A Cook County judge expressed concern on Tuesday over the delay in finalizing a settlement that involves the sale of Weiss and West Suburban hospitals. This settlement requires Dr. Manoj Prasad to resign as CEO. The deal involves selling the now-closed hospitals to Insight Health Systems for $1.
Dr. Prasad is the CEO and majority owner of Resilience Healthcare, the company that operates the hospitals. Ramco Healthcare Holdings, which owns the hospital properties, has accused Resilience of delaying the agreement. This is despite both parties having agreed to the terms in a closed-door meeting with the judge on May 29.
No one has said to me, ‘This is the deal point it fell apart on,’” Judge Patrick Stanton remarked during a Tuesday hearing. He indicated that Resilience might be reconsidering the agreed terms.
In late July, Ramco filed a motion requesting the judge to enforce the settlement or appoint a receiver to take control of the hospitals. Ramco emphasized the importance of finalizing the deal to potentially reopen the facilities.
The Resilience attorney argued in court documents that the draft of the agreement exceeded the initial terms agreed upon in May. The attorney cited a health issue affecting Dr. Prasad, involving low blood sugar, as a factor during the negotiations. This raised doubts about his ability to fully understand the terms at that time.
Judge Stanton noted that Dr. Prasad had mentioned not feeling well due to missing lunch, for which he was given a yogurt and a granola bar. Stanton found the health issue justification surprising since he interacted with Prasad for hours on that day.
Resilience has also contested the settlement due to Insight’s involvement, though Insight is not directly involved in the legal proceedings. Judge Stanton clarified that the agreement outlined potential outcomes if Insight made an offer but did not bind them to purchase the hospitals.
Additionally, the judge considered allowing S&T Consulting and Management to intervene in the case. S&T claims it operated West Suburban’s emergency and mental health departments and has a contractual right of first refusal regarding managing West Suburban and Weiss.
Judge Stanton allowed Dr. Prasad to intervene in his capacity, expanding his involvement beyond his company’s role in the case. The next court date is scheduled for September 11.
Community members and former hospital employees are closely following the proceedings. They are advocating for the reopening of the hospitals, which serve critical roles. West Suburban closed in March due to cash shortages linked to billing issues. Weiss shut its doors a year ago following federal government actions and maintenance failures, including broken air conditioning units.