West Suburban and Weiss Hospitals Face Eviction Amid $24 Million Rent Dispute

Eviction notices demanding nearly $25 million in unpaid rent were posted on the doors of West Suburban Medical Center and Weiss Memorial Hospital in suburban Chicago, marking the latest escalation in a dispute between the facilities' ownership partners. The notices, dated April 9, gave just five days to settle outstanding rent before eviction proceedings would advance.

The River Forest and Oak Park campuses of West Suburban Medical Center abruptly closed in late March when payroll complications, attributed to a malfunctioning electronic medical record system, left employees unpaid. Weiss Memorial Hospital, located in Chicago’s Uptown neighborhood, shuttered last summer after losing federal funding for Medicare and Medicaid services.

Resilience Healthcare, a private company led by CEO Dr. Manoj Prasad, owns both hospitals. However, legal documents reveal that minority owner Rathnaker Reddy Patlola, through his company Ramco Healthcare Holdings, LLC, holds the deeds to the hospital properties and acts as their landlord. Patlola initiated the eviction notices, totaling $24,478,556.25 in alleged unpaid rent across all properties.

Dr. Prasad responded with a lawsuit in Cook County Circuit Court, arguing that the lease agreement prevents such evictions. The complaint claims the lease stipulates the landlord cannot unilaterally terminate the agreement, requires 90 days' notice, and mandates good faith negotiations during financial difficulty. Prasad maintains that the demand for back rent is without legal merit and states his intent to reopen West Suburban for the local community.

Meanwhile, Patlola has engaged in talks with other healthcare operators, including Insight Hospital & Medical Center, about potentially reopening West Suburban under new management. A Ramco spokesperson expressed doubts about Prasad’s leadership and confirmed the company’s search for alternative solutions.

Before their closures, both hospitals struggled with facility maintenance, critical patient care, and ongoing revenue declines. Inspection reports highlighted heating issues at West Suburban and major problems in both the emergency room and air conditioning at Weiss.

As of now, the legal battle between the ownership partners continues while both facilities remain closed. There is no immediate timeline for reopening, and control over the hospitals' future operations remains unresolved.