West Suburban Medical Center Issues Permanent Layoff Notices to Nearly 500 Furloughed Oak Park Workers

OAK PARK, Ill. (WLS) — Roughly 500 furloughed workers at West Suburban Medical Center have been notified that they will not be returning to their positions, the latest sign of uncertainty surrounding the hospital as its owners continue talks aimed at resolving its future.

ABC7 reviewed multiple copies of a letter sent to employees informing them that “a mass layoff at West Suburban Medical Center” would begin Aug. 31 and that the action “is expected to be permanent.”

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Hospital CEO Manoj Prasad told ABC7 the notices were issued to comply with the Illinois Worker Adjustment and Retraining Notification Act, known as the WARN Act. The law limits furloughs to six months and requires employers to provide advance notice before permanent separations.

Prasad said the hospital’s intention to reopen has not changed, though he acknowledged that no definite reopening date has been set.

Sylvia Williams, a former head of nursing at West Suburban Medical Center, said employees understood layoffs were possible but had hoped the hospital would avoid taking that step.

The layoff notices come as a legal dispute continues between Prasad and landowner Rathnaker Patlola, who are both tied to West Suburban Medical Center. The two filed lawsuits against each other in the weeks after the hospital closed in March.

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ABC7’s I-Team attended a court hearing Tuesday focused on the status of settlement discussions involving the hospital. Attorneys for Resilience Healthcare did not bring up the layoffs during the proceeding.

Sources familiar with the settlement talks told the I-Team the notices were “a big deal” and said Prasad “had not consulted with anyone” about moving forward with permanent layoffs for the remaining furloughed employees.

One source also told the I-Team that the judge was surprised by the news and “upset” it was not disclosed.

Patlola issued a statement saying, in part, that he was “surprised and disappointed” and that employees “deserved far better.”

Settlement negotiations over the future of West Suburban hospital remain ongoing.