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National Medical Acquires First Allied

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Times Staff Writer

In what it termed a “major acquisition,” Los Angeles-based National Medical Enterprises said Wednesday that it has acquired First Allied Group’s 19 long-term care facilities for more than $34 million in cash and assumable debt.

First Allied of Gloucester, Mass., operates 12 facilities in Maine, five in Florida and two in Massachusetts, with a total of 1,706 beds, according to Neal Elliott, president and chief executive of Hillhaven Corp., NME’s suburban Washington-based nursing home subsidiary.

NME, the nation’s second-largest health-care services company, had signed a definitive purchase agreement with First Allied in September, 1984.

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No Layoffs Planned

Anthony Pace, a spokesman for NME, said he didn’t know the reason for the delay in consummating the agreement. First Allied officials could not be reached for comment late Wednesday.

However, Pace said no layoffs are planned among First Allied’s 1,600-person work force as a result of the acquisition, which gives NME an expanded presence in the Northeast.

NME, a major provider of health-care products and services, owns, operates or manages 516 acute, rehabilitative, psychiatric and long-term care facilities with more than 61,000 beds.

Hillhaven now operates 360 long-term care hospitals with more than 43,000 beds in 41 states.

James F. Delaney Jr., formerly president of First Allied Group, serves as director of operations for Hillhaven’s Northeastern region.

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