A Cook County judge is addressing delays in finalizing a settlement agreement concerning Weiss and West Suburban hospitals. The agreement aims to sell the hospitals to Insight Health Systems for $1 and requires Dr. Manoj Prasad, CEO of Resilience Healthcare, to resign.
Despite a closed-door meeting on May 29, where both parties agreed to the settlement, Ramco Healthcare Holdings claims Resilience Healthcare is delaying the finalization. Ramco filed a motion in late July requesting enforcement of the settlement or the appointment of a receiver to manage the hospitals.
On Tuesday, Cook County Circuit Judge Patrick Stanton expressed concern over Resilience’s hesitations. He indicated evidence suggests Resilience wants to back out of the agreement. Stanton stated, “No one has said to me, ‘This is the deal point it fell apart on’,” questioning Resilience’s intent.
“Someone changed their mind,” Stanton remarked. “This is someone who wants out of a deal.”
Resilience’s attorney argued the written settlement draft exceeds the terms agreed on May 29 and mentioned Prasad’s health incident, potentially affecting his capacity to negotiate effectively. Prasad reportedly experienced low blood sugar during negotiations, raising questions about his ability to comprehend the settlement terms fully.
Judge Stanton responded, noting Prasad’s mention of feeling unwell due to missing lunch, after which he was given food. Stanton said the health argument was new to him, as he interacted with Prasad for hours on that day.
Resilience also contends the settlement cannot be finalized since Insight is not a party in the proceedings, although the agreement details actions if Insight decides to purchase the hospitals. Stanton clarified that Insight is not bound by the agreement but is part of potential future actions.
In addition, an attorney from S&T Consulting and Management discussed their interest in intervening, citing a contractual right to first refusal related to operating West Suburban and Weiss hospitals.
Judge Stanton allowed Prasad to intervene in the case individually, previously limited to his company’s involvement. The next court date is scheduled for September 11. Community leaders and former hospital workers are closely watching developments, advocating for the hospitals to reopen.
West Suburban closed in March due to billing issues and cash shortages, while Weiss closed last year after the federal government barred Medicare billing, citing various operational issues.