Manoj Prasad is out as owner and CEO of West Suburban Medical Center and Weiss Memorial Hospital after reaching an agreement with his business partner and landlord, Rathnakar Reddy Patlola, to sell his interest in the hospitals.
The agreement between Patlola and Prasad was announced Wednesday night around 10:30 by Chancery Court Judge Patrick Stanton, following a marathon 6 1/2-hour meeting in chambers. That followed a 4 1/2-hour meeting Wednesday afternoon.
Patlola’s attorney Scott Kaplan did not respond to an email requesting comment on and details of the buyout.
The agreement ends a six-month-long legal saga that saw numerous hearings, many hours of closed-door negotiations with a judge and multiple changes of attorneys.
The decision by Patlola to buy out Prasad eliminates the need for a receiver to take over West Sub and Weiss and suggests the general terms of a settlement reached on May 29 will take force, including Insight Health Systems owning and managing West Sub and Weiss.
Atif Bawahab, president and CEO of Insight Hospital and Medical Center in Chicago, said in a statement that the agreement “is the start of a long, phased process, not the end of one.”
“We were asked to step in at West Suburban and Weiss because these communities cannot afford to lose their hospitals, and Insight has done this hard work before,” Bawahab said.
Insight currently operates the former Mercy Hospital on the Near South Side.
“In the coming period, we will begin a careful assessment of both hospitals to determine the appropriate path forward for each.” He said there are “real hurdles ahead” that include “restoring licenses and certifications, rebuilding systems and staffing, meeting regulatory requirements, and earning back the confidence of patients and providers— and none of that happens overnight.”
Bawahab said Insight’s approach will be deliberate and judicious. “We are mission-driven, and that includes protecting what we have built at Insight Chicago — the care of the patients and staff who depend on us today will not be disrupted by this effort. We are committed to doing this the right way: carefully, sustainably, and in full coordination with state regulators.”
Insight board member Henry Barlow was present at a press conference Thursday morning at the Greater Rock Baptist Missionary Church on the West Side. The event was organized by the Rev. Robin Hood, leader of The Coalition to Save Safety-Net Hospitals.
Barlow underscored the time and attention needed to assess and rectify the situation at West Sub, saying it will be “a long process. This is not going to be overnight.”
Barlow said officials from Insight were “reading through the settlement” and starting the process of working to “find out what it’s going to take to get (West Sub) operational again.”
“Some services (may) open up faster than other services, “he said, noting that no one knows the condition of the hospital physically or financially. “It depends on what is seen and what is found.”
Asked when West Sub might reasonably be expected to begin re-opening, Barlow said, “We’re talking about four months out.”
Several themes were evident, including a celebratory feeling at Prasad no longer having control of West Sub, whose closure had severely impacted many people on the city’s West Side.
Hood voiced two primary emotions evident Thursday morning; deep anger at Prasad and relief that he no longer is involved with West Sub.
“We got the devil out of the details,” Hood said. “We’re glad Prasad is no longer able to destroy our institution.”
Asked if he thought a report on the West Sub closure might result from Insight taking over, Hood said “Yes, there’s going to be a report out. I don’t know when.”
Echoing Barlow’s admonition that the fight for West Sub was only the end of the beginning, Hood said “We can’t stop now. One fight we’ve won. The battle is still on.”
Hood also voiced sharp criticism of a recently passed Illinois law that exempts hospitals from having to disclose their finances under the Illinois Freedom of Information Act. He called it “hideous.”
“That law needs to be repealed,” said Hood, who termed it “the anti-transparency law.”
He said the next step for his coalition was to “go to Springfield and sit with the governor” and voice their concerns.
This is a developing story. Watch for additional coverage of the impact of this sales agreement.