Pipeline Health System, the small California based health care company currently in bankruptcy, completed its sale of West Suburban Medical Center and Weiss Memorial Hospital, its two money-losing Chicago area hospitals, just before the close of 2022.
The deal has been in negotiations and state approval processes since last March.
The buyer is Resilience Healthcare, a newly formed entity created to purchase and operate West Sub and Weiss. Resilience took over operations at both hospitals on Dec. 2 as Pipeline looked to stem its ongoing losses. The sale of the underlying real estate and physical assets of the institutions took a bit longer to resolve.
The real estate transaction was finalized late Dec. 29 and involved the purchase of the West Sub campus on Austin Blvd. in Oak Park, its River Forest medical campus on Lake Street and Weiss Memorial properties in Chicago’s Uptown neighborhood.
Resilience Healthcare is led by health care executive Manoj Prasad and his financial partner Rathnakar R. Patlola, who manages Ramco Healthcare Holdings. Pipeline sold the hospitals’ properties to Ramco, fulfilling the second phase in the ownership transition.
“Pipeline Health is pleased to complete the second phase of this change of ownership, and we wish all the best for these two hospitals in the new year and in the years to come,” Pipeline spokesperson Jane Brust told Wednesday Journal.
Resilience becomes just the latest in a string of owners of West Sub, now described as a safety net hospital serving the West Side of Chicago and the Oak Park area.
Pipeline reported that the failure to close this deal with Resilience over the summer resulted in its need to file for bankruptcy.