Pediatrix Medical Group: Strong Financial Performance and Strategic Improvements Justify Buy RatingWe believe this improvement is primarily due to the recent exit from noncore operations, such as primary and urgent care sites, which was completed at the end of 2024. Higher acuity cases and more favorable reimbursement trends are contributing factors to this quarter's performance, in our view. At the same time, the continued strength in same-store growth reflects ongoing improvements in collection activity, higher patient acuity in neonatology, increased administrative fees, and a more favorable payer mix. Hospital-based patient services and office-based patient services were up about 0.7% and down 0.6%, respectively; neonatal intensive care unit (NICU) days increased by roughly 2.2%. In total, same-unit revenue attributable to patient volume increased 0.4% for the quarter.