "<u>Employer's Business</u>," as defined on <u>Exhibit A</u> hereto. Employee acknowledges that, as of the date hereof, Employee's responsibilities will include matters affecting the businesses of Employer listed on <u>Exhibit A</u>. Notwithstanding the foregoing and except as otherwise set forth on <u>Exhibit A</u>, Employee shall not violate this <u>Section 8.1</u> by providing services to an entity which has a unit, division, subsidiary, or affiliate engaged in the Employer's Business so long as Employee does not directly or indirectly provide services to such unit, division, subsidiary, or affiliate. For purposes of this <u>Section 8</u>, the "<u>Restricted Period</u>" shall mean the Employment Period plus (i) eighteen (18) months in the event this Agreement is terminated pursuant to <u>Section 4.1</u> hereof, and (ii) twenty-four (24) months in the event the Agreement is terminated for any other reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 *No Hire*. Employee further agrees that **Employee shall not**, at any time during the Employment Period (other than on behalf of Employer or its affiliates) and for a period of eighteen (18) months immediately following termination of this Agreement for any reason, for Employee or on behalf of any other person, persons, firm, partnership, corporation or employer, intentionally, knowingly, or willingly employ, or intentionally, knowingly, or willingly permit any company or business directly or indirectly controlled by Employee to (a) employ or otherwise hire (i) any person who is a then current employee or exclusive independent contractor of Employer or one of its affiliates, or (ii) any person who was an employee or exclusive independent contractor of Employer or one of its affiliates in the prior six (6) month period, or (b) take any action that would reasonably be expected to induce an employee or independent contractor of Employer or one of its affiliates to leave his or her employment or engagement with Employer or one of its affiliates (including without limitation for or on behalf of a subsequent employer of Employee). Employee shall not violate this <u>Section 8.2</u> by (x) soliciting employees or consultants through a general advertisement not directed specifically at employees or exclusive independent contractors of Employer or one of its affiliates or (y) providing a personal reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 *Non-Solicitation.* Employee further agrees that **Employee shall not**, at any time during the Employment Period (other than on behalf of Employer or its affiliates) and for a period of eighteen (18) months immediately following termination of this Agreement for any reason, for Employee or on behalf of any other person, persons, firm, partnership, corporation or employer, intentionally, knowingly, or willingly solicit or accept business from (but solely in competition with Employer's Business) or take any action that would reasonably be expected to materially interfere with, diminish or impair the valuable relationships that Employer or its affiliates have with (i) hospitals or other health care facilities with which Employer or its affiliates have contracts to render professional services or otherwise have established relationships, (ii) patients, (iii) referral sources, (iv) vendors, (v) any other clients of Employer or its affiliates, or (vi) prospective hospitals, patients, referral sources, vendors or clients whose business Employee was aware that Employer or any affiliate of Employer was in the process of soliciting at the time of Employee's termination (including potential acquisition targets).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 *Confidential Information*. At all times during the term of this Agreement, Employer shall provide Employee with access to "<u>Confidential Information</u>." As used in this Agreement, the term "<u>Confidential Information</u>" means any and all confidential, proprietary or trade secret information, whether disclosed, directly or indirectly, verbally, in writing or by any

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other means in tangible or intangible form, including that which is conceived or developed by Employee, applicable to or in any way related to: (i) patients with whom Employer has a physician/patient relationship; (ii) the present or future business of Employer; or (iii) the research and development of Employer. Without limiting the generality of the foregoing, Confidential Information includes: (a) the development and operation of Employer's medical practices, including information relating to budgeting, staffing needs, marketing, research, hospital relationships, equipment capabilities, and other information concerning such facilities and operations and specifically including the procedures and business plans developed by Employer for use at the hospitals where Employer conducts its business; (b) contractual arrangements between Employer and insurers or managed care associations or other payors; (c) the databases of Employer; (d) the clinical and research protocols of Employer, including coding guidelines; (e) the referral sources of Employer; or (f) other confidential information of Employer that is not generally known to the public that gives Employer the opportunity to obtain an advantage over competitors who do not know or use it, including the names, addresses, telephone numbers or special needs of any of its patients, its patient lists, its marketing methods and related data, lists or other written records used in Employer's business, compensation paid to employees and other terms of employment, accounting ledgers and financial statements, contracts and licenses, business systems, business plan and projections, and computer programs. The parties agree that, as between them, this Confidential Information constitutes important, material, and confidential trade secrets that affect the successful conduct of Employer's business and its goodwill. Employer acknowledges that the Confidential Information specifically enumerated above is special and unique information and is not information that would be considered a part of the general knowledge and skill Employee has or might otherwise obtain.

