Community members wary, but hopeful, of sale of Weiss, West Suburban hospitals
After years of battles with the owners of Weiss and West Suburban hospitals, community members are wary, but hopeful, of what a proposed sale of the hospitals might mean for their neighborhoods and health care.
Pipeline Health, which is the California-based owner of Weiss Memorial Hospital in Uptown and West Suburban Medical Center in Oak Park, announced March 10 that it intended to sell the hospitals to Michigan-based Resilience Healthcare for $92 million. The sale must still be approved by the state Health Facilities and Services Review Board.
The announcement came just three years after Pipeline bought the two hospitals, along with Westlake Hospital in Melrose Park for $70 million, pledging to turn around the financially struggling facilities.
“We have been struggling to make these hospitals successful,” said Nick Orzano, Pipeline founder and board member, in a news release about the proposed sale. The owner of Resilience “approached us to take on the challenge, and we believe he is an excellent fit, with a proven track record of success, for the communities we serve.”
Pipeline noted that it’s invested $60 million in the two hospitals since taking ownership.
In recent years, however, Pipeline has angered community members and leaders. In 2019, just weeks after buying the three hospitals with promises to rejuvenate them, Pipeline said it planned to close the 230-bed Westlake because the hospital was losing too much money. Though the village of Melrose Park sued over the decision, the hospital ultimately shuttered.
More recently, Pipeline agreed to sell a Weiss parking lot to a developer hoping to build apartments on the site, over the objections of some community members who worried that it was the beginning of the dismantling of Weiss, and that the building would further contribute to gentrification, driving out lower-income residents.
Pipeline said it plans to give the $12 million from that parking lot sale to Resilience to reinvest in the hospitals.
Ald. James Cappleman, 46th Ward, reassured constituents in a recent newsletter that the sale will help to ensure Weiss’ survival.
“This potential sale will allow a new owner, rather than a private equity firm, to increase investment in Weiss Hospital and commit to its continued success,” he wrote.
But given Pipeline’s history in the Chicago area, some community members say they don’t trust anything Pipeline does, including selling the hospitals.
“It’s really a slap in the face ... to the people who work at Weiss Hospital because they are just in limbo again as to their job security,” said Angela Clay, a board member with Northside Action for Justice. “It’s like ripping a band-aid off of a wound that never got a chance to heal.”
Others say given Pipeline’s history with the hospitals, they’re glad to see Pipeline go.
“We think it’s a victory that Pipeline is out of the picture,” said Marc Kaplan, also a Northside Action for Justice board member. “We just don’t know anything about Resilience.”
Resilience is a newly created, for-profit company, said Courtney Avery, a spokeswoman for the company, in an email. Resilience is led by Manoj Prasad, who has been a “hospital transformation leader” since 1998, and has successfully turned around hospitals and health systems in Michigan, Texas and Florida, according to a Pipeline and Resilience news release.
New Jersey-based businessman Rathnakar Patlola is a financial partner in Resilience and will invest in the acquisition and operations. Patlola’s company Ramco Healthcare Holdings will own the land on which the hospitals sit, with Resilience entering into long-term lease agreements with Patlola.
Resilience does not intend to make any service cuts or lay off front-line workers, Avery said. The hospitals will keep their current names. It intends to run the hospitals long-term, with Prasad moving to the area.
“The beauty of living in the community is that I can, with a bird’s-eye view, seek and receive direct feedback from everyone vested in the success of the hospitals, including the community, staff and patients,” Prasad said in a statement. He plans to attend town halls in coming weeks to meet with community members as well as hospital leaders and staff.
Community members hope they’ll have a better experience with Prasad than they had with Pipeline.
Already, some leaders, including Oak Park Village President Vicki Scaman have praised the proposed purchase.
“West Suburban has been a valued resource to Oak Park and the surrounding community for generations,” she wrote in an email. “I believe this is a moment for congratulations to West Suburban leadership and board for what I believe will be an even stronger partnership focused on providing quality medical services. Mr. Prasad is committed to Oak Park and the greater region.”
Ruth Castillo, of Uptown, said she hopes Prasad listens to residents about what they need and want from Weiss.
“I see Weiss as a huge, valuable asset to this community. ... I want to see it there for the long term because it provides so much care for my neighbors and people who are aging in place,” Castillo said. “Now that this new owner is coming in, I hope he understands the desire of the community to see Weiss thrive.”
Daniel I. Dorfman contributed.
