A heated legal battle is underway regarding the future of West Suburban Medical Center, as discussions intensify about whether an independent entity should assume control to halt its financial decline and potentially revive the facility following its unexpected shutdown in March.
During a court session on Friday, a judge clarified that accusations suggesting state loans amounting to tens of millions of dollars were siphoned into a personal account were baseless.
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The hospital’s parent company, Resilience Healthcare, is jointly owned by Reddy Rathnacker Patlola and Manoj Prasad. This company also owns Weiss Memorial and West Suburban, both of which have ceased operations.
Prior to its sudden closure on March 25, West Suburban Medical Center was a significant employer with over 700 staff members and catered to the healthcare needs of tens of thousands of patients annually.
Legal representatives for Patlola are urging a Cook County judge to remove Manoj Prasad from his role as CEO of Resilience Healthcare. They propose appointing a third party to manage the hospital’s reopening, as it currently faces substantial debts, including unpaid bills, property taxes, and rent.
However, Prasad’s legal team argues that Patlola lacks the authority to make such a request. They assert that Prasad is capable of resolving the billing issues that allegedly led to the hospital’s closure.
“The hospital has been closed more than several months. A lot of the staff has had to get jobs. We’re fighting. I’d like to see a receivership with a independent third party so they can make a determination what the community needs are, because that community is, again, being failed by not just the two owners, but also by the state,” former West Suburban doctor, Dr. Vishnu Chundi, told the I-Team.
Accusations from Patlola’s attorneys that Prasad transferred tens of millions of dollars in state loans into a private account were not proven in court.
A “special master” was appointed to examine financial documents, finding the majority of the $35 million in state loans was used for hospital purposes.
However, Patlola’s attorney claims $2.2-million dollars was found to be transferred from an account Prasad owned to one owned by his daughter.
The I-Team previously reported investigations by state authorities into Resilience Healthcare are underway.
Patlola’s attorney told the court it’s been nearly 10 months since Weiss Memorial closed and it is no closer to reopening, and its hospital licenses are set to expire in a matter of months. He said the same is true of West Suburban.
Community members and faith leaders held a news conference this week pleading for the state to step in to reopen the embattled hospital.
“We’re all here today because this issue can no longer be ignored. For many in our community, this hospital was more than a medical facility. It was a lifeline,” said Pastor Lajuan Whitfield, New Life Holiness Church.
The judge is expected to rule Monday on whether West Suburban stays under the control of its CEO Manoj Prasad. Though it is now closed, money is still coming in. Attorneys told the court West Suburban is still receiving hundreds of thousands of dollars a week for procedures that occurred before it shut down.
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