Notwithstanding the foregoing, Confidential Information shall not include any information that (i) was known by Employee from a third party source before disclosure by or on behalf of Employer, (ii) becomes available to Employee from a source other than Employer that is not, to Employee's knowledge, bound by a duty of confidentiality to Employer, (iii) becomes generally available or known in the industry other than as a result of its disclosure by Employee, or (iv) has been independently developed by Employee and may be disclosed by Employee without breach of this Agreement, provided, in each case, that Employee shall bear the burden of demonstrating that the information falls under one of the above-described exceptions. Pursuant to the Defend Trade Secrets Act of 2016, Employee acknowledges that Employee shall not have criminal or civil liability under any federal or state trade secret law for the disclosure of a trade secret that (A) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. In addition, if Employee files a lawsuit for retaliation by Employer for reporting a suspected violation of law, Employee may disclose the trade secret to Employee's attorney and may use the trade secret information in the court proceeding, if Employee (X) files any document containing the trade secret under seal and (Y) does not disclose the trade secret, except pursuant to court order.

Additionally, notwithstanding anything herein to the contrary, nothing in this Agreement or any other agreement between Employer and Employee shall prevent Employee from filing a charge, sharing information and communicating in good faith, without prior notice to Employer, with any federal government law enforcement or regulatory agency having jurisdiction

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over Employer or its operations, and cooperating in any investigation by any such federal government agency.

Except as provided herein, Employee agrees that Employee will not at any time, whether during or subsequent to the term of Employee's employment with Employer, in any fashion, form or manner, unless specifically consented to in writing by Employer (or as reasonably appropriate in connection with Employee's performance of his duties), either directly or indirectly, use or divulge, disclose, or communicate to any person, firm or corporation, in any manner whatsoever, any Confidential Information of any kind, nature, or description, subject to applicable law. The parties agree that any breach by Employee of any term of this <u>Section 8.4</u> resulting in material harm to Pediatrix or Employer is a material breach of this Agreement and shall constitute "<u>Cause</u>" for the termination of Employee's employment hereunder pursuant to <u>Section 4.1</u> hereof. In the event that Employee is ordered to disclose any Confidential Information, whether in a legal or a regulatory proceeding or otherwise, Employee shall provide Employer with prompt written notice of such request or order so that Employer may seek to prevent disclosure or, if that cannot be achieved, the entry of a protective order or other appropriate protective device or procedure in order to assure, to the extent practicable, compliance with the provisions of this Agreement. In the case of any disclosure required by law, Employee shall disclose only that portion of the Confidential Information that Employee is ordered to disclose in a legally binding subpoena, demand or similar order issued pursuant to a legal or regulatory proceeding. Employee may also disclose Confidential Information as necessary in any litigation or arbitration between Employee and Employer or any of its affiliates, subject to a mutually agreeable protective order or other appropriate protective device or procedure in order to assure, to the extent practicable, compliance with the provisions of this Agreement.

All Confidential Information, and all equipment, notebooks, documents, memoranda, reports, files, samples, books, correspondence, lists, other written and graphic records, in any media (including electronic or video) containing Confidential Information or relating to the business of Employer, which Employee shall prepare, use, construct, observe, possess, or control shall be and remain Employer's sole property (collectively "<u>Employer Property</u>"). Upon termination or expiration of this Agreement, or earlier upon Employer's request, Employee shall promptly deliver to Employer all Employer Property, retaining none other than Employee's personal contacts, calendar and personal correspondence and any of Employee's compensation-related information.

