The future of West Suburban Medical Center is looking more uncertain than ever in light of a lawsuit reported by a Chicago real estate news website.
In a Dec. 22 article, The Real Deal Real Estate News’ Emma Whalen reports that affiliates of West Sub’s former owners, Pipeline Health, have sued West Sub’s current corporate parent, New Jersey-based Resilience Healthcare, for failing to pay $67 million allegedly owed to the Pipeline entities.
West Sub CEO Manoj Prasad told media outlets in early 2023 that the deal for West Sub and Weiss Memorial Hospital on Chicago’s North Side was worth $92 million. The Real Deal reports that sale was funded in part by a $22 million loan from California-based First Credit Bank and a $67 million loan note from Pipeline with a December 2024 maturity date.
Last December Resilience failed to pay back the $67 million owed to the Pipeline entities, The Real Deal reports. Attorneys for Pipeline and representatives of Resilience, they said, did not respond to requests for comment.
Last June, six months after Resilience Healthcare allegedly defaulted on the $67 million loan, the federal Center for Medicare Services terminated Weiss Memorial’s participation in Medicaid reimbursement after the hospital’s air conditioning failed. With Weiss reportedly relying on Medicare and Medicaid for 87 percent of its revenue, Resilience Healthcare made the decision to close the hospital on Aug. 8. Some medical services continue to be offered on the Weiss campus.
“Due to a catastrophic HVAC failure, all inpatient units were evacuated on June 18,” Weiss Memorial said on its website. “The Emergency Department remained opened until Aug. 8, 2025 but also had to be closed pursuant to a loss of Medicare and Medicaid funding.”
The Real Deal reports that the alleged $67 million debt default referenced in Pipeline’s lawsuit “is listed in public records as a subordinate mortgage, meaning Resilience is likely on the hook to cover the $22 million CMBS debt before making the lenders of the larger debt whole.”
In the course of negotiating the sale of West Sub and Weiss to the newly created Resilience Healthcare, Pipeline entered bankruptcy. At the time the Journal reported that Pipeline blamed its financial woes entirely on growing losses at its two Chicago hospitals.
“For now, the tangled legal mess leaves West Suburban Hospital in a precarious situation and puts a heavier burden on Weiss Memorial Hospital’s potential to reopen,” The Real Deal reports.
That set of circumstances likely places West Suburban Medical Center in serious jeopardy.
Last summer Prasad told a press conference that West Sub’s future was uncertain and that the hospital made decisions on what bills to pay based on what cash was received on a given day.
