Judge Questions Delay in Hospital Settlement Agreement
A Cook County judge expressed concern on Tuesday about the delay in finalizing a settlement agreement aimed at selling Weiss and West Suburban hospitals. This agreement would also require the current CEO, Dr. Manoj Prasad, to step down from his position. The settlement proposes selling the now-shuttered hospitals to Insight Health Systems for $1. Dr. Prasad is the CEO of Resilience Healthcare and the majority owner of the entity managing the hospitals.
Ramco Healthcare Holdings, which owns the hospital properties, accused Resilience of stalling the settlement process. Both parties had previously agreed to the settlement terms during a closed-door meeting with the judge on May 29. In July, Ramco requested the court to enforce the settlement or assign a receiver to oversee the hospitals, arguing that their future and potential reopening are at stake.
Judge Patrick Stanton criticized Resilience’s reasons for the delay, saying there has been no clear indication of any particular deal point causing the collapse. Stanton remarked that all evidence suggests Resilience’s reluctance to adhere to the settlement. He further added, “Someone changed their mind… This is someone who wants out of a deal.”
An attorney representing Resilience argued against enforcing the settlement, stating that the draft agreement exceeds terms agreed upon in May. The attorney also mentioned that Dr. Prasad had experienced a health issue involving low blood sugar during negotiations, which could have impaired his ability to fully understand and voluntarily agree to complex terms.
Judge Stanton was skeptical about this claim since Prasad received snacks after feeling unwell, and no further complications were mentioned at the time. Stanton expressed, “This is news to me as I sat there and talked to him for hours that afternoon.”
Resilience also claims that Insight is not officially part of the proceedings, although its involvement is included in the settlement terms. Judge Stanton clarified that Insight’s purchase would not be binding but illustrates the plan if an offer is made.
Additionally, the judge discussed another company’s interest in the case, S&T Consulting and Management, which seeks to intervene due to its operational involvement with West Suburban’s emergency and mental health services.
Judge Stanton allowed Dr. Prasad to participate in the case individually alongside his company, Resilience Healthcare. A follow-up court session is set for September 11.
The case is monitored closely by community leaders and former hospital staff pushing for the hospitals’ reopening. Financial deficits led to West Suburban’s closure in March, while Weiss closed a year prior due to rejected Medicare billing after equipment failures.