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such further actions and execute such further documents as Employer may deem necessary or desirable to further the purposes of this Agreement, including without limitation separate assignments of all right, title, and interest in and to all rights of copyright and all right, title, and interest in and to any inventions or patents and any reissues or extensions which may be granted therefore, and in and to any improvements, additions to, or modifications thereto, which Employee may acquire by invention or otherwise, the same to be held and enjoyed by Employer for its own use and benefit, and for the use and benefit of Employer's successors and assigns, as fully and as entirely as the same might be held by Employee had this assignment not been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6 *Clearance Procedure for Proprietary Rights Not Claimed by Employer.* In the event that Employee wishes to create or develop, *other than* on Employer's time or using Employer's resources, anything that may be considered Work Product but to which Employee believes Employee should be entitled to the personal benefit of, Employee agrees to follow the clearance procedure set forth in this Section. Before beginning any such work, Employee agrees to give Employer advance written notice and provide Employer with a sufficiently detailed written description of the work under consideration for Employer to make a determination regarding the work. Unless otherwise agreed in a writing signed by Employer prior to receipt, Employer shall have no obligation of confidentiality with respect to such request or description. Employer will determine in its sole discretion, within thirty (30) days after Employee has fully disclosed such plans to Employer, whether rights in such work will be claimed by Employer. If Employer determines that it does not claim rights in such work, Employer agrees to so notify Employee in writing and Employee may retain ownership of the work to the extent that such work has been expressly disclosed to Employer. If Employer fails to so notify Employee within such thirty (30) day period, then Employer shall be deemed to have agreed that such work is not considered Work Product for purposes of this Agreement. Employee agrees to submit for further review any significant improvement, modification, or adaptation that could reasonably be related to Employer's Business so that it can be determined whether the improvement, modification, or adaptation relates to the business or interests of Employer. Clearance under this procedure does not relieve Employee of the restrictive covenants set forth in this <u>Section 8</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7 *Non-Disparagement.* During the Employment Period and for a period of ten (10) years after the termination of this Agreement, Employee will not, directly or indirectly, as an individual or on behalf of a firm, corporation, partnership or other legal entity, intentionally, knowingly, or willingly make any comment that would reasonably be expected to be materially disparaging or negative to any other person or entity regarding Employer or any of its affiliates, agents, attorneys, employees, officers and directors, Employee's work conditions or circumstances surrounding Employee's separation from Employer or otherwise impugn or criticize the name or reputation of Employer, its affiliates, agents, attorneys, employees, officers or directors, orally or in writing. Upon termination of this Agreement, Employer and Pediatrix will instruct directors and executive officers of Employer and Pediatrix, respectively, that they shall not make any comment that would reasonably be expected to be materially disparaging or negative to Employee, Employee's work performance or circumstances surrounding Employee's separation from Employer or otherwise impugn or criticize the name or reputation of Employee. This Section 8.7 shall not be violated by truthful testimony or statements made in the normal course of Employee's employment or permitted competitive activities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8 *Review by Employee.* Employee has carefully read and considered the terms and provisions of this <u>Section 8</u>, and having done so, agrees that the restrictions set forth in this <u>Section 8</u> are fair and reasonably required for the protection of the interests of Employer. In the event that any term or provision set forth in this <u>Section 8</u> shall be held to be invalid or unenforceable by a court of competent jurisdiction, the parties hereto agree that such invalid or unenforceable term(s) or provision(s) may be severed from this Agreement without, in any manner, affecting the remaining portions hereof. Without limiting other possible remedies available to Employer, Employee agrees that injunctive or other equitable relief will be available to enforce the covenants set forth in this <u>Section 8</u>, such relief to be without the necessity of posting a bond. In the event that, notwithstanding the foregoing, any part of the covenants set forth in this <u>Section 8</u> shall be held to be invalid, overbroad, or unenforceable by an arbitrator or a court of competent jurisdiction, the parties hereto agree that such invalid, overbroad, or unenforceable provision(s) may be modified or severed from this Agreement without, in any manner, affecting the remaining portions of this <u>Section 8</u> (all of which shall remain in full force and effect). In the event that any provision of this <u>Section 8</u> related to time period or areas of restriction shall be declared by an arbitrator or a court of competent jurisdiction to exceed the maximum time period, area or activities such arbitrator or court deems reasonable and enforceable, said time period or areas of restriction shall be deemed modified to the minimum extent necessary to make the geographic or temporal restrictions or activities reasonable and enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.9 *Survival; Notice of Breach and Right to Cure.* If Employer reasonably believes that Employee has breached a provision of this <u>Section 8</u>, Employer shall provide prompt written notice thereof to Employee that explains such reasonably believed breach (the "<u>Alleged Breach</u>"). Employer agrees to work in good faith with Employee to provide Employee a reasonable opportunity to promptly cure such Alleged Breach. In the event that Employee, acting in good faith, promptly takes actions that would reasonably be expected to cure the Alleged Breach, including, with respect to a comment made by Employee that Employer reasonably believes is in breach of <u>Section 8.7</u> hereof, by Employee retracting such comment, then Employee shall be deemed not to be in breach of this <u>Section 8</u> with respect to the Alleged Breach. Employer and Employee further agree that Employee shall not be deemed to be in breach of any term of <u>Section 8.4</u> hereof unless such breach results in material harm to Pediatrix or Employer.

