Denver After months of wrangling over a service contract that resulted in dueling lawsuits and the demise of two Coram Healthcare subsidiaries, Coram and Blue Bell, Pa.-based Aetna U.S. Healthcare have settled all legal claims and ended the suits.

Terms of the settlement were not disclosed; however, the two companies will attempt to negotiate a new contract for home infusion services, officials said.

Both companies filed lawsuits over a five-year, fixed-fee service contract that Coram terminated in June, saying that utilization was much higher than Aetna represented. Coram subsidiaries Resource Network and Independent Practice Association, which managed a network of contact providers on behalf of managed care organizations, later folded after filing for Chapter 11 bankruptcy protection.

The settlement, said Coram chief executive officer Daniel Crowley, "will allow us to focus all of our energy ... on key operating and financial initiatives." He added that the company will concentrate on creating "a capital structure that will position Coram on a stronger financial foundation by reducing debt."

Aetna officials did not return calls seeking comment.

The lawsuit has taken its toll on Coram, which in its annual report acknowledged that it "has not been profitable and may not become profitable, in which event its business and stock price could be adversely affected."

The infusion company, which in March moved from the New York Stock Exchange to trading on the Over-the Counter Bulletin Board, also declared more than $300 million of indebtedness and said if its debt agreements are not amended, "there can be no assurance that it will have sufficient liquidity to continue to fund operations."

The company has restructured to focus on its core infusion business, but cited stiffer competition, higher days sales outstanding and increased costs as factors hampering its growth. -S.H.