The owners of Weiss and West Suburban hospitals have agreed to proceed with the sale of the hospitals despite their recent bankruptcy filing.
California-based Pipeline Health has reached an agreement with Resilience Healthcare and Ramco Healthcare Holdings, with Resilience and Ramco taking over operations of the hospital on Dec. 2, Pipeline announced Wednesday. The agreement must be approved by the US Bankruptcy Court for the Southern District of Texas.
The second phase of the sale, which is expected to close in the coming months, will require Ramco to purchase real estate related to the facility.
The deal comes after Pipeline, which has owned the hospital since 2019, filed for Chapter 11 bankruptcy in October, putting the future of the sale in question. The state board first approved the sale to Resilience, where he was valued at $92 million, in June.
It also follows years of twists and turns over the fate of the Weiss Memorial and Oak Park’s West Suburbs Medical Center in Chicago’s uptown neighborhoods, as well as their hostility to their owners, Pipeline.
Pipeline angered community members and leaders shortly after it acquired two hospitals and Westlake Hospital in Melrose Park. Pipeline initially said it would turn around the three facilities, but a few weeks after taking ownership, he said he would shut down Westlake, suggesting similar plans for Weiss and West Suburban. concerns arose.
Those concerns were later stirred when Pipeline agreed to sell Weiss’ parking lot to a developer who planned to build apartments on the site.
As part of the sale to Resilience, Pipeline will loan Resilience $12 million from the Wyeth parking lot sale to reinvest in the hospital.
Resilience is a newly formed for-profit company headed by Manoj Prasad, who said his initial training was as a doctor but has spent much of his career helping turn around medical facilities.
Reddy Rathnakar Patlola, a New Jersey-based businessman, is Resilience’s financial partner and will invest in the acquisition and operations. Patlola’s company, his Ramco Healthcare Holdings, owns the land on which the hospital is located, and Resilience enters into a long-term lease with his Patlola.