Abbey Healthcare Lays Out Management Future

COSTA MESA — Abbey Healthcare Corp. on Monday tried to quell speculation that sparked a 7.4% drop in its stock price on Friday.

Last week, Abbey asked Jerilyn Asher to step down as president, then withdrew the request a day later. A company spokesman said Asher flew to Denver on Friday to meet with Timothy Aitken, Abbey’s chief executive officer, to resolve the situation.

Meanwhile, Abbey’s stock fell Friday as speculation swirled in the marketplace that the management troubles could lead to larger problems at the home health-care company.

In a statement Monday, Abbey said Asher will leave the company in the first half of next year to start a new business. Asher disagreed with Abbey’s board on the company’s “strategic direction and certain operational issues,” the statement said. Abbey and Asher will continue to work together on her new venture, the company said.

After Asher leaves, Aitken will resume the duties of president, the company said.

Also, Asher described as unfounded a report last week that she had unearthed irregularities in the company’s accounting.

In Monday’s Nasdaq trading, Abbey’s stock recovered $1 a share to close at $22.

The latest turmoil in Abbey’s management follows the February firing of Victor Chaltiel, who served as president and chief executive. Chaltiel formerly was head of Total Pharmaceutical Care Inc., which Abbey acquired in November, 1993.

Chaltiel has filed a lawsuit against Abbey alleging that he was dismissed without cause.