The provisions of this <u>Section 8</u> shall survive the termination of this Agreement and Employee's employment with Employer. In the event of a breach of this <u>Section 8</u> by Employee, as finally determined pursuant to <u>Section 11</u> hereof, Employer retains the right to terminate any continuing payments to Employee provided for in <u>Section 4</u> hereof. In the event of a breach of any provisions of this <u>Section 8</u> by Employee, as finally determined pursuant to <u>Section 11</u> hereof, the period for which those provisions would remain in effect shall be extended for a period of time equal to that period beginning when such breach commenced and ending when the activities constituting such breach shall have been finally terminated (unless Employer was aware of such breach and did not commence actions to cause Employee to cease his actions), in each case as finally determined pursuant to <u>Section 11</u> hereof. The provisions of this <u>Section 8</u> are expressly intended to benefit and be enforceable by other affiliated entities of Employer, who are express third party beneficiaries hereof. Employee shall not assist others in engaging in any of the activities described in the foregoing restrictive covenants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.** **Tax Matters**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 *Section 409A*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)*In General.* The parties intend that this Agreement will be administered in accordance with Section 409A of the Code. To the extent that any provision of this Agreement is ambiguous as to its compliance with Section 409A of the Code, the provision shall be read in such a manner so that all payments hereunder comply with Section 409A of the Code. Each payment pursuant to this Agreement is intended to constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b)(2). For purposes of Section 409A of the Code, the right to a series of installment payments under this Agreement shall be treated as a right to a series of separate payments. The parties agree that this Agreement may be amended, as reasonably requested by either party, and as may be necessary to fully comply with Section 409A of the Code and all related rules and regulations in order to preserve the payments and benefits provided hereunder without additional cost to either party. Employer makes no representation or warranty and shall have no liability to Employee or any other person if any provisions of this Agreement are determined to constitute deferred compensation subject to Section 409A of the Code but do not satisfy an exemption from, or the conditions of, Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*Six-Month Delay.* Anything in this Agreement to the contrary notwithstanding, if at the time of Employee's separation from service within the meaning of Section 409A of the Code, Employer determines that Employee is a "specified employee" within the meaning of Section 409A(a)(2)(B)(i) of the Code, then to the extent any payment or benefit that Employee becomes entitled to under this Agreement on account of Employee's "separation from service" (within the meaning of Section 409A) that would be considered "non-qualified deferred compensation", such payment shall not be payable and such benefit shall not be provided until the date that is within fifteen (15) days after the end of the six-month period beginning on the date of such "separation from service" or, if earlier, within fifteen (15) days after the appointment of the personal representative or executor of Employee's estate following Employee's death. If any such delayed cash payment is otherwise payable on an installment basis, the first payment shall include a catch-up payment covering amounts that would otherwise have been paid during the six-month period but for the application of this provision, and the balance of the installments shall be payable in accordance with their original schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)*Reimbursements.* All in-kind benefits provided and expenses eligible for reimbursement under this Agreement shall be provided by Employer or incurred by Employee during the time periods set forth in this Agreement. All reimbursements shall be paid as soon as administratively practicable, but in no event shall any reimbursement be paid after the last day of the taxable year following the taxable year in which the expense was incurred. The amount of in-kind benefits provided or reimbursable expenses incurred in one taxable year shall not affect the in-kind benefits to be provided or the expenses eligible for reimbursement in any other taxable year (except for any lifetime or other aggregate limitation applicable to medical expenses). Such right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)*Separation from Service.* To the extent that any payment or benefit described in this Agreement constitutes "non-qualified deferred compensation" under Section 409A of the Code, and to the extent that such payment or benefit is payable upon Employee's termination of employment, then such payments or benefits shall be payable only upon

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Employee's "separation from service" as defined under Section 409A. The determination of whether and when a separation from service has occurred shall be made in accordance with the presumptions set forth in Treasury Regulation Section 1.409A-1(h).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)*Later Calendar Year*. To the extent that any payment or benefit described in this Agreement constitutes "non-qualified deferred compensation" under Section 409A of the Code, and not otherwise exempt from the application of Section 409A, then, if the period during which Employee may consider and sign the Release or the period in which the Employer can make a severance payment spans two calendar years, any payment or benefit described in this Agreement will not be made or begin until the later calendar year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2***Section 280G***. Notwithstanding any other provision of this Agreement or any other plan, arrangement or agreement to the contrary, if any of the payments or benefits provided or to be provided by Employer or its affiliates to Employee or for Employee's benefit pursuant to the terms of this Agreement or otherwise (the "<u>Covered Payments</u>") constitute parachute payments (the "<u>Parachute Payments</u>") within the meaning of Section 280G of the Code and, but for this <u>Section 9</u>, would be subject to the excise tax imposed under Section 4999 of the Code (or any successor provision thereto) or any similar tax imposed by state or local law or any interest or penalties with respect to such taxes (collectively, the "<u>Excise Tax</u>"), then prior to making the Covered Payments, a calculation shall be made comparing (i) the Net Benefit (as defined below) to Employee of the Covered Payments after payment of the Excise Tax to (ii) the Net Benefit to Employee if the Covered Payments are limited to the extent necessary to avoid being subject to the Excise Tax. Only if the amount calculated under (i) above is less than the amount under (ii) above will the Covered Payments be reduced to the minimum extent necessary to ensure that no portion of the Covered Payments is subject to the Excise Tax (that amount, the "<u>Reduced Amount</u>"). "<u>Net Benefit</u>" shall mean the present value of the Covered Payments net of all federal, state, local, foreign income, employment and excise taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Any such reduction shall be made in accordance with Section 409A and the following: (i) the Covered Payments consisting of cash severance benefits that do not constitute nonqualified deferred compensation subject to Section 409A shall be reduced first, in reverse chronological order; (ii) all other Covered Payments consisting of cash payments, and Covered Payments consisting of accelerated vesting of equity based awards to which Treas. Reg. § 1.280G-1 Q/A-24(c) does not apply, and that in either case do not constitute nonqualified deferred compensation subject to Section 409A, shall be reduced second, in reverse chronological order; (iii) all Covered Payments consisting of cash payments that constitute nonqualified deferred compensation subject to Section 409A shall be reduced third, in reverse chronological order; and (iv) all Covered Payments consisting of accelerated vesting of equity-based awards to which Treas. Reg. § 1.280G-1 Q/A-24(c) applies shall be the last Covered Payments to be reduced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any determination required under this <u>Section 9</u> shall be made in writing in good faith by an independent accounting firm selected by Employer prior to the applicable Section 280G change in control (the "<u>Accountants</u>"). Employer and Employee shall provide the Accountants with such information and documents as the Accountants may reasonably request in order to make a determination under this <u>Section 9</u>. For purposes of making the calculations and determinations required by this <u>Section 9</u>, the Accountants may rely on reasonable, good-faith assumptions and approximations concerning the application of Section

