The property owner of West Suburban Medical Center, Ramco Healthcare Holdings, has filed a lawsuit in the Circuit Court of Cook County against Resilience Healthcare, which manages the hospital that abruptly closed last month.
On April 22, Rathnaker Reddy Patlola — the landlord of West Suburban through Ramco and a minority owner of Resilience Healthcare — filed the lawsuit for seven counts of breach of contract and is seeking to recover over $24 million in unpaid rent from Resilience-owned West Suburban, Weiss Memorial Hospital in Chicago’s Uptown neighborhood and other medical office buildings. The lawsuit also calls for a court-appointed receiver to take over hospital operations from Manoj Prasad, CEO of Resilience Healthcare, and alleges misappropriation of a $10 million state loan.
According to Ramco, the same day that Resilience received a $10 million loan for Weiss Memorial Hospital on May 2, 2025, the money was moved from Weiss’ lockbox account to the hospital’s operating account, then transferred to Westlaw Management Group — a company owned solely by Prasad. Ramco claims the money was not used for hospital operations, and Weiss closed that August after its Medicare agreement was terminated.
Ramco alleges that West Suburban’s closure is the product of financial and operational mismanagement by Prasad and that he lacks a viable plan to reopen the hospital.
“West Suburban Medical Center has been a vital healthcare resource for thousands of residents, including many who rely on safety net services,” Patlola said in a statement. “We are taking this action to ensure that a qualified and responsible operator can be put in place as quickly as possible to restore care and protect the health and well-being of the community.”
The filed lawsuit asks for a qualified receiver to be appointed to take over operations and manage the closed hospitals. According to Ramco, each hospital lease says that, in the event of a default, the tenant consents to the appointment of a new receiver and agrees not to contest it.
Ramco aims to restore emergency, inpatient and clinic services as fast as possible and recognizes that reopening the hospital depends on the timing of this court case and regulatory approvals.
“Every day this facility remains closed increases the strain on neighboring hospitals and puts patients at risk,” Patlola said in a statement. “We are committed to doing everything within our power to help bring West Suburban back online under capable leadership.”
Ramco plans to continue coordinating with state and local partners to explore options for continuity of care during the lawsuit.