Nu-Med Reports Loss of $3.1 Million in 2nd Quarter

Nu-Med Inc., an Encino operator of psychiatric hospitals and acute-care centers, said it lost $3.1 million in the fiscal second quarter that ended Oct. 31, mainly because of problems at its Medical Center of La Mirada hospital. That compares to a year-earlier loss of $3.3 million.

Second-quarter revenues plunged 53% to $28.4 million from $60.8 million, due mainly to the sale of three acute-care hospitals in the fiscal 1991 fourth quarter.

Nu-Med said it is looking into strategies to reduce the losses and negative cash flow at the La Mirada hospital, which, according to Nu-Med, has been hobbled by an unfavorable patient mix and lower occupancy.

For the six months that ended Oct. 31, Nu-Med’s loss widened to $3.8 million from $2.36 million a year earlier. Revenues fell 54% to $58.54 million from $127 million.