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280G and Section 4999 of the Code. The Accountants' determinations shall be final and binding on Employer and Employee. Employer shall be responsible for all fees and expenses incurred by the Accountants in connection with the calculations required by this <u>Section 9</u>. Employer shall cooperate with the Employee in good faith in valuing, and the Accountants shall take into account the value of, services to be provided by the Employee (including the Employee agreeing to refrain from performing services pursuant to a covenant not to compete) before, on or after the date of the transaction which causes the application of Section 280G of the Code such that payments in respect of such services may be considered to be "reasonable compensation" within the meaning of Q&A-9 and Q&A-40 to Q&A-44 of the final regulations under Section 280G of the Code and/or exempt from the definition of the term "parachute payment" within the meaning of Q&A-2(a) of such final regulations in accordance with Q&A-5(a) of such final regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)It is possible that after the determinations and selections made pursuant to this <u>Section 9</u>, Employee will receive Covered Payments that are in the aggregate more than the amount intended or required to be provided after application of this <u>Section 9</u> ("<u>Overpayment</u>") or less than the amount intended or required to be provided after application of this <u>Section 9</u> ("<u>Underpayment</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)In the event that: (A) the Accountants determine, based upon the assertion of a deficiency by the Internal Revenue Service against either Employer or Employee that the Accountants believe has a high probability of success, that an Overpayment has been made or (B) it is established pursuant to a final determination of a court or an Internal Revenue Service proceeding that has been finally and conclusively resolved that an Overpayment has been made, then Employee shall pay any such Overpayment to Employer together with interest at the applicable federal rate (as defined in Section 7872(f)(2)(A) of the Code) from the date of Employee's receipt of the Overpayment until the date of repayment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)In the event that: (A) the Accountants, based upon controlling precedent or substantial authority, determine that an Underpayment has occurred or (B) a court of competent jurisdiction determines that an Underpayment has occurred, any such Underpayment will be paid promptly by Employer to or for the benefit of Employee together with interest at the applicable federal rate (as defined in Section 7872(f)(2)(A) of the Code) from the date the amount should have otherwise been paid to Employee until the payment date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 *Tax Withholding.* All amounts payable under this Agreement shall be subject to applicable income and employment tax withholding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.** **Dispute Resolution; Injunctive Relief**. If any controversy or claim arises out of or relating to this Agreement, or any alleged breach hereof, Employee and Employer shall first try to resolve such controversy or claim through mediation using the services of the American Arbitration Association. If any such controversy or claim cannot be resolved by mediation pursuant to the foregoing, Employee and Employer agree that such controversy or claim shall be finally determined by a single arbitrator, jointly selected by Employee and Employer, provided that if Employee and Employer are unable to agree upon a single arbitrator after reasonable efforts, the arbitrator shall be an impartial arbitrator selected by the American Arbitration Association.

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Employer shall bear all costs associated with such mediation and, if necessary, arbitration, including but not limited to all costs of the mediator and arbitrator, and shall reimburse Employee on a monthly basis for Employee's reasonable legal and other expenses, including all fees, incurred in connection with any such mediation and, if necessary, arbitration, provided, however, that if Employer ultimately prevails in any arbitration (as determined by the arbitrator), the arbitrator shall have the power to require Employee to reimburse Employer for all or a portion of the advanced legal fees and other expenses as determined by the arbitrator (and, if the arbitrator finds that Employer prevailed on certain claims and Employee prevailed on others, the arbitrator shall have the power to require Employee to reimburse Employer for a portion of the advanced legal fees and other expenses determined by the arbitrator based on those claims on which Employer prevailed). The mediation and, if necessary, arbitration proceedings shall be held in Sunrise, Florida, unless otherwise mutually agreed by the parties, and shall be conducted in accordance with the American Arbitration Association National Rules for the Resolution of Employment Disputes then in effect. Judgment on any award rendered by the arbitrator may be entered and enforced by any court having jurisdiction thereof. Any such mediation and, if necessary, arbitration shall be treated as confidential by all parties thereto, except as otherwise provided by law or as otherwise necessary to enforce any judgment or order issued by the arbitrator.

