Legal Battle Erupts Over Control of West Suburban Medical Center Amid Closure

The ongoing struggle for control of West Suburban Medical Center intensified Wednesday as Ramco Healthcare Holdings initiated a lawsuit in Cook County Circuit Court, seeking a court-appointed receiver to assume management of the Oak Park hospital. The move comes in the wake of the facility’s recent closure and ongoing leadership disputes.

Ramco Healthcare Holdings, which owns the property housing West Suburban Medical Center, is controlled by Rathnaker Reddy Patlola—also the minority shareholder of Resilience Healthcare, the private firm that owns and operates West Suburban as well as Weiss Memorial Hospital. The legal action targets Dr. Manoj Prasad, CEO and majority owner of Resilience Healthcare.

In filings, Patlola accuses Dr. Prasad of financial mismanagement and alleges breaches of lease agreements, including over $20 million in unpaid rent. The suit also claims that a $10 million state loan intended for hospital operations was improperly diverted, allegations Prasad denies. According to Prasad, the funds were used for payroll and operating costs with oversight by both parties.

The dispute over West Suburban’s management escalated after Resilience temporarily closed the hospital on March 25 and furloughed most staff, citing revenue problems linked to a faulty electronic medical records system. The closure left the Oak Park community without a key provider of medical services, particularly affecting low-income residents. Some outpatient services have since resumed, and Prasad has announced plans to fully reopen the hospital by July.

In addition to requesting a receiver and financial damages, Patlola stated he is exploring new management options for the facility, including ongoing discussions with Insight Hospital & Medical Center. Prasad has publicly dismissed these efforts, insisting he is best positioned to restore operations.

As both parties pursue parallel lawsuits regarding control and eviction at West Suburban and related properties, the future of hospital management—and the timeline for full service resumption—remains uncertain. Court proceedings continue as the Oak Park community awaits resolution.