Four months after receiving a pink slip from Abbey Healthcare Group, Victor Chaltiel has returned to healthcare management as the new chairman, president and chief executive officer of Medical Ambulatory Care, an outpatient dialysis chain.
Mr. Chaltiel's appointment was disclosed in a $75 million debt offering Spokane, Wash.-based Medical Ambulatory filed June 6 with the Securities and Exchange Commission. He will take over the duties of Leonard Frie, the former president, who was reassigned as executive vice president and chief operating officer of the company.
Mr. Chaltiel will work with John King, Medical Ambulatory's chief financial officer, and company directors Maris Andersons, Peter Grauer and David Wilson. Messrs. Grauer and Wilson are senior executives at DLJ Merchant Banking Partners-the equity fund that purchased a 70% interest in Medical Ambulatory from National Medical Enterprises for $75 million in April (April 25, p. 20).
Mr. Chaltiel, 52, had been president and CEO at Abbey Healthcare Group from November 1993 until February 1994, when he was fired from the company. He came to Abbey from Total Pharmaceutical Care, which was purchased by Costa Mesa, Calif.-based Abbey last year for $197 million.
He subsequently filed a $6 million lawsuit in April against the company and its chairman, Timothy Aitken, alleging breach of contract, fraud and deceit (June 13, p. 52). Mr. Chaltiel sought an additional $1 million in compensation from a state arbitrator.
On June 9, the suit was moved from Superior Court in Los Angeles into arbitration and was consolidated with the arbitration suit into a single $7 million complaint.
Mr. Aitken recently told Abbey shareholders he expects to win the lawsuit.
Mr. Chaltiel couldn't be reached for comment. However, Mr. Wilson said bringing in Mr. Chaltiel to run the company made sense for several reasons.
"He has a lot of experience in building and running public companies," Mr. Wilson said. "He also has some pretty good background in dialysis from his days at Baxter International (where Mr. Chaltiel worked from 1967 until 1985). And he's someone whom DLJ has dealt with in the past."
New York-based Donaldson, Lufkin & Jenrette, parent company of DLJ Merchant Banking Partners, assisted Abbey with its purchase of Total Pharmaceutical Care last year.
Terms of Mr. Chaltiel's employment agreement weren't disclosed. A copy of Mr. Chaltiel's agreement will be included in an amendment to the offering.
Medical Ambulatory Care provides outpatient dialysis services through 37 facilities in eight states, 17 of which are located in California. For fiscal 1993, the company recorded net income of $6.45 million on revenues of $71 million.