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                                                                    Exhibit 99.1


For more information:
Bob Kneeley
Director, Investor Relations
954-384-0175 x-5300

                       PEDIATRIX COMPLETES MAGELLA MERGER
                         FOLLOWING SHAREHOLDER APPROVAL

FORT LAUDERDALE, FLORIDA, May 15, 2001--Pediatrix Medical Group, Inc.,
(NYSE:PDX) has completed the previously announced merger transaction with
Magella Healthcare Corporation following shareholder approval at its Annual
Meeting of Shareholders today.

Pediatrix expects the transaction will have an immediate positive impact on its
earnings per share.

Under the terms of the agreement Pediatrix issued approximately 7.3 million
shares of common stock in exchange for all outstanding capital stock and
substantially all outstanding warrants of Magella. In addition, Pediatrix
assumed certain obligations to issue up to 1.35 million shares of common stock
pursuant to Magella stock option plans. Pediatrix has repaid an estimated $25.0
million of Magella bank debt and assumed $16.0 million of subordinated notes
convertible into approximately 600,000 shares of Pediatrix common stock.

Following the merger, Pediatrix employs more than 570 physicians practicing in
27 states and Puerto Rico. Its neonatal physicians staff more than 185
hospital-based neonatal intensive care units (NICUs). A total of 95
perinatologists, physicians who specialize in maternal-fetal care, practice in
markets where Pediatrix provides neonatal physician services.

Pediatrix shareholders also elected a slate of six directors. At their Annual
Meeting, Roger J. Medel, M.D., Pediatrix's Chairman of the Board and Chief
Executive Officer, Cesar Alvarez, Waldemar Carlo, M.D., M. Douglas Cunningham,
M.D., Vice President, Pediatrix, and Michael Fernandez were re-elected to the
board of directors. Kristen Bratberg, President of Pediatrix, was elected as a
new director.



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As part of the terms of the merger agreement with MAGELLA, Pediatrix's Board of
Directors expects to appoint three new directors effective May 16, 2001. The
proposed new directors will be John K. Carlyle, former Chief Executive Officer
of MAGELLA, D. Scott Mackesy, Principal, Welsh, Carson, Anderson & Stowe, and
Ian M. Ratner, M.D., former Chairman and Chief Medical Officer of MAGELLA.

At its Annual Meeting, Pediatrix shareholders also voted to approve an amended
stock option plan.

About Pediatrix Medical Group, Inc.:

Pediatrix was founded in 1979. Its neonatal physicians provide services at more
than 155 NICUs and its perinatal physicians provide services in 10 markets where
Pediatrix's neonatal physicians practice. Combined, Pediatrix and its affiliated
professional corporations employ more than 460 physicians in 24 states and
Puerto Rico. Additional information is available on the Internet:
www.pediatrix.com.

About Magella Healthcare Corporation:

Magella was founded in 1998 and was sponsored by the investment firm Welsh,
Carson, Anderson & Stowe. The physician group provides neonatal services in 11
markets in eight states, and maternal-fetal medicine services in five markets in
three states. A total of 80 neonatologists provide care for patients at 30
NICUs, with current annualized patient volume of approximately 180,000 NICU
patient days. In addition, there are a total of 29 maternal-fetal medicine
subspecialists practicing as part of the group.

Except for historical information, matters discussed in this release include
forward-looking statements that involve risks and uncertainties including, but
not limited to, business, financial and integration risks. In addition,
Pediatrix details other risk factors in its Annual Report on Form 10-K for the
year ended December 31, 2000, filed with the U.S. Securities and Exchange
Commission. These risks and uncertainties could cause actual results to differ
materially from those projected or anticipated in the forward-looking
statements.