Resilience Healthcare, a Michigan-based healthcare management group, is expected to assume all operations of West Suburban Medical Center in early December. The hospital’s current owner, Pipeline Health Systems LLC, announced a sales agreement had been reached with Resilience in a Nov. 23 news release.
The sale was approved in Texas bankruptcy court Nov. 24. Resilience will assume operations of the hospital Dec. 3, not Dec. 2 as previously reported. The change in ownership has been in the works since last March and has had some bumps in the sales process.
The sale also includes Weiss Memorial Hospital in Chicago’s Uptown neighborhood, as well as West Suburban’s River Forest medical campus and the Chicago Health Medical Group.
“We are excited about this progress and look forward to a closing date of Dec. 2 for Resilience to assume the hospital operations and continue serving the communities around Weiss and West Suburban,” said Jane Brust, a Pipeline spokesperson.
The agreement between Pipeline and Resilience is bifurcated. While Resilience will take over the operations for both hospitals early next month, the two healthcare groups are still working out the details regarding the purchase of the medical facilities and underlying real estate. That second phase is still under discussion.
“We expect it close in the next few months as the second transaction of the deal,” said Brust.
The sale of the two hospitals has a planned price tag of $92 million, with a $12 million refund going back to West Suburban and Weiss as previously committed. Resilience is led by healthcare executive Manoj Prasad and his financial partner, Rathnakar R. Patlola, who manages Ramco Healthcare Holdings LLC. Wednesday Journal has reached out to Prasad for comment.
The California-based Pipeline says it invested $60 million in the two hospitals since it took over ownership in 2019. Pipeline and its affiliates filed for bankruptcy Oct. 2. The U.S. Bankruptcy Court for the Southern District of Texas is expected to approve the sales agreement next week, according to Brust.
West Suburban is considered a safety net hospital. More than 80 percent of the hospital’s patients live in the Chicago’s Austin community. Weiss is a high Medicaid hospital.
“Pipeline Health is excited to reach this milestone in discussions and plans for change of ownership and we are grateful to hospital leadership, employees and physicians who have continued their ongoing dedication to the patients they serve,” said Brust.