Nu-Med Cancels Acquisition Plan
Nu-Med, an Encino-based hospital chain, has canceled an agreement announced in April to acquire Community Care Systems of Boston, which has seven psychiatric clinics in New England.
As a result, the two companies are suing each other. Community Care filed a $119-million suit last month in Federal District Court in Boston claiming breach of contract, said Frederick J. Thatcher, president of Community Care.
Nu-Med has filed a countersuit, according to a prepared statement from the company last week. The statement alleged that Community Care failed to meet certain conditions of the agreement, but declined to elaborate.
Thatcher said the deal fell apart because Nu-Med chairman Maurice Lewitt “decided he couldn’t afford to go through with it.” Over the past two years, Nu-Med has grown from a small hospital-billing review company to a chain of 19 hospitals.
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