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September 18, 2007

Richardson Hollow folds, Sweetser steps in

After Richardson Hollow Mental Health Services in Lewiston folded last night, Sweetser, a mental health agency in Saco, stepped in to take over the agency's contracts, according to the Sun Journal in Lewiston.

Sweetser, which has about 1,000 employees and up to 25,000 clients in Maine, was planning to hold meetings today with Richardson Hollow's roughly 45 employees to rehire them, Carl Pendleton, Sweetser's CEO, told the paper.

A little more than three weeks ago, Richardson Hollow CEO Linda Hertell issued an ultimatum to Hollow employees to either give up their health insurance, vacation time, mileage reimbursement and other benefits, or quit. She blamed the company's financial problems on low reimbursements from the state's MaineCare program, which pays Richardson Hollow for the care it provides.

Richardson Hollow's finances have been under scrutiny for months, and the state has asked for an audit of the business.

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