Notwithstanding anything herein to the contrary, if Employer or Employee shall require immediate injunctive relief, then the party shall be entitled to seek such relief in any court having jurisdiction, and if the party elects to do so, the other party hereby consents to the jurisdiction of the state and federal courts sitting in the State of Florida and to the applicable service of process. Employee and Employer hereby waive and agree not to assert, to the fullest extent permitted by applicable law, any claim that (i) they are not subject to the jurisdiction of such courts, (ii) they are immune from any legal process issued by such courts and (iii) any litigation or other proceeding commenced in such courts is brought in an inconvenient forum. In the event that Employer brings suit against Employee seeking injunctive relief, Employer agrees to advance all of Employee's reasonable legal and other expenses, including all fees, incurred by Employee in connection with such action, provided, however, that if Employer ultimately prevails in seeking injunctive relief, Employee shall reimburse Employer all such advanced legal fees and other expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.** **Governing Law**. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida without regard to its conflict of laws principles to the extent that such principles would require the application of laws other than the laws of the State of Florida.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.** **Notices**. Any notice required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been given when (i) delivered by hand, (ii) delivered by electronic mail that is confirmed by non-automated means, or (iii) when delivered or delivery is refused if sent by registered or certified U.S. mail, return receipt requested, postage prepaid, or via reputable overnight courier, addressed as follows:

If to Employer or Pediatrix: PMG Services, Inc. If to Employee: Don Gregory Neeb

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1301 Concord TerraceSunrise, FL 33323Attention: General CounselEmail: maryann.moore@pediatrix.com At address provided to Employer.

or to such other addresses as either party hereto may from time to time give notice of to the other in the aforesaid manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.** **Benefits; Binding Effect**. This Agreement shall be for the benefit of and binding upon the parties hereto and their respective heirs, personal representatives, legal representatives, successors and, where applicable, assigns. Notwithstanding the foregoing, Employee may not assign the rights or benefits hereunder without the prior written consent of Employer. This Agreement may be assigned by Employer to an affiliate of Employer (with a sufficient net worth to perform the obligations hereunder) in connection with a corporate reorganization, restructuring, or similar corporate transaction, or to a successor to Employer in connection with a Change in Control, upon notice to Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.** **Severability**. The invalidity of any one or more of the words, phrases, sentences, clauses or sections contained in this Agreement shall not affect the enforceability of the remaining portions of this Agreement or any part thereof, all of which are inserted conditionally on their being valid in law, and, in the event that any one or more of the words, phrases, sentences, clauses or sections contained in this Agreement shall be declared invalid, this Agreement shall be construed as if such invalid word or words, phrase or phrases, sentence or sentences, clause or clauses, or section or sections had not been inserted. If such invalidity is caused by length of time or size of area, or both, the otherwise invalid provision will be considered to be reduced to a period or area, which would cure such invalidity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.** **Waivers**. The waiver by either party hereto of a breach or violation of any term or provision of this Agreement shall not operate nor be construed as a waiver of any subsequent breach or violation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.** **Damages**. Nothing contained herein shall be construed to prevent Employer or Employee from seeking and recovering from the other damages sustained by either or both of them as a result of a breach of any term or provision of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.** **No Third Party Beneficiary**. Except as provided in <u>Section 8.9</u> hereof, nothing expressed or implied in this Agreement is intended, or shall be construed, to confer upon or give any person (other than the parties hereto and, in the case of Employee, Employee's heirs, personal representative(s) and/or legal representative) any rights or remedies under or by reason of this Agreement. No agreements or representations, oral or otherwise, express or implied, have been made by either party with respect to the subject matter of this Agreement which agreements or representations are not set forth expressly in this Agreement, and this Agreement supersedes any other employment agreement between Employer and Employee.

*The remainder of this page has been left blank intentionally.*

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**IN WITNESS WHEREOF**, the undersigned have executed this Agreement effective as of the Effective Date.

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| | |
|:---|:---|
| &nbsp;&nbsp;**EMPLOYER:**<br>**PMG SERVICES, INC.**<br>| &nbsp;&nbsp;**EMPLOYEE:** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By: <u>/s/ Mary Ann E. Moore</u><br>Mary Ann E. Moore <br>Executive Vice President, Chief Administrative Officer, General Counsel & Secretary <br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By: <u>/s/ Don Gregory Neeb</u><br>Don Gregory Neeb |

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**PEDIATRIX MEDICAL GROUP, INC.**

By: <u>/s/ Shirley A. Weis</u> 

Shirley A. Weis

Chair, Compensation and Talent

Committee

Signature Page to Employment Agreement

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**EXHIBIT A**

**BUSINESS OF EMPLOYER**

As of the date hereof, Employer, directly or through its affiliates, provides professional medical services and all aspects of practice management services in medical practice areas that include, but are not limited to, the following (collectively referred to herein as "**Employer's Business**"):

(1) Neonatology, including hospital well baby care;

(2) Maternal-Fetal Medicine, including general obstetrics services;

(3) Pediatric Intensive Care, including Pediatric Hospitalist Care;

(4) Newborn hearing screening services;

(5) Pediatric Surgery; and

(6) Pediatric Emergency Medicine.

