The contentious closure of a safety net hospital in Oak Park, Illinois, is poised to escalate into a legal dispute as it heads to the courtroom. Last month, the hospital shut down unexpectedly, leaving the community reeling.
Amidst a barrage of accusations exchanged between the hospital’s property owner and its CEO of operations, recent filings indicate that the matter could soon be presided over by a Cook County Circuit Court judge.
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West Suburban Medical Center, a crucial healthcare facility in Oak Park, catered to nearly 100,000 patients annually and was a significant local employer until its sudden closure two weeks ago.
According to state records, the hospital is privately owned by two stakeholders: property owner Reddy Rathnakar Patlola and CEO Manoj Prasad, who handled operations.
Patlola is the proprietor of RAMCO Healthcare Holdings, while Prasad holds a majority stake in Resilience Healthcare, which oversaw operations at West Suburban Medical Center, Weiss Memorial Hospital, and the River Forest Medical Campus.
Following the closure of Weiss Memorial Hospital last summer, the offices at River Forest Medical Campus also ceased operations alongside West Suburban Medical Center on March 25.
Prasad blamed the hospital’s billing system for lost revenue, an allegation that the billing company has strongly denied.
As the ABC7 I-Team reported on Monday, Prasad was served an eviction notice last week by the property owner, which stated Resilience Healthcare had five days to pay $10.2 million for use of the property.
But on Tuesday, Resilience Healthcare filed a complaint in court, accusing the property owner of “sabotage” and attempting to force out hospital management to protect his own financial gain.
The complaint says the eviction notices served are “baseless,” given a specific provision in the signed lease for the hospitals, stating, “under no circumstances, including an Event of Default, shall Landlord have the right to unilaterally terminate the Lease.”
The complaint also notes an I-Team report that revealed in February the property owner, along with state officials and former hospital executives, met to discuss a plan to oust Prasad and Resilience Healthcare, given the hospital’s dire financial situation.
Resilience Healthcare is now asking the court to issue a declaratory judgment in favor of Prasad’s management.
“Faced with Patlola’s and Ramco’s continued malfeasance and its improper threat to evict them,” the complaint reads, “Weiss Memorial and West Suburban were forced to file the instant action to protect their rights and their ability to eventually reopen and serve the communities that need their assistance.”
Through a spokesperson, Prasad told the I-Team by email his focus remains on reopening the closed hospital.
“Today’s filing shows that Mr. Patlola signed a lease that explicitly prevents him from doing what he is now attempting to do,” Prasad said. “Our focus remains on reopening this hospital for the community that depends on it.”
A spokesperson for RAMCO and Patlola said he had no comment on Tuesday’s court filing, and a hearing date before a circuit court judge has been set for June 15.
Illinois’ 8th District state Rep. La Shawn Ford told the I-Team on Monday that several state agencies are probing the finances of West Suburban Medical Center leading up to its closure.
The Illinois Department of Healthcare and Family Services previously told the I-Team that Resilience Healthcare owes taxpayers at least $30 million in loans that were paid since 2023.
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