West Suburban Medical Center’s Future in Question as Settlement Talks Begin Over Oak Park Safety-Net Hospital

OAK PARK, Ill. (WLS) — Settlement talks are moving forward over the shutdown of West Suburban Medical Center, the Oak Park safety-net hospital that employed hundreds of workers and treated thousands of patients annually.

The ABC7 I-Team has learned that one issue under discussion could involve the departure of Resilience Healthcare CEO Manoj Prasad from the troubled hospital.

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The negotiations stem from an ongoing court dispute between Prasad and the hospital’s landlord, Rathnaker “Reddy” Patlola. Their business relationship collapsed, leading both men to file lawsuits against each other.

A court hearing on the status of a potential settlement is set for Thursday morning.

Former doctors and residents who depended on the hospital say they remain concerned about what comes next for the closed facility, and some are questioning whether any agreement will truly address the community’s needs.

“I don’t see how this serves the community without a new owner that fundamentally commits to a new way of ownership,” said Dr. Vishnu Chundi, a former West Suburban physician who chairs the Chicago Medical Society’s task force focused on restoring care at West Suburban Medical Center.

Chundi told the I-Team that, in his view, the hospital’s path forward depends on a change in leadership.

“You’ve got physicians who have no trust in this ownership or the owner of the land anymore,” Chundi said. “You need something that helps the community with what their needs are.”

West Suburban Medical Center closed abruptly in March and restarted some patient access to clinics in April.

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But last week, the facility was forced to shutter those remaining services by the Village of Oak Park after the fire department was called to rescue patients on higher floors due to broken elevators.

“The hospital has 28 elevators, none of which were functional,” said village spokesperson Dan Yopchick. “That necessitated the [hospital’s] closure.”

Yopchick said the village is requiring at least two elevators to be repaired, operable and pass inspection before the facility can reopen.

Even if Prasad leaves his leadership role, it is still unclear how West Suburban would be capable of reopening.

Chundi said former physicians and other staff at West Suburban Medical Center are working to recoup more than $1 million dollars still owed for past services rendered.

“There has not been any communication from Dr. Prasad and company about how they’re going to settle those fees,” Chundi said.

Neither Prasad nor Patlola responded to the I-Team’s request for comment on Wednesday.

Regardless of what happens in court on Thursday, any changes to the hospital need to happen quickly as a deadline for the provider’s federal license approaches.

A federal license for West Suburban Medical Center to receive Medicare and Medicaid funding is set to expire Sept. 30, if no corrective actions take place, including building repairs and other deficiencies, according to an Illinois Department of Public Health inspection report reviewed by the I-Team.