References to Employer's Business in this Agreement shall include such other medical service lines, practice management services and other businesses in which Employer is engaged during the Employment Period; *provided,* that to be considered a part of Employer's Business, Employer must have engaged in such other service line, practice management service or other business at least six (6) months prior to the termination of Employee's employment. For purposes of this <u>Exhibit A</u>, businesses of Employer shall include the businesses conducted by Employer's subsidiaries, entities under common control and affiliates as defined under Rule 144 of the Securities Act of 1933, as amended. Such affiliates shall include the professional corporations and associations whose operating results are consolidated with Employer for financial reporting purposes, provided that for purposes of <u>Sections 8.2</u> and <u>8.3</u> of this Agreement, the term "affiliates" shall only mean the foregoing affiliates and subsidiaries. As used in the Agreement, the term "affiliate" shall exclude unrelated entities owned by an acquirer of Employer or Pediatrix.

Notwithstanding the foregoing, Employer acknowledges and agrees to the following exceptions and clarifications regarding the scope of Employer's Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. *Hospital Services.* Employer and Employee acknowledge that, as of the date hereof, Employer does not currently operate hospitals, hospital systems or universities. Nevertheless, the businesses of hospitals, hospital systems and universities would be the same as Employer's Business where such hospitals, hospital systems or universities provide or contract with others to provide some or all of the medical services included in Employer's Business. Therefore, the parties desire to clarify their intent with respect to the limitations on Employee's ability to work for or contract with others to provide services for a hospital, hospital system or university during the Employment Period and during the Restricted Period. <u>Section 8.1</u> shall not be deemed to restrict Employee's ability to work for a hospital, hospital system or university if the hospital, hospital system or university does not provide any of the medical services included in Employer's Business. Furthermore, even if a hospital, hospital system or university provides medical services that are included in Employer's Business, Employee may work for such hospital, hospital system or university if Employee has no direct supervisory responsibility for or involvement in the hospital's, hospital system's or university's provision of medical services that are Employer's Business. For the avoidance of doubt, Employer and Employee agree that if

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Employee becomes the Chief Investment and Strategy Officer (or similar position), a hospital system or health system, or other executive officer of similar level to the foregoing, that Employee shall not be in breach of the provisions of this Agreement. Finally, Employer agrees that Employee may hold direct supervisory responsibility for or be involved in the medical services of a hospital, hospital system or university that are included in Employer's Business so long as such hospital, hospital system or university is located at least ten (10) miles from a medical practice owned or operated by Employer or its affiliate. Subject to paragraph B below, the provisions of this paragraph shall not apply to the extent that, after the date hereof, Employer enters into the business of operating a hospital or hospital system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. *De Minimus Exception.* Employer agrees that a medical service line (other than those listed in items (1) through (8) above), practice management service or other business in which Employer is engaged shall not be considered to be a part of Employer's Business if such medical service line, practice management service or other business constitutes less than three percent (3%) of Employer's annual revenues.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. *Divested Lines of Service.* Employer agrees that any medical service line (including those listed in items (1) through (8) above), practice management, or other business in which Employer is engaged that is divested pursuant to a disposition, sale of assets or equity, or otherwise after the Effective Date shall not be considered to be a part of Employer's Business effective as of the effective date of such divestiture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. *Certain Ownership Interests.* It shall not be deemed to be a violation of <u>Section 8.1</u> for Employee to: (i) own, directly or indirectly, one percent (1%) or less of a publicly-traded entity that has a market capitalization of $1 billion or more; (ii) own, directly or indirectly, five percent (5%) or less of a publicly-traded entity that has a market capitalization of less than $1 billion; or (iii) own, directly or indirectly, less than ten percent (10%) of a privately-held business or company, if Employee is at all times a passive investor with no board representation, management authority or other special rights to control operations of such business or company.

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**EXHIBIT B**

**FORM OF RELEASE**

***GENERAL RELEASE OF CLAIMS***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.[NAME] ("<u>Employee</u>"), for himself or herself and his or her family, heirs, executors, administrators, legal representatives and their respective successors and assigns, in exchange for the consideration received pursuant to <u>Section 4</u>.[●] of that certain Employment Agreement, dated as of [_____ __], 2025, by and between Employee and Employer, to which this release is attached as <u>Exhibit B</u> (the "<u>Employment Agreement</u>"), does hereby release and forever discharge PMG Services, Inc. ("<u>Employer</u>"), its subsidiaries, affiliated companies, successors and assigns, and its current or former directors, officers, employees, shareholders or agents in such capacities (collectively with Employer, the "<u>Released Parties</u>") from any and all actions, causes of action, suits, controversies, claims and demands whatsoever, for or by reason of any matter, cause or thing whatsoever, whether known or unknown arising as a result of events occurring through the date hereof, including, but not limited to, all claims under any laws applicable to Employee's employment, whether for discrimination, harassment, retaliation, tort, breach of express or implied employment contract, wrongful discharge, intentional infliction of emotional distress, or defamation or injuries incurred on the job or incurred as a result of loss of employment. Employee acknowledges that Employer encouraged Employee to consult with an attorney of Employee's choosing, and through this General Release of Claims encourages Employee to consult with Employee's attorney with respect to possible claims under the Age Discrimination in Employment Act ("<u>ADEA</u>") and that Employee understands that the ADEA is a Federal statute that, among other things, prohibits discrimination on the basis of age in employment and employee benefits and benefit plans. Without limiting the generality of the release provided above, Employee expressly waives any and all claims under ADEA that Employee may have as of the date hereof. Employee further understands that by signing this General Release of Claims Employee is in fact waiving, releasing and forever giving up any claim under the ADEA as well as all other laws within the scope of this paragraph 1 that may have existed on or prior to the date hereof. Notwithstanding anything in this paragraph 1 to the contrary, this General Release of Claims shall not apply to (i) any actions to enforce rights to receive any payments or benefits which may be due Employee pursuant to <u>Section 4</u> of the Employment Agreement, or under any of Employer's employee benefit plans, (ii) any rights or claims that may arise as a result of events occurring after the date this General Release of Claims is executed, (iii) any indemnification rights Employee may have as a former officer or director of Employer or its subsidiaries or affiliated companies, (iv) any claims for benefits under any directors' and officers' liability policy maintained by Employer or its subsidiaries or affiliated companies in accordance with the terms of such policy, (v) any rights as a holder of equity securities of Employer, (vi) any claims that cannot be waived as a matter of law, (vii) any claims Employee may have to government-sponsored and administered benefits such as unemployment insurance, workers' compensation insurance (excluding claims for retaliation under workers' compensation laws), state disability insurance, and paid family leave benefits, and (viii) any benefits that vested on or prior to the termination date pursuant to a written benefit plan sponsored by Employer and governed by the federal law known as "ERISA".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Employee represents that Employee has not filed against the Released Parties any complaints, charges, or lawsuits arising out of Employee's employment, or any other matter arising

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on or prior to the date of this General Release of Claims, and covenants and agrees that Employee will never individually or with any person file, or commence the filing of, any charges, lawsuits, complaints or proceedings with any governmental agency, or against the Released Parties with respect to any of the matters released by Employee pursuant to paragraph 1 hereof (a "<u>Proceeding</u>"), provided, however, Employee retains the right to commence a Proceeding to challenge whether Employee knowingly and voluntarily waived Employee's rights under ADEA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Notwithstanding anything in this Agreement to the contrary, nothing in this Agreement or any other agreement between Employer and Employee shall prevent Employee from filing a charge, sharing information and communicating in good faith, without prior notice to Employer, with any federal government agency having jurisdiction over Employer or its operations, and cooperating in any investigation by any such federal government agency; however, to the maximum extent permitted by law, Employee agrees that if such an administrative claim is made, Employee shall not be entitled to recover any individual monetary relief or other individual remedies, provided that, for purposes of clarity, this limitation on monetary recovery does not apply to whistleblower proceedings before the United States Securities and Exchange Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Employee hereby acknowledges that Employer has informed Employee that Employee has up to twenty-one (21) days to sign this General Release of Claims and Employee may knowingly and voluntarily waive that twenty-one (21) day period by signing this General Release of Claims earlier. Employee also understands that Employee shall have seven (7) days following the date on which Employee signs this General Release of Claims within which to revoke it by providing a written notice of Employee's revocation to Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.Employee acknowledges that this General Release of Claims will be governed by and construed and enforced in accordance with the internal laws of the State of Florida applicable to contracts made and to be performed entirely within such State.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.Employee acknowledges that Employee has read this General Release of Claims, that Employee has been advised that Employee should consult with an attorney before Employee executes this general release of claims, and that Employee understands all of its terms and executes it voluntarily and with full knowledge of its significance and the consequences thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.This General Release of Claims shall take effect on the eighth day following Employee's execution of this General Release of Claims unless Employee's written revocation is delivered to Employer within seven (7) days after such execution.

<u>[DO NOT SIGN]</u> , 20

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## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Mark S. Ordan, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of Pediatrix Medical Group, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 5, 2025

By: <u>/s/</u> <u>Mark S. Ordan</u> 

Mark S. Ordan

Chief Executive Officer

(Principal Executive Officer)

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## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Kasandra H. Rossi, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of Pediatrix Medical Group, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 5, 2025

By: <u>/s/</u> <u>Kasandra H. Rossi</u> 

Kasandra H. Rossi

Chief Financial Officer

(Principal Financial Officer and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal Accounting Officer)

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## Exhibit 32.1

**Exhibit 32.1**

**Certification Pursuant to 18 U.S.C Section 1350**

**(Adopted by Section 906 of the Sarbanes-Oxley Act of 2002)**

In connection with the Quarterly Report of Pediatrix Medical Group, Inc. on Form 10-Q for the quarter ended June 30, 2025 (the "Report"), each of the undersigned hereby certifies, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that (i) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and (ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Pediatrix Medical Group, Inc.

A signed original of this written statement required by Section 906 has been provided to Pediatrix Medical Group, Inc. and will be retained by Pediatrix Medical Group, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

August 5, 2025

By: <u>/s/ Mark S. Ordan</u> 

Mark S. Ordan

Chief Executive Officer

(Principal Executive Officer)

By: /<u>s/</u> <u>Kasandra H. Rossi</u> 

Kasandra H. Rossi

Chief Financial Officer

(Principal Financial Officer and

Principal Accounting